Crawley Borough Council has become one of the founding members of the Local Government Mutual, helping to save money every year.
The mutual aims to save its members money by offering an effective alternative to the conventional insurance products and services available to local authorities.
Any surpluses the mutual generates may be used to reduce the cost of insurance, improve the claims process or returned back to members as income.
The structure of the mutual means the council will not pay insurance premium tax, currently set at 12 per cent, on the vast majority of insurance products.
As well as saving money, the mutual puts councils in control by working together, sharing knowledge of best practice and reducing members’ risk exposure without increased costs.
Leader of the Council, Councillor Peter Lamb, said: “It’s great to see Crawley Borough Council become a founding member of this initiative. The mutual is another way the council is saving money to put back into services and to reduce the forecasted budget gap.”
As a member, the council can still choose between the mutual and private companies for its insurance. However, the mutual can offer price matching or better cover that is up-to-date with changes in local authorities’ organisational and operational activities.
The council can insure through the mutual from 1 April 2020.
Find out more about the Local Government Mutual here: http://www.local.gov.uk/new-local-government-mutual