Nottinghamshire County Council is facing a sharp rise in public liability claims due to pothole complaints.
Citing an update presented to the Cabinet Member for Finance and Resources by the council’s risk & insurance team, West Bridgford Wire reported that more than 1,000 additional public liability claims were filed during the 2023/24 financial year compared to the previous year.
Claims related to highway issues, particularly vehicle damage from potholes, remain the most common.
It was noted that the council’s capacity to contest these claims has weakened, as evidenced by a drop in the repudiation rate. For 2023/24, the repudiation rate fell to 73%, down from 87% in the previous year.
According to The Wire, the decline suggests that a greater number of claims are being settled, implying that the council’s defence is not as effective as it once was.
The surge in claims has also directly impacted the council’s insurance costs, with premiums for several major policies experiencing significant hikes.
The risk & insurance team’s report pointed to an average 50% increase in property insurance premiums across the council's portfolio, while combined liability insurance rates have climbed by 11.5%.
Notably, adding to the challenges are new insurer-imposed limitations. For properties at risk of storm or flood damage, the insurer has raised the excess payable, limited the level of indemnity, and excluded these risks from the aggregate stop loss coverage.
The changes, which took effect in May, considerably increased the council’s financial exposure. The situation is further complicated for unoccupied properties, where the insurer has imposed more stringent terms.
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