Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: October 23, 2025

Purpose: This report seeks Cabinet approval to procure insurance contracts to cover all the Council’s operations for the next three years, with the option to extend for a further two years.    This procurement will enable the Council to comply with relevant statutory obligations as well as demonstrate responsible risk management practice.

Content: For the reasons set out in this report and its appendices, Cabinet RESOLVED to Agree to:   i)  Approve the commencement of the procurement for municipal insurance cover through the Yorkshire Purchasing Organisation’s (YPO) Insurance Placement Dynamic Purchasing System (DPS) 01198 for a contract with an initial term of 3 years, effective 1 April 2026, with an option to extend for 2 years at the estimated value of £2.7m per annum. ii)  Delegate to the Corporate Director of Resources in consultation with the Cabinet Member for Finance and Resources, to award the contracts arising from the tender process to the most advantageous bidders for the various lots.   Alternatives considered   a)  Wholesale Self Insurance – This is clearly not a viable option because there are insurance policies we are required to have in place by law. Confining ourselves to the compulsory classes is also not advisable, given that the unexpected can occur such as matters arising from tragedies of Grenfell. b)  100% Risk Transfer – Potentially all insurance companies writing local authority business will decline to offer cover on this basis. The simple reason is that there is then no incentive on the part of the Council to manage risk. c)  Reduction in General Property cover to Fire, Lightning, Explosion, Earthquake (FLEE) – Whilst this will secure a reduction in premium, it is too restrictive a level of cover. It is currently mainly used by the market for unoccupied properties and may send the wrong signal to underwriters. Also, this approach would not be favourable to our education and housing portfolios.