Ellie Ames 18 August 2023

Withdrawal of council’s insurance linked to councillor’s finances

Withdrawal of council’s insurance linked to councillor’s finances  image
Image: Barisa / Shutterstock.com.

Clevedon Town Council’s loss of insurance cover, which led to the council closing facilities earlier this week, has been linked to the financial history of one of its councillors.

On Monday, the council said it had been informed by its insurers of an issue and announced it was closing facilities including seafront tennis courts and allotments, with access ‘strictly forbidden’.

The local authority has since said it ‘sincerely regrets’ its decision to close some of its outdoor spaces but said it was advised that without cover it could have received ‘many millions of pounds’ worth of claims.

The council said that it was informed by its insurer Aviva that a councillor’s non-disclosure of county court judgements was ‘tantamount as to the reasons why the policy cover was withdrawn’.

Following representations by the National Association of Local Councils, Aviva has reinstated the council’s public liability and employment liability cover, but not its cover for public fidelity guarantee.

The council’s chairman, Cllr Trevor Morgan, said: ‘Sadly the reputation of the town council has been muddied in this regrettable incidence.

‘Part of the problem is the councillor concerned has not been excluded from serving as a councillor. He was legally elected but his business history was not acceptable to our insurers.’

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