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Case Study

The Liveries Companies’ Mutual

By October 1, 2020No Comments

About The Liveries Companies’ Mutual

  • Established in 1999
  • 75 Members
  • £2.4bn assets covered
  • 850 claims managed
  • £5.6m surpluses accumulated
  • 100% Member retention
  • Aviva is the principal insurer
  • Access to recommended Loss Adjusters and Fine Arts Valuers
  • 24 hour access to Disaster Care Platinum.

Product lines covered:

  • Business Interruption
  • Employers’ Liability
  • Engineering
  • Fine Art
  • Legal Expenses
  • Management Liability
  • Public Liability
  • Property
  • Terrorism

The Livery Companies’ Mutual was established by four Members in 1999 following frustrations with the insurance market, specifically a perception that their existing brokers and insurers didn’t properly understand the nature of their risk and activities. Several Livery Companies felt that the premiums they were paying didn’t reflect their excellent claims record, the cover wasn’t tailored to their needs, and that when they did occasionally have to make claims they were poorly dealt with. To develop a better product, price and service proposition, they joined together to form a Mutual.

In  2003  the Mutual  expanded the  membership offer    to include London Clubs and other carefully selected membership organisations. The decision to diversify was made by the Board and actioned by the Managers. The Mutual now has 75 Members, predominately from Livery Companies.

The Board is very selective in offering membership of the Mutual, ensuring that Members have similar risk profiles and the required attitude to risk management and claims. The Directors have been known to meet with a potential Member to ensure the Mutual is a good fit for them. In this way the Mutual is a community, operated for the benefit of all Members.

The Mutual knows its Members well, and their feedback has enabled the Mutual to enjoy a 100% retention rate and a high level of Member satisfaction. Risk management is also key to the Mutual‘s performance, and has contributed to the successful accumulation of £5.6m surpluses, £1.7m of which has been distributed back to Members.

All claims within the Mutual’s retention are discretionary and handled by the Managers under their delegated authority. There are plenty of examples of claims not covered which have been considered and accepted by the Board. For example, a Member of the Livery Companies Mutual noticed fine dust particles on the floor of the Court Room. Upon inspection they realised fine cracks had appeared in the frieze and the ceiling above. Due to the nature of the construction of the suspended ceiling, the steel hooks holding the ceiling in place were unable to be inspected as there were no access points. Unbeknown to the Member, the mechanism had failed over time – but through no fault of the Member.

Following an immediate visit and inspection from the Mutual’s Loss Adjusters, it was clear that the ceiling would collapse    if nothing was done. Ordinarily, a loss of this type would be classified as latent construction or design defect as well as a gradual deterioration over time, and a typical insurance policy would not have paid for any property loss arising from the failing ceiling. However, being able to exercise discretion, the Mutual agreed to a payment of 75% towards the reinstatement costs of the ceiling, roughly £146,000.


The Liveries Companies’ Mutual is managed by Regis Mutual Management.