COBDEN, Ont. – Whitewater Region (WWR) Township council has approved the creation of a by-law to establish a Municipal Liability Insurance Program policy. An insurance information package is also being developed to help users and potential users of municipal facilities become aware of the changed requirements.
The February 19 decision is in response to direction from the township’s insurer, received last July and effective last September which requires verification of liability insurance from all users.
WWR’s Manager of Parks and Recreation, Stephanie Plebon, told council that going forward, the insurer will not cover events involving alcohol or liquor service. Further, the amount of the insurance premium charged to the renter varies depending on the use of the facility, and factors such as whether the event is a sport or non-sport activity, and whether it is deemed low or high risk.
Ms. Plebon proceeded to outline some of the requirements that must be met in order to qualify for coverage from its insurer, and how these are being addressed by the municipality.
“Users must sign agreements outlining the partnership expectations of planned events,” she said. “So, the developing of an insurance information package was a good first step. It’s important to note that with the varying nature of special events and programs, some of which we’ve never come up with before, there may need to be amendments to our insurance requirements.”
Additional insurance requirements
Community groups may be required to obtain their own additional insurance, particularly for events or activities that are not directly managed or endorsed by the municipality, or those which include liquor liability coverage.
The program must be held on municipally-owned property or inside a municipally-owned facility.
“Managing partners and community groups will provide regular communication with staff so that we are aware of the programs they’re offering,” she continued. “So, if it’s something that they’re doing out of the norm that we don’t normally see, or if we aren’t sure what it is they’re planning, we would ask for additional details.”
If an additional insurance policy is required to manage or hold an event or program, users have the option of getting the insurance through the township’s municipal insurer or going on their own to obtain coverage.
“So, it’s not blanket coverage,” Ms. Plebon said. “If the planned program changes from the approved event, coverages may not apply. The township will not allow uninsured, or improperly insured, events to take place on our property.”
With increased correspondence between the township and the insurance broker, partially resulting from providing supplemental insurance to various organizations, the municipality has incurred an additional $8,200 over 2024 in the management fee portion of its insurance costs.
“We’re hoping that over the next few years that cost actually stabilizes as we develop these guidelines and come up with these policies,” she said.
Getting into specifics
Councillor Mike Moore asked about the insurance status of the summer entertainment in Cobden Park.
“Where does that fall into?” he asked. “Is that totally under us, even though we don’t organize it?”
“Yes, it would be totally under us,” Ms. Plebon replied.
Referring to the cost increase, Mayor Neil Nicholson asked for confirmation that the township pays by the number of engagements insured.
“Yes,” said Treasurer Kurtis McGonegal. “We have one broker, who then goes out and finds insurance for each individual user for liability, automobile, or whatever. A portion of their cost is for managing our accounts and talking to all these different insurers and getting information back.
“That has traditionally been a very, very low amount, because we really didn’t have to reach out to them very often; once at the start of the year, just to review our policies, and then for any other little questions we had through the year. Now that we are a little more complex in our insurance output, they looked at the amount of time that they’re spending, and that’s why this increase has occurred.”
He added this is the first increase in about three years.
CAO Ivan Burton commented that township staff is learning more about the insurance field and managing its relationship with the broker.
“So, at the same time as we’re engaging with them more on the matters of preparation, we’re also educating ourselves with different areas of the insurance world,” he said.
He added costs will probably go down over time as less consultation with the broker is needed.
Feature image by iStock.com/PeopleImages
