APPENDIX 2

 

Principle ‘uninsured’ risks

 

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.

 

Wet Perils

 

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/Malicious damage

 

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. 

 

Computers

 

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’.

 

Cliff fall/Landslip

 

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.

 

Self Insurance

 

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.