Decision Maker: Cabinet Member for Finance, Property and Regeneration
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Proposed contract awards for sovereign
insurance contracts for Leaseholder, Property, Combined Liability
and Directors' & Officers' Liability for contract commencement
dates of 1st April 2019
1. That Part B be exempt from disclosure by virtue of the Local Government Act 1972 Schedule 12A, Part 1, paragraph 3 (as amended), in that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information)
2. That the Cabinet Member for Finance, Property and Regeneration approved contract awards for the following insurance services for a period of 5 years:
· Leaseholder buildings insurance – Avid Insurance Services Limited - £2.497m per annum
· Property insurance – Protector Insurance - £0.459m per annum
· Combined Liability insurance – Protector Insurance - £0.387m per annum
· Directors’ & Officer’s Liability insurance – No Award
3. That the Cabinet Member for Finance, Property and Regeneration noted that:
· The annual value from the award of these contracts is £3.343m which, over 5 years, equates to £16.715m
· The contracts are subject to annual review of Council’s insurance needs, based on changes in assets, indexation of sums insured, salary spend and alterations to Council services and therefore the actual premium cost each financial year will vary although changes in underlying premium rates will constitute a contract break by the insurers
· The Council’s Procurement Assurance Board has been consulted and supports the recommendation to the Cabinet Member for the awards as set out in 2 above.
Reasons for Decision
1. In respect of the award of leasehold buildings insurance the Council needs to award a contract of insurance to comply with the Council’s legal obligations under the leasehold agreement entered into at the time of sale of the lease to the leaseholders the covenant to insure their asset and ensure the relevant portion of the Councils freehold is insured.
2. In respect of the award of Property insurance this is to provide funds to reinstate Council assets following damage by insured perils, in the absence of which the financial costs of re-instatement would place considerable or impossible financial demands upon the Council.
3. In respect of the award of Combined Liability Insurance this is to indemnify the Council against legal costs and damages arising from legal claims against the Council in Negligence, Nuisance, Libel and Slander. The absence of which would place considerable or impossible financial demands upon the Council.
4. In the absence of suitable bids via the Office Journal of the European Union (OJEU) process for Directors and Officers insurance cover will continue on an annual basis via the Lloyds Insurance Market accessed by JLT Speciality Ltd, the Councils insurance brokers and advisors.
5. The recommendation for contract award follows a robust procurement process, carried out in accordance with the Council’s Contract Regulations and Public Contract Regulations 2015 in an OJEU compliant process and on the most economically advantageous tender bid.
Publication date: 12/03/2019
Date of decision: 12/03/2019
Effective from: 20/03/2019