The Director of Resources submitted a report seeking authority to award contracts for insurance for the Council’s Liability, Motor Fleet and Property insurance arrangements, following a competitive tendering exercise.

The report explained that the Council’s current insurance contracts were due to expire on 31 March 2019, and that in order that the Council could mitigate its potential financial and legal liabilities and transfer some of its potential claims exposure, there was a need to tender for a new contract.  The Council operated an insurance programme that balanced self-retained risk with external insurance policy protection which was reviewed at each annual renewal.  Based on the current financial climate, the availability and pricing of insurance, and the risk appetite of the Council it was recommended to continue with this balanced option.  Due to the value of the contract the tender would be advertised in the Official Journal of the European Union (OJEU) under the Public Contracts Regulations 2015, and approval was sought to award the contract to the winning tenderer.  It was recommended that the contract(s) be let on a five year basis with the option to extend for a further two years.

The report stated that on the advice of the Council’s Insurance Brokers the new Children’s Company would be included in the tender process and be covered under the Council’s insurance arrangements as a ‘Joint Insured’ entity, as the easiest and most cost-efficient solution.  Premium charges and funding for self-retained risk would be recharged to the Company.

Resolved –

(1)     That an open tender procedure under OJEU regulations be carried out with a view to the resultant insurance contract(s) being in place by 1 April 2019, allowing for an element of both self-insurance and cover by an external insurance policy;

(2)     That the Section 151 Officer, in consultation with the Lead Councillor for Corporate and Consumer Services and the Head of Legal & Democratic Services, be authorised to make relevant decisions regarding policy cover and levels of deductibles, and to award the contract at the end of the tender process to the winning tenderer/s;

(3)     That the tender include insurance cover for the new Children’s Company ‘Brighter Futures for Children’.