There
are several areas where the Council bears risk in house either by choice or in
the majority of cases because no cover is available to purchase. Where cover is available to purchase the
cost may outweigh the risk.
Deductibles
(excesses)
Several
policies have relatively high excesses in order to keep premiums at a
sustainable level or because there is simply no ‘ground up’ cover available in
the insurance market. The need for good
risk management is therefore paramount.
The
Council is insured for the main perils on its buildings policy but is not
insured for storm, flood or escape of water.
The Insurance & Risk management Office continue to explore options
however our insurers have stipulated that cover is not purchasable unless the
Council has a recording and monitoring system to capture all instances of
damage due to wet perils.
Theft
from Council buildings is an exclusion on the buildings policy and incidents of
malicious damage are remedied by the Property Services department on a day to
day basis via school or departmental budgets.
Contents
in Council buildings are insured only if lost due to one of the insured perils
e.g. fire. Servers are covered by ‘self insurance’ (see below) but general
office computers and associated equipment are uninsured (unless the loss occurs
due to one of the insured perils as above).
Quotations are currently being sought for a range of options to provide
‘all risks’ cover for some or all computer equipment, lap tops etc., including
in particular the contents of the ‘server farm’.
Costs
arising from cliff fall or landslip e.g. repairs to the road infrastructure,
remedial coastal protection works, damage from flooding, property damage,
traffic problems etc. are uninsured and cover cannot be purchased.
Because
of the lack of ‘contents’ insurance, departments wishing to insure items of
high value or desirability can do so through the Insurance & Risk Office in
return for an annual premium. The cover
is on an all risks basis and typically provides insurance for lap tops,
cameras, specialist equipment, weather stations, civic regalia, surveying equipment,
servers, vending machines and a host of other specific items.