Jen asked:
Is there a UK law compelling all local authorities to have public liability insurance or do they just have a contingency (or centrally held) fund to cover any claims?
Is there a UK law compelling all local authorities to have public liability insurance or do they just have a contingency (or centrally held) fund to cover any claims?
I can’t find information on this anywhere, only on LAs’ requirement for subcontractors to have PL insurance.
Link to any relevant legislation would be much appreciated.
I need direction to legislation here. I am looking into possibility of my local authority commiting a criminal offence/invalidating public liability insurance if they make a financial/policy decision not to maintain grass verges which is causing accidents.
Have waded Local Government Act – no luck. Really need an accurate citation.
Yes they do. It would be foolish not too.
All companies including local authorities have to have public liability insurance.
They don’t have to have it. They can self insure, I know one that does just that. It is always possible that legislation has been brought in very recently.
No.
It would be really foolish for a government agency to buy liability insurance. In the long run, insurance buyers always pay out, on average, more in premiums than they receive in benefits – that’s how insurers make money.
For you or I, for whom a single large settlement could break us, that difference is what we pay for peace of mind. To a government agency, though, it’s pointless. They can ALWAYS afford to pay a settlement.
Richard
Yes they have to have public liability insurance under the Local Government Act.