A decision made last December to tender the city's insurance policies before renewal has paid off.
Sarnia council accepted a $1.9 million proposal from Marsh Canada Limited on Monday, which was significantly lower than the estimated $2.78 million cost.
Councillor Bill Dennis celebrated the $800,000 in savings.
"I also further commend staff for their recommendation to change the deductible, which contributed to $200,000 of these significant savings," said Dennis.
The deductible, of general municipal liability and property liability, will increase to $100,000.
Treasurer Holly Reynolds confirmed the lower amount has already been reflected in the 2022 draft budget.
Corporate Services Director David Logan said claims processed against the city were reviewed before the recommendation was made.
"We are confident that those savings are savings that will be realized," Logan said.
But, councillor Terry Burrell wasn't convinced, and questioned the greater overall liability from paying more on smaller claims.
"When you squeeze a balloon, the other end of the balloon pops out," he said. "So, if we've increased our deductible from $50,000 to $100,000, with a $90,000 claim, we would pay the whole $90,000."
The submission didn't include a firm rate for cyber liability.
Logan said cyber liability insurance coverages are more challenging to secure with the current market.
"Obviously, it's a troubling area for insurance and liability, both with respect to public sector and private sector employers," Logan said. "I'm happy to come back with more information, but it is a very difficult area with many organizations, including the county, that have had some significant cyber breaches."
Logan said the city has invested significantly in information technology services this year.
"We believe that we've positioned ourselves to be as protected as possible," he said.
Sarnia council has asked that cyber liability and deductible impacts be highlighted in future reports.