Zurich Municipal launches insurance for England’s shadow authorities

Zurich Municipal has launched an insurance product for the temporary bodies overseeing England’s local government reorganization.

More than 200 local authorities are expected to be abolished or merged, requiring services, contracts, assets and employees to be transferred to newly formed unitary councils. Preparations will be managed by shadow authorities, which are legally separate from the existing councils and therefore require their own insurance.

Zurich’s Shadow Authority Insurance includes property, business interruption, employers’ liability, public liability, officials’ indemnity, and libel and slander coverage. Available limits include £10 million for employers’ and public liability, £1 million for officials’ indemnity and £500,000 for libel and slander.

The product has already been adopted by two shadow authorities established in Surrey, where the new councils are scheduled to become operational on April 1, 2027. Other reorganized councils are expected to launch one year later.

The coverage is based on Zurich Select, a policy currently used by county, district and borough councils, and is issued for a 12-month period.

“These are unprecedented times for many local authorities, preparing for major transformation while continuing to fulfil their vital role delivering essential services to their communities.” – Gordon Wilmott, head of public services at Zurich Municipal.