Paradise saves a packet on insurance changes

By Mark Squibb

The Town of Paradise expects to save big on commercial insurance premiums this year.

As per contract provisions with insurance provider Aon Reed Stenhouse that were ratified in 2022, the Town is seeking its second of four potential renewal periods for which the provider has given updated rates.

Councillor Larry Vaters updated council Tuesday on the changes in the rates, which he said included no significant increases.

“This shows a steadying of the insurance market after several years of challenges in volatility,” Vaters said.

While the Town’s automobile insurance premium will increase by 3 per cent due to changes in its fleet, it will see a net decrease of $386.

“Changes in fleet also result in a credit on the prior year policy of $1,403,” Vaters said.

For property and business interruption insurance, fees will increase by $8,891 plus tax, due to a 4 per cent general increase in premium rates and the increased value of the properties being covered.

Vaters noted that all values for this change were increased by the minimum required inflation rate of seven per cent.

For equipment breakdown insurance, there will be an increase of $417 plus tax due to an increase in the value of property being covered. The seven per cent inflation increase applies here as well, and there was no increase on the premium.

Crime insurance saw an increase of $60, which Vaters noted as a “very nominal” increase.

Network security and privacy liability insurance is where the Town will see the biggest change in pricing, with a decrease of $11,785