Hello, I’m Kevin Millard, Client Director for Gallagher Insurance. With over 30 years of experience in the insurance industry and a deep focus on the local council and community sector since 2008, I’ve seen firsthand the vital role that risk management and insurance play in safeguarding councils.
This is the first Instalment in my four-part blog series, where I’ll expand on the topics covered in my recent webinar, Local Council Insurance: Risk and Responsibilities. In this post, we’ll explore why effective risk management is essential, outline the types of insurance coverage councils need, and discuss how proactive measures can reduce claims and protect your council from unexpected challenges.
Blog series
- Insurance Risk and Responsibilities (Part 1 of 4) - this blog
- Public Liability (Part 2 of 4)
- Employee Liability (Part 3 of 4)
- Cyber Security Insurance (Part 4 of 4)
Disclaimer:
While I have extensive experience in insurance and risk management, I am not a risk management specialist. Gallagher has a dedicated team of experts, and there are health and safety specialists across the country who can assist with your policies and risk assessments.
If you’re unsure about any aspect of your risk management or need a second opinion, I recommend consulting these professionals. They can review your documentation to ensure compliance with the latest legislation and address any overlooked areas.
Why Risk Management Matters
Risk management goes beyond avoiding legal claims—it’s about ensuring the safety, functionality, and integrity of the services councils provide. From maintaining playgrounds and organising public events to managing council buildings and car parks, every activity or asset carries potential risks. Proactively addressing these risks helps councils protect their communities, staff, volunteers, and resources.
Effective risk management also strengthens a council’s relationship with insurers. Insurers increasingly expect councils to demonstrate proactive measures to reduce risks. Without such evidence, councils may face higher premiums, rejected claims, or settlements that could otherwise have been avoided.
Types of Insurance Cover for Councils
Local council insurance policies typically include key sections that protect the public, employees, volunteers, and council members. These include:
- Public Liability Insurance: Covers claims for injury or damage sustained by third parties due to council activities or assets, such as events or playgrounds.
- Employer’s Liability Insurance: Protects council employees, volunteers, and others working under council control from workplace-related injuries or illnesses.
- Hirer’s Indemnity: Extends liability coverage to third parties renting council-owned spaces, ensuring they’re protected during their activities.
- Officials’ Indemnity: Shields councillors and officials from personal liability for claims arising from their decisions or actions.
- Key Person Insurance: Offers financial support when a vital council employee is unable to work, covering the costs of hiring temporary staff.
- Personal Accident Insurance: Provides financial assistance to individuals injured while volunteering or working on council activities, even if no one is at fault.
- Fidelity Guarantee: Protects against losses caused by employee dishonesty, such as theft or fraud.
- Libel and Slander Coverage: Covers claims resulting from defamatory statements made by council officials.
- Cyber Insurance: A growing necessity in today’s digital landscape, protecting against data breaches, ransomware attacks, and other cyber threats
These policies protect not only the council but also its staff, volunteers, and the public from financial and legal repercussions.
The Risk Management Process
At the heart of risk management is a systematic process for evaluating potential hazards and implementing safeguards. The key steps are:
- Identify Hazards: Anything that could cause harm, such as uneven pavements, unsafe equipment, or cyber vulnerabilities.
- Determine Who Might Be Harmed: This includes council employees, volunteers, visitors, contractors, and members of the public.
- Evaluate Risks and Implement Precautions: Assess the likelihood of harm and take appropriate measures to reduce risks.
- Record Findings and Implement Solutions: Keep detailed records of hazards and actions taken, ensuring these are accessible and up-to-date.
- Review and Update Regularly: A risk assessment is a working document that must be updated as circumstances change or new risks emerge.
The Importance of Documentation
In the event of a claim, insurers require evidence of the council’s risk management practices. Key documents include:
- Risk Assessments: Prove hazards were identified and steps were taken to mitigate them.
- Safe Systems of Work: Demonstrate that policies were implemented and followed.
- Maintenance and Inspection Records: Highlight routine checks and repairs.
Without this documentation, insurers may be unable to defend claims, potentially leading to settlements or higher premiums. Retain past versions of risk assessments and safe systems in archived formats (such as PDFs) to ensure credibility and compliance.
Evaluating Hazards and Risks
Councils face a range of hazards, including:
- Mechanical: Machinery, vehicles, tools.
- Physical: Lifting, awkward postures, slips and trips.
- Chemical: Exposure to dust, paints, or other substances.
- Environmental: Weather-related risks such as heat, cold, or flooding.
- Biological: Disease transmission risks like COVID-19.
- Organizational: Workload stress, bullying, or mental health challenges.
By evaluating how likely these hazards are to cause harm, councils can prioritize their response and decide whether further action is required.
Reviewing Insurance and Assets
Risk management includes reviewing insurance coverage to ensure it aligns with council assets and activities. This involves:
- Updating Asset Registers: Reflect the replacement costs of all assets and ensure they are adequately insured.
- Conducting Building Valuations: Regular reinsurance valuations avoid underinsurance, particularly in times of fluctuating market conditions.
Underinsurance is a common issue. Councils must ensure their insurance schedules match the actual values of their buildings and assets to avoid shortfalls in the event of a claim.
Conclusion
Risk management is an ongoing responsibility that requires vigilance, proactive measures, and detailed documentation. By maintaining up-to-date risk assessments, councils can protect their staff, volunteers, and communities while minimizing the likelihood and cost of claims.
In Part 2 of this series, we’ll focus on Public Liability for Parish and Town Councils, exploring the risks associated with play areas, events, buildings, and car parks. Stay tuned!
Need a Hand? I’m Here to Help!
I know this can all feel a bit overwhelming, but don’t worry—that’s what I’m here for. Whether you’re unsure about your council’s insurance needs, need advice on risk assessments, or just want to chat about how to protect your community, I’m happy to help.
📞 Call: Kevin J Millard Cert CII – 07458 124847
📧 Email: Kevin_millard@ajg.com
Drop me a message or give me a call—let’s make it simple together!
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