Hillsborough compensation ‘won’t be covered by insurance’

A freedom of information request submitted to South Yorkshire Police found that the liability cover held by the force will not cover for compensation on the grounds solicitors are resting their case on. 

Families of the victims of the Hillsborough disaster have launched a class action lawsuit against South Yorkshire Police on allegations of ‘misfeasance in public office' - a misuse of public power.

"South Yorkshire Police do not hold any liability insurance covering the recent rulings," the FOI response said.

"We will work closely with the Police and Crime Commissioner for South Yorkshire and the Home Office to explore ways to enable payments to be made where these reach the legal threshold. The amount of legal costs and damages is unknown at this time."

Police at the force are accused of altering the testimonies of survivors to make it appear that Liverpool fans caused the crush.

A statement from Saunders Law, the solicitors representing the families, said: "There is evidence of the systematic cover up intended to transfer the blame for what happened from South Yorkshire Police to the innocent, by spreading lies, doctoring evidence, pressurising witnesses and suppressing the truth."

According to public records, South Yorkshire Police were previously insured by Municipal Mutual Insurance, with general liability coverage up to £8.5m.

However, MMI suffered substantial losses in 1990 and 1992, and was acquired by Zurich in 1993. The policy held by South Yorkshire Police is among the MMI runoffs, currently held by Zurich Municipal.

A source with close knowledge of the case said the general liability cover currently held by South Yorkshire Police does not cover charges of ‘misfeasance'.

The lawsuit also names West Midlands Police as being involved in the alleged abuse of power. It is not known whether they are also insured by MMI, or whether their insurance covers compensation against a finding of misfeasance.

Zurich Municipal declined to comment.

If insurance won't cover compensation, the cost will have to be borne by public funds. Newspaper reports that the sum would be as much as £20m were denied by Saunders Law.

"Our clients' claim has been issued for an unspecified amount to be determined by the Court and is first and foremost about obtaining accountability for the cover up," a spokesman from the law firm said.

A coroner's inquest verdict in April found that the 96 victims of Britain’s worst ever sporting disaster were unlawfully killed. A spokesman for Saunders Law said the lawsuit will be filed after the results of a separate criminal investigation by the Independent Police Complaints Commission (IPCC) were publicised.