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

Fourteen councils, along with the Local Government Association (LGA), have joined together to launch the Local Government Mutual. Working together, the Mutual aims to reduce the numbers and costs of claims and jointly procure insurance to protect our members. We aim to provide a cost-effective alternative to traditional insurance and we are owned and controlled by local authorities themselves.

By local government, for local government.

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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.

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