Selectmen Schedule Special Town Meeting as Municipal Insurance Costs Surge-August 7, 1986

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Town selectmen learned during a meeting last night that the cost of Norwood’s municipal liability and property insurance has nearly doubled over the past year, driven by a nationwide spike in insurance rates. “Insurance rates are going crazy all over,” Town Manager John Carroll remarked. “It’s the same for most other towns our size. No one can do anything about it. Liability insurance is up everywhere.” After dropping significantly five years prior, the town’s insurance premiums have climbed steadily, jumping 43 percent from $150,000 to $215,000 between 1985 and 1986 alone. With the current fiscal budget allocating only $170,000 for insurance, selectmen officially scheduled a special town meeting for September 22 to vote on appropriating an extra $45,000 to cover the shortfall, alongside a separate $19,000 reimbursement item for airport liability coverage. Selectmen Chairman Joseph Curran emphasized that only critical warrant items should be submitted to ensure focused discussion on the insurance crisis.

To prevent premiums from escalating further, Assistant Town Manager Bernie Cooper explained that significant policy adjustments were implemented. The town’s deductible was raised drastically from $1,000 per loss to $25,000—noting that only two past town claims, in 1982 and 1984, would have exceeded that threshold. The new policy covers $46.8 million in municipal buildings and contents alongside all streets and sidewalks, while excluding full replacement coverage for historic stone-and-slate structures like the town hall, library, civic center, and old fire station due to prohibitive costs, opting instead for functional replacement terms. Additionally, general liability coverage was doubled from $500,000 to $1 million, inclusive of legal defense costs. Cooper broke down the $215,000 premium, noting that one-third ($73,000) covers buildings, contents, and crime protection, while two-thirds ($142,000) is allocated for liability. In other business, selectmen voted 3-2 to approve transferring an alcohol license from Bunny’s Cafe Inc. to the new establishment George’s Place on Washington Street, overcoming opposition from Selectmen William Butters and Chairman Curran, who cited a history of disorderly conduct at that location.

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Patriot Ledger