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Insurance Contracts Renewals

Meeting: 20/06/2018 - Executive (Item 10)

Insurance Contract Award

Report of Officers.


Additional documents:


Decision that:


1.     the award of the insurance contracts, as set out in report paragraph 5.3, be approved;


2.     the saving against the current insurance contracts of £50k per annum be noted and that this saving will be factored into the revenue budget from 2019/20;


3.     it be approved that, as a result of the contract savings, any underspend against the insurance budget in 2018/19 be set aside in the uninsured losses reserve to provide for any potential future claims not covered by these or previous insurance policies;


4.     authority be delegated to the Deputy Section 151 Officer, in consultation with the Portfolio Holder for Finance and Property, to negotiate and extend Lot 7 (Elstree Film Studios) for a further two years subject to acceptable contract performance and agreeable renewal terms; and  


5.     authority be delegated to the Corporate Director, in consultation with the Portfolio Holder for Finance and Property, to annually award the contracts for Lot 3 and Lot 4 subject to a compliant tender process. 


Reasons for the Decision


The Council had a number of insurance policies in place including Employers and Public liability cover as well as insurance to protect its assets (property and fleet).  As all of these policies were due to expire at the end of July 2018, a full procurement process had been undertaken, in compliance with the Council’s contract procedure rules, to ensure that cover was continuous and the contract awards were approved accordingly.


Alternative Options Considered and Rejected


Whilst Employer liability insurance was compulsory, the decision could have been taken for the Council to ‘self insure’ some or all of its assets.  However, it was considered that this would pose an unacceptable level of risk to the Council given the total value insured by the contracts and the potential for substantial public liability claims.  This option was therefore not supported.


(Action:  Treasury Manager)