§ Mr. BercowTo ask the Secretary of State for Trade and Industry what the cost of buildings insurance to her Department was(a) before and (b) after 11 September 2001. [66937]
§ Ms HewittDepartments 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 the 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 791W (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 30.2.114 Therefore, my Department does not normally insure the buildings it occupies. However, in some instances our landlords do insure their buildings and we make annual payments of around £100.000 to cover this. These payments have not risen since 11 September 2001.