COUNCIL officials are holding talks with an insurance company after the authority received an unexpectedly inflated bill.
Darlington Borough Council was shocked last week to receive a quote from Zurich Municipal stating its premiums had increased by £400,000.
The council said it had not been given enough time to tender for other quotes for insurance and the extra money would have to come from its budget, which could affect council tax bills or services.
Zurich said the increases were necessary to make it financially competitive and were a result of changes in the national insurance market.
Following the council's complaints about the quote and suggestions Zurich had the authority "over a barrel", concerning the new premiums, the insurance company has written to the authority.
A council spokesman said: "We are now in talks with Zurich and are trying to negotiate a better deal."
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