Big jump in insurance for City of Elliot Lake
Elliot Lake’s Ad Hoc Budget Committee was a bit taken aback to find out the city’s insurance for the year in taking a hefty jump.
Following insurance claims for the Lester B. Pearson Civic Centre and others, and the effect of the pandemic, increases were expected, but city treasurer Amy Sonnenburg says the insurance carrier has quoted the city a substantial increase over the $784,000 it paid in 2020, an additional cost of nearly $275,000.
City of Elliot Lake photo
The Ad Hoc Budget Committee in Elliot Lake is hoping that 2022 can look a bit brighter when it comes to insurance costs, more so after learning they have no choice but to accept a 43% hike for 2021.
City treasurer Amy Sonnenburg told council the city was fortunate in even being able to get a quote following the devastating effects of the pandemic on the insurance industry and the claims put in by the city.
She says the cost has risen to just over $1-million for 2021, a hike of nearly $275,000 in additional costs over last year to insure all city assets, buildings and other costs.
She told council the carrier had to spread out the costs of liability with several insurance companies to be able to bring in the quote.
Council was not pleased with the substantial hike but realizes it has to bite the bullet this year, and a motion was passed to have the finance department come back in March with a draft Request for Proposals to look at alternatives for 2022.