The Local Government Mutual: an alternative to traditional local government insurance

Local government is working flat out across the country supporting its communities, delivering essential services and working with central government to implement the emergency measures put in place to help businesses survive.

Understandably, it isn’t easy for them to devote time to appraising options for their risk transfer arrangements at this time.

LGM continues to prepare for the admission of the first group of authorities to join the mutual, and is actively updating its engagement strategy and business platforms to take into account the impact of Covid-19 on the sector.

We remain open for business and available to speak to any of you, and we will be in touch with those of you who have asked us to talk to you about the LGM option in the coming months.

By local government, for local government.

Our ProductsBook an appointment

Sign up for a business case review today.

What is the Local Government Mutual?

The Local Government Mutual is an alternative to insurance products and services for local authorities.

Member control

Owned and controlled by its local authority members.

Cost Savings

Aims to reduce local authorities’ costs of risk. Any surpluses achieved, which are available for distribution, are used for the benefit of the members or as members agree.


Based on a robust financial model. Mutuals have been around for hundreds of years.


Bringing clarity through shared risk management and collective claims history.

What is a Mutual?

A mutual is a company owned by its members – its customers. It acts for the benefit of its members at all times. Members pay contributions into the mutual fund based upon the risks they bring. Contributions are used to pay the expected (predictable) claims, to purchase the insurance which protects the mutual and its members against the unexpected claims and to meet the costs of operating the mutual. Any surplus belongs to the members and must be used for their benefit or as the members may agree.

What does the Mutual do?

The Mutual provides financial protection for its members against risk by pooling its contribution income to cover the cost of low level, expected losses. The more members the mutual has, the more risk will be able to be retained and covered directly by contributions. Each member’s contribution is based on its own claims experience – the mutual doesn’t cross-subsidise between authorities.

Working together to:
  • Manage the risks
  • Control our costs
  • Protect our assets
  • Improve claims handling

What does the Local Government Mutual provide?


Buildings and contents, business interruption, money, terrorism.


Public liability, libel and slander, medical malpratice and crisis management.

Management Liability

Directors and officers, crime, professional and official's indemnity, pension trustee liability.


Computer, machinery movement, engineering inspection, deteroriation of stock, machinery loss of profits, machinery sudden and foreseen damage.


Cars, vans, mowers, refuse collection, occasional business use.


Contract works, site materials.

Sign up for a consultation today.