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

Local government continues to work hard across the country supporting its communities, delivering essential services and working with central government to implement the measures put in place to help businesses survive.

LGM has been preparing for the admission of the first group of authorities to join the mutual, and has updated its engagement strategy and business platforms to take into account the impact of Covid-19.

We are aware that, in response to the pandemic, many authorities are planning to develop their risk management activity and also to review the level of risk they retain, in order to off-set anticipated insurance premium increases.

As we gear up our activity over the coming weeks, we will be in touch with those councils that have already asked to talk to us about the LGM option. We would be very happy to add your council to that list!

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 the risks it brings to the mutual – 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, fine art and regalia, computers, all risks, business interruption, money, contract works, terrorism.


Employers’ liability, public and products liability, libel and slander, medical malpractice, cyber.

Management Liability

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


Plant and machinery, engineering inspection.


Motor fleets - cars, vans, refuse collection, occasional business use.

Personal accident and travel

Group personal accident, business travel.

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