§ Mr. BercowTo ask the Secretary of State for Education and Skills what the cost of buildings insurance to her Department was(a) before and (b) after 11 September 2001. [66938]
§ Mr. Stephen TwiggDepartments are required to comply with the Government's general policy on insurance, which is set out in "Government Accounting". chapter 30, para 30.2.5, which notes that Government do not need to purchase insurance to protect the viability of its business, and should consider insurance only where the 827W value of claims met would exceed the cost of insurance premiums. Commercial insurance of a building is acceptable in cases where (a) insurance is a condition of a lease (b) the lessor will not accept a Government indemnity (c) incurring the total cost of the accommodation in question, including the cost of the insurance, is more cost-effective than other accommodation options ("Government Accounting", para 30.2.11a).
My Department building insurance, however, is paid on an annual basis, so any impact from September 11 has not been reflected as yet. The total insurance paid in 2001–02 was £121,171.