Image: Supplied by Cultus Lake Park Board / Not only did the Cultus Lake Park Board see its insurance premiums increase by over 50 per cent this coming year, very few insurance providers were willing to cover the public agency.

By Mike Vanden Bosch

Cultus Lake

Cultus Lake Park Board sees insurance premiums skyrocket, few companies offer insurance

Jul 21, 2022 | 6:41 AM

CHILLIWACK — Imagine receiving a more than 50 per cent increase on your property insurance bill and then finding out that almost no company wants to insure you.

That’s what Cultus Lake Park Board commissioners learned the hard way this week.

Chief financial officer Erica Lee told park board commissioners at its monthly meeting Wednesday night that its premium for the coming 2022-23 fiscal year will cost $311,003, a steep increase of 57 per cent from an insurance expense of $197,105 covering the 2021-22 fiscal year.

Lee advised the park board that only three insurance providers out of 40 offered insurance to the government agency through Aon, an insurance broker.

Assets under the park’s jurisdiction increased year over year from $26.6 million to $30.2 million, but Lee told the board insurance premiums rose due to capacity constraints from within the industry and claim payouts from the past year.

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“Insurance was difficult to obtain,” Lee said.

Northbridge will bear the majority, or 75 percent, of the insurance coverage spread among three insurers.

When the question of self-insurance came up, Lee advised the board the issue had been talked about, but the only governmental agency she knew that self-insured was the B.C. government itself. Lee added that self-insuring came with a high degree of risk.

Due to higher than anticipated premiums, Lee indicated there would be an insurance services budget shortfall, though a portion of this deficit could be absorbed into the budgeted surplus for 2022. She told commissioners the five-year budget will be updated for future years to accommodate the insurance increase and take into consideration the current insurance market increases.

In other matters of business, the board appointed election officers for the upcoming fall election to include several corporate and administrative staff from the park board. They will assist with the election process as additional support or to back fill in case of staff illnesses.

Application packages for prospective park board candidates become available on July 25. The nomination period runs from August 30 through September 9. Advance voting is October 5, followed by voting day on October 15.

Cultus Lake Park Board commissioners earn $1,243.30 per month plus a $100 per month stipend to cover communications expenses. The chair and vice-chair earn more due to additional board responsibilities.