Local Authority Contract Insurance Requirements

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Specialist support for domiciliary care providers needing to meet local authority and NHS framework insurance requirements – from liability limits to medical malpractice and evidence of cover.

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We place cover with insurers familiar with local authority contracts

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

INSURANCE SUPPORT FOR LOCAL AUTHORITY & NHS DOMICILIARY CARE CONTRACTS

Turn complex contract insurance conditions into clear, achievable requirements

Local authority and NHS contracts often contain detailed insurance clauses that can be confusing or difficult to interpret. Insure24 helps domiciliary care providers understand what’s actually required, identify any gaps and structure cover that satisfies commissioners while remaining practical and affordable for your service.

Why local authority insurance requirements matter

Winning and retaining local authority contracts is a lifeline for many domiciliary care providers. Insurance is often a gateway requirement – without the right limits and covers in place, providers may struggle to join a framework, sign a contract or pass a compliance review.

  • Pre-condition of award: Many frameworks require evidence of insurance before contracts can go live.
  • Minimum limits: Public liability, employers’ liability and professional/clinical cover are often specified at set limits.
  • Contractual risk: Failure to meet or maintain required covers can breach contract terms.
  • Variation across authorities: Each local authority may set different minimum standards.
  • Evidence & timing: Certificates and schedules are usually needed within tight tender or mobilisation timelines.
  • Future growth: Limits may need to increase as your contract volume or complexity grows.

Our role is to bridge the gap between contract wording, insurer expectations and real-world domiciliary care practice, ensuring you have clarity and confidence when dealing with procurement and commissioning teams.

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What insurance covers do local authorities typically ask for?

Requirements vary, but there are clear patterns across domiciliary care contracts. We can help you interpret wording such as “professional indemnity”, “clinical negligence” or “medical malpractice” and match it to the right policies and limits.

Core liability covers

  • Public liability – typically £5m or £10m limit of indemnity.
  • Employers’ liability – usually £10m limit, as required by law.
  • Professional indemnity / medical malpractice for care activities.
  • Management liability / trustees’ liability for some providers.
  • Property & business interruption where premises are used.
  • Commercial legal expenses (sometimes recommended).

Additional covers often requested

  • Cyber & data liability where digital care records are used.
  • Medical malpractice for delegated healthcare tasks.
  • Abuse / safeguarding extensions (subject to insurer appetite).
  • Drive other car / non-owned vehicle use, where applicable.
  • Higher excesses or deductibles agreed with commissioners.
  • Specific endorsements to match framework wording.
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Which providers and contracts does this apply to?

Local authority insurance clauses affect a wide range of community-based providers, not only large regional agencies.

Types of domiciliary care providers

  • CQC-registered domiciliary care agencies of all sizes.
  • Specialist complex care and continuing healthcare providers.
  • Live-in care companies.
  • Supported living and outreach services commissioned by councils.
  • Charities and not-for-profit community care organisations.
  • Regional and national care groups expanding into new areas.

Contract & framework settings

  • Local authority home care frameworks and dynamic purchasing systems.
  • Block and spot contracts for domiciliary care and reablement.
  • NHS-funded packages delivered in the community.
  • Joint commissioning arrangements with ICBs and local authorities.
  • Cross-border contracts where requirements differ by authority.
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Common issues we see with local authority insurance clauses

We regularly help providers resolve mismatches between their existing insurance and the wording in tenders or contracts.

Coverage & limit gaps

  • Public liability limit below that specified in the framework.
  • Professional indemnity or malpractice omitted or too low.
  • Abuse cover requested but not clearly addressed in the wording.
  • Cyber and data risks highlighted but no cyber policy in place.
  • Multiple entities trading under one policy without clarity.

Documentation & interpretation issues

  • Tender documents using non-standard insurance terminology.
  • Framework limits expressed “any one claim” vs “aggregate”.
  • Lack of clear proof of cover tailored to the contract.
  • Uncertainty over whether individual carers need separate cover.
  • Delayed mobilisation due to late confirmation of insurance.
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How Insure24 supports you with local authority contracts

We are an insurance broker, not a legal firm – but we understand how care contracts, frameworks and insurance clauses interact. Our focus is to help you put robust, defensible cover in place and explain it clearly to commissioners.

Sector-aware broking & placement

  • Experience working with domiciliary and community care providers.
  • Understanding of typical council and NHS insurance clauses.
  • Ability to discuss requirements with underwriters on your behalf.
  • Placement of packages combining liability, malpractice and other covers.
  • Adjusting limits and endorsements as your contracts evolve.

Documentation & communication support

  • Clear insurance summaries you can upload with tenders.
  • Help answering insurance-related clarification questions.
  • Fast turnaround on certificates and policy schedules.
  • Support when commissioners ask for confirmation from your broker.
  • Annual reviews timed to fit around key contract dates.
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What we’ll ask when helping with local authority contract insurance

To advise properly and present your risk to insurers, we’ll need a clear picture of your service and the specific contracts you’re working on.

Your operations & contracts

  • Copy of relevant contract or framework insurance clauses.
  • Number of care hours and projected contract value.
  • Client groups supported and complexity of care.
  • Areas you operate in and which authorities commission you.
  • Existing insurance arrangements and renewal dates.

Governance, history & timescales

  • CQC registration details and most recent rating (where applicable).
  • Any previous or ongoing claims relevant to liability or malpractice.
  • Key deadlines for tender submission or contract mobilisation.
  • Preferred limit structure and budget considerations.
  • Any specific questions commissioners have already raised.
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Insure24 helped us interpret three different local authority insurance schedules and align our cover so that all commissioners were satisfied. Their support around documentation and timings made the mobilisation process much smoother.

Director, Domiciliary Care Provider with Multiple LA Contracts

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TAILORED FOR LOCAL AUTHORITY CONTRACTS 

DESIGNED AROUND COMMISSIONER EXPECTATIONS

  • Insurance structures that reflect the real risks of community care.
  • Limit options aligned with common framework requirements.
  • Support in explaining your cover to procurement and quality teams.
  • Flexibility to adapt as frameworks are renewed or extended.
  • A broker who understands both insurance and the care sector.
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Linking insurance, CQC compliance & local authority oversight

For high-intent visitors, insurance is part of a wider picture including CQC standards, clinical governance and contractual oversight. We help you position your insurance as a strength rather than an administrative hurdle.

  • Understanding how insurance fits within “safe” and “well-led” domains.
  • Aligning risk management with both regulators and commissioners.
  • Preparing concise insurance summaries for quality & contract reviews.
  • Helping you evidence lessons learned from incidents and claims.
  • Ensuring insurance renewals are timed to avoid contract disruption.
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FREQUENTLY ASKED QUESTIONS – LOCAL AUTHORITY CONTRACT INSURANCE

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What insurance limits do local authorities usually require for domiciliary care?

Requirements vary, but many councils request public liability of £5m or £10m, employers’ liability of £10m, and professional indemnity or medical malpractice at limits typically between £1m and £5m. We can review your specific tender or contract and confirm what’s needed.

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Do all domiciliary care providers need the same level of cover?

Not always. Requirements can differ by authority, client group and contract size. Some frameworks set higher limits for complex care or large contracts. We can help you build an insurance programme that meets the highest requirements you face, without over-insuring.

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Can Insure24 help if we have contracts with several different local authorities?

Yes. We regularly support providers working across multiple councils and ICBs. We can review all your insurance clauses together and design a single insurance programme that satisfies the strictest requirements while remaining efficient and manageable.

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What if our existing insurance wording doesn’t match the contract language?

This is common. We can look at both documents, speak to the insurer if necessary, and either confirm that your policy already satisfies the intent or arrange adjustments or alternative cover where needed. We can also help you explain this to the commissioner.

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How early should we speak to you before a tender or framework deadline?

The earlier the better – ideally as soon as you see the draft insurance clauses. This gives time to gather information, adjust limits if required, and obtain any underwriter sign-off before you submit your tender or start mobilisation.

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What evidence of insurance will we need to provide to the council?

Most commissioners ask for a certificate of insurance and sometimes the policy schedule showing limits and key covers. We can also prepare broker letters summarising your cover specifically against the contract requirements, where appropriate.

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Will changing our limits or adding malpractice significantly increase our premium?

It depends on your risk profile and claims history, but increases in limit do not always mean dramatic cost rises. We will obtain quotes, explain the options and help you weigh the additional premium against the value of the contract and the protection provided.

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Can you help if a commissioner asks to speak directly to our broker?

Yes. With your permission, we can speak to commissioners or procurement teams to clarify how your cover meets their requirements and answer technical insurance questions on your behalf.

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What happens if contract requirements change mid-term?

If a framework or contract is updated, we can review the new clauses and discuss any adjustments with your insurer. Mid-term endorsements can often be arranged to keep your insurance aligned without waiting for renewal.

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How do we get help with local authority contract insurance today?

Call Insure24 on 0330 127 2333 or send us your contract insurance clauses via our enquiry form. We’ll review your current cover, highlight any gaps, and work with insurers to put the right protections in place for your domiciliary care contracts.

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