Avon council approves 2026 insurance renewal after premium spike

The Avon Town Council on Nov. 20 approved the town’s 2026 insurance renewal after staff warned the municipal market had pushed property and casualty premiums sharply higher.

Town staff told council members the town’s overall renewal was roughly a 25% increase driven largely by property and casualty coverages, while workers’ compensation costs fell by nearly $30,000. Staff said payroll increased about 12% year over year and that cyber insurance remained flat. The council was told the 2026 budget includes $475,000 for premiums; staff said available 2025 savings should allow the town to pay the premium before year-end but left the town “probably pretty tight next year.”

Unidentified staff said several options were explored to reduce costs, including raising deductibles; staff reported that increasing deductibles did not yield a substantial premium reduction and would raise the town’s out-of-pocket exposure. Staff also said they were working with their broker on loss-management changes that could limit claim filings below a defined threshold to avoid increasing future premiums.

Council discussion also flagged dam coverage concerns after an insurer declined to insure the town’s dam citing the lack of an emergency action plan. Staff said they would seek clarification from the insurer and work with engineers to determine whether the town needs a formal plan or an internal continuity plan and aimed to report back within roughly six months.

Council member motion to approve the renewal passed on roll call.