Crawley Borough Council has become one of the founding members of a scheme called the Local Government Mutual in a bid to save money.
The mutual aims to save its members money by offering an alternative to insurance products and services available to local authorities.
Any surpluses the mutual generates can be used to reduce the cost of insurance, improve the claims process or returned to members as income.
The structure of the mutual means the council will not pay insurance premium tax, currently set at 12 per cent, on the vast majority of insurance products.
A council spokesman said: “As well as saving money, the mutual puts councils in control by working together, sharing knowledge of best practice and reducing members’ risk exposure without increased costs.”
Councillor Peter Lamb, leader of the council, added: “It’s great to see Crawley Borough Council become a founding member of this initiative. The mutual is another way the council is saving money to put back into services and to reduce the forecasted budget gap.”
As a member, the council can still choose between the mutual and private companies for its insurance.
However, the mutual can offer price matching or better cover that is up-to-date with changes in local authorities’ organisational and operational activities, said the council.
The council can insure through the mutual from April 1 2020.