Cyber crime becoming hot topic for insurance companies, Council hears

Craig Bakay | Feb 08, 2022

Addington Highlands insurance premium went up 19.34 per cent for 2022 over 2021 or to $109,424 from $93,328, Mike Airhart of McDougall insurance told Council at its regular (online) meeting Feb. 1.

“In a round about way, it did go up a little bit this year from last year but it’s not as substantial as some of the other municipalities I’m hearing from,” Airhart said. “But the one thing I really did want to emphasize is cyber coverage.

“Five or six years ago, we first started talking about cyber coverage but it’s become a much hotter topic — claims have been happening at a much higher frequency and a lot of companies have dropped out.”

He said claims have more than doubled — 300 to 400 percent.

“I’m sure you’re aware that one of the other local municipalities was breached and it was a significant loss they had,” he said. “Newfoundland’s complete healthcare system was shut down.”

Another reason Reeve Henry Hogg wanted Airhart to come to Council was to talk about joint and several judgements.

“Joint and several is still a hot topic,” Airhart said. “Say there’s a judgement for a million dollars and the municipality was found 1 per cent responsible.

“If the municipality was found even 1 per cent responsible, they could be on the hook — and in most cases they will be on the hook — for the entire judgement so that would mean you could be found 1 per cent responsible but have to pay 100 per cent of the judgement.”

He said there are companies lobbying to get that removed such that if you’re 10 per cent responsible, then you pay 10 per cent of the judgement.

“It’s put you guys behind the 8-Ball because you could do almost everything right but lose for an entire judgement,” Airhart said.

“I made a presentation to the government as a member of the Eastern Ontario Wardens Caucus in 2010 and they said they were expecting something shortly,” Hogg said. “Twelve years is not shortly.”

“That’s probably why we’re looking at losing carriers,” Airhart said.

“Are there things we could be doing to lower our risk?” said Dep. Reeve Tony Fritsch.

“Document, document and document,” Airhart said. “And then document some more.”

Community Safety Plan

Council passed a motion to support Pat Finnegan’s existing Community Safety and Well-Being Plan which is part of the Lennox & Addington Community Risk Watch and still has $1,800 owing.

“I’m going to work with you for two years on community safety,” said Finnegan.

Library Board

Council noted there are vacancies on the Library Boar for both Ward 1 and Ward 2. The Ward 1 position had been advertised but no response. The Ward 2 position is a new resignation. Both positions will be advertised in The Frontenac News.

Emergency Fees

A proposal for charge backs and fees for service when the joint fire department attends motor vehicle accidents was deferred for a later meeting.

Building Report

CBO David Twiddy reported that final numbers for 2021 include $6.7 million in building permit value with 138 permits issued along with 52 septic permits.

“Ontario in general has been a boom town for housing starts,” he said. “(But) higher interest rates along with building material costs and supply shortages may very well bring some braking to new builds.”

Alcohol at the Arena

CBO David Twiddy reported that alcohol is not permitted at the Flinton Arena after reports that ‘a lot of beer cans have been picked up.’

“Police will be making more rounds,” he said.

But Coun. Helen Yanch questioned the reports.

“There was some nonsense on FaceBook,” she said. “But I know the young lads and their dads who were skating there and they weren’t drinking.

“I wonder if it’s even happening.”

Official Plan

CAO/Clerk-Treasurer Christine Reed reported that the Official Plan will need an update to conform with the County Official Plan and Provincial Policy Statement. There will be a virtual meeting March 22 to discuss it.