Zurich Municipal has launched a new insurance product designed to support England’s largest programme of local government reorganisation in more than 50 years, as over 200 councils prepare to be abolished or merged.

The insurer has developed Shadow Authority Insurance for newly-formed shadow authorities, which are overseeing the transition to unitary councils. The changes will involve transferring services, contracts, assets and staff within tight timescales.

These bodies will be legally distinct and responsible for ensuring new authorities can assume full duties from day one. While drawing on existing council resources, shadow authorities require separate cover for their own operations.

Cover includes property protection for office equipment, business interruption up to £100,000, employers’ and public liability up to £10m, officials’ indemnity up to £1m, and libel and slander up to £500,000.

Gordon Wilmott, head of public services at Zurich Municipal, said: "These are unprecedented times for many local authorities, preparing for major transformation while continuing to fulfil their vital role delivering essential services to their communities. Having spotted the need for a new product to underpin the difficult work of the shadow authorities we have stepped forward to fill the gap. We know this is just the beginning of supporting our public sector partners through the coming months."

The product has already been taken up by two shadow authorities in Surrey, where reorganisation is due to take effect on 1 April 2027. Elsewhere, new councils are expected to go live on 1 April 2028.

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