What you need

These resources guide you through the steps to plan, agree and run your Local Management Agreement.

Insurance

Residents and contractors providing services under Local Management Agreements must insure against key risks:

Public liability Against personal loss, damage or injury arising from the service (for example, a resident slipping on stairs that are wet after cleaning).

Contents Against theft, damage and loss of equipment and materials (for example, a lawnmower being stolen from its store).

Employer’s liability Against claims for injury, unfair dismissal or treatment and actions by employees (for example, a contractor’s member of staff seriously injuring themselves and being unable to work).

Trustee’s indemnity Against damages and legal expenses arising from any wrongful act, error or omission when acting as a trustee to an association responsible for a Local Management Agreement (for example, if trustees are sued over performance of their duties). You can also insure against errors and omissions, which would cover risks arising from service failures.

Fidelity Against fraud and theft of money connected with the service (for example, the person responsible for keeping financial records falsifying invoices or colluding with a contractor).

Indemnity
Residents or residents’ groups who take over responsibility for services must also handle any claims connected with those services – hence the need for insurance.

As part of the Local Management Agreement, the Council is indemnified (protected) from any claims to do with the service, unless they are caused by the Council being negligent.

In return, the Council may offer full or partial indemnity to trustees responsible for Local Management Agreements, to protect them from unlimited legal liability. See ‘Who’s in charge’

How to arrange cover
Depending on the details of the agreement, some risks may be covered by the Council’s existing insurance policies. If not, the Council can help residents find and arrange other comprehensive, good value insurance.

To find suitable local insurers and brokers in your area, contact:

• British Insurance Brokers Association on 020 7623 9043 or www.biba.org.uk

Or try

• www.find.co.uk - an online index of insurance firms.

For general advice about shopping around for insurance, see the Financial Services Authority’s Consumer Help section at www.fsa.gov.uk