If a Parish Council were sued for nuisance, negligence, structural damage, damages and costs et al by a parishioner, and the PC's liability insurers and their underwriters, having investigated the matter, then revoked the insurance cover, having concluded that the PC had invalidated the insurance contract by their own negligence. Who would be held liable for the substantial settlement or judgement if it greatly exceeded the disposable funds within the PC's precept?
If the PC had grossly insufficient funds to either settle out of court or pay a court judgement because their liability insurance claim had been denied, who would pay?
Would the debt be covered by District or County Council? Is there a protocol or precedent for this eventuality?
In the event of having had their claim for liability insurance denied, could a Parish Council become bankrupt (or similar) if they were unable to settle out of court or pay a substantial judgement against them?
Could individual councillors be held liable?