Rising insurance rates hitting local businesses hard

By Mike Renzella

The Haldimand Press

HALDIMAND—While the government has stepped up to help businesses deal with the economic downturn created by COVID-19, many local businesses were already struggling to keep up with unexpected rises in insurance rates long before the virus became well-known.

One of the local industries hit the hardest over impending changes is the taxi industry. The Haldimand Press spoke with three locally owned and operated cab companies to see how they are dealing with the changes to their insurance rates.

“Rates are going up to the point where I might end up giving back some plates because it’s getting to be too much money,” said Bonnie Geer, owner of South Coast Haldimand Taxi.

Geer has had fleet coverage through Intact Insurance, but in order to maintain her fleet status, she must have at least five vehicles insured. “In order to get fleet insurance you need to have five vehicles. If I give up two plates that brings me down to four vehicles, which is one short,” explained Geer.

If she drops to four vehicles, she will be required to switch to facility insurance, which has more stringent rules for any driver insured under it and costs significantly more than fleet. Other local companies are already facing this reality.