Decision Maker: Cabinet Member - Finance and Corporate Resources
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To request approval from the Cabinet Member
for Finance and Green for the renewal of an Environmental Liability
policy to provide cover for risks associated with the transfer of
the First Choice Homes Oldham (FCHO) housing stock in 2011.
RESOLVED - That: The approval of the renewal
of the Environmental Insurance Policy. This insurance will help
minimise the risk following the housing stock transfer in 2011 and
the 30 year warranties which were agreed.
Option 1 - to pay the premium for the renewal
of the insurance premium of £220k plus IPT to obtain a
further 10 years cover for the Environmental Liability following
the stock transfer. This is the preferred option
Option 2 - do nothing. To do nothing would mean that that the
policy will lapse, and should an Environmental incident occur the
Council would have to fund any liabilities up to a maximum of
£70m, but at a more likely liability of £15.8m.
Option 2
Other reasons / organisations consulted
Councils insurance brokers – AJ
Gallagher who have confirmed that other authorities are renewing
this type of policy for their residual housing stock
liabilities.
Contact: Anne Ryans, Director of Finance Email: anne.ryans@oldham.gov.uk.
Publication date: 13/04/2021
Date of decision: 03/02/2021
Accompanying Documents: