Marine Counter-terrorism: Contingent Liability

I am today laying before the House of Commons a departmental minute on the use of contingent liability by the Home Office to support the delivery of maritime counter terrorism response capabilities by our emergency service partners.

In enabling delivery of these capabilities, this Government have undertaken analysis on the insurance implications. It concluded that HMG indemnity is the most practical solution to ensuring full insurance coverage is in place. While the likelihood of a scenario occurring requiring use of the contingent liability is remote, it will provide operational delivery partners with additional assurance regarding any realised financial liabilities for any claims arising from the response to a maritime terrorist attack, in the event of market failure.

HM Treasury has approved this proposal in principle. In the unlikely event the liability was to manifest, further evidence would be provided and provision for any payment due under the liability will continue to be sought through the normal supply procedure.

A full departmental minute has been laid before the House of Commons providing more detail on this contingent liability.

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