HomeMy WebLinkAboutTR-28-85 CORPORATION OF THE TOWN OF NEWCASTLE
TREASURY DEPARTMENT K, CAMPBELL, G.A.,TREASURER
40 TEMPERANCE STREET TEL.(416) 623-3379
BOWMANVILLE, ONTARIO
LiC 3A6
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MEETING OF MAY 6, 1985
REPORT NO.: TR-28-85
SUBJECT: INSURANCE COVERAGE
RECOMMENDATION:
It is respectfully recommended that the General Purpose and
Administrative Committee recommend to Council that this report
be received for information.
BACKGROUND AND COMMENTS:
In June 1984 Resolution #GPA-653-84, restated as follows:
"That Committee defer the consideration of an excess layer of
liability insurance to cover possible catastrophic loss in the
amount of $5,000,000.00 until the 1985-86 premium year" was
passed . The consideration of this form of coverage is becoming
an increasingly important issue and will be discussed during the
insurance coverage review in June. This information report is
brought forward now, as Council might wish added time to
consider this issue and its impact on the municipality in the
future.
A recent circular from Frank Cowan Company Limited and newspaper
coverage related to certain court awards, is reinforcing the
need to consider the excess liability insurance coverage, again.
The awards made by the courts are increasingly generous and
place the largest percentage of the burden of care upon the
municipality. Since such cases often take years to resolve, the
circumstances in evidence at the time of the occurance may be
substantially changed by the time of settlement. This
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passage of time appears to work in the favour of the complaintant
and not the municipality.
Although the case against the City of Brampton will certainly be
appealed, it does indicate that the municipality must be
responsive to complaints advising of a danger. To ignore such
warnings and take no corrective measures, is seen by the court
to contribute in a large measure to any subsequent injury.
These decisions put a further burden on the municipality to
ensure known dangers within its property holdings are properly
fenced, signed and/or other corrective measures taken.
To the best of staff's knowledge, the Town has always been
responsive to complaints and taken the necessary action to
correct potentially dangerous situations on our property holdings.
An example is the fencing project undertaken at Orono Yard to
prevent trespass onto the property which holds numerous dangerous
attractions for children.
As Council is aware, the Town owns property over a large area
i
with a risk exposure which possibly exceeds that of many
municipalities with a 32,000 population. Staff feel that our
parks and other recreation properties are generally free from
hazards and their use is usually supervised by the user group.
Other properties such as the Public Works Depots and gravel pits
are fenced and/or signed to discourage unlawful trespass which
might lead to an injury. in the course of their daily duties,
staff make note of any areas of particular concern and
corrective action is initiated, as necessary. This action might
involve work from road repairs to building maintenance to park
equipment repairs.
In conclusion, staff are concerned about the Town' s risk
exposure in this area and will make every effort to take any and
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all corrective measures. The actions of staff can not preclude a
legal suit against the Town, and in such a case the Town' s
current liability coverage may be insufficient.
The matter of the amount of liability insurance coverage should
be given considerable thought and discussion prior to the
renewal of the Town's insurance coverages in June.
Respectfully submitted,
KathrW A. Campbell , C.A., B.Comm.,
Tr surer
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