In a staff report outlining the results of a recent insurance request for proposal, Perth County’s manager of finance recommended the lowest bidder – and the county’s existing provider – AON Reed Stenhouse Inc.
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“It is recommended that Perth County accept the AON proposal because the premiums are lower, there are efficiencies staying with the existing provider, and the limits and scope of coverage provided by both proponents are substantially similar,” Corey Bridges wrote in his Dec. 21 report to council.
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According to the report, the 2024 total insurance renewal of $624,028 represents an increase of $59,225, excluding applicable taxes, which is a 10.49 per cent jump overall from Perth County’s 2023 premiums.
Perth County last requested proposals from insurance companies in November 2016, when AON was eventually selected out of four bids.
“Due to the complexity of municipal insurance risks and needs, there are only four providers in Ontario who offer municipal insurance plans,” Bridges explained to councilors.
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These providers are Marsh Canada, AON Canada, BFL Canada Risk and Insurance Services, and; Intact Public Entities, formerly the Frank Cowan Company.
Bridges’ report noted both the AON and Marsh property and equipment breakdown coverages were similar, offering broad all-risk protection on a blanket replacement cost basis with limits at $65,000,000. Deductibles were the same in both bids.
Coun. Sue Orr of Perth South asked if the county had recently completed a replacement costs evaluation for all of its buildings and equipment, and questioned whether these bids provided enough coverage.
Bridges explained that staff did an assessment in 2017. He said that assessment showed the significant amount of building value lies with the Perth County Courthouse, which is insured for $30 million.
“We should be in a position where we should be looking at a new condition assessment to get those values in the near future,” the finance manager added.
The motion to receive the report and award the contract to AON was carried unanimously.
The Local Journalism Initiative is funded by the Government of Canada.
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