§ Mr. BercowTo ask the Secretary of State for Work and Pensions what the cost of buildings insurance to his Department was(a) before and (b) after 11 September 2001. [66924]
§ Mr. McCartneyDepartments are required to comply with the Government's 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 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]
The only circumstance where the Department incurs insurance costs is where this is a condition of a lease, with payment being made as part of the service charge paid to the landlord. Information on these charges is not held centrally.