Ipswich City Council took out a further legal insurance policy three months before the former mayor, Paul Pisasale, was charged with corruption.
The policy was designed to help council employees access and pay for legal services for either personal or professional lawsuits, providing they obtained approval from either the CEO or Mayor.
The policy is in addition to insurance provided by the Local Government Association of Queensland.
More than a dozen people with links to the council, with two CEOs and two mayors, have been charged by the Crime and Corruption Commission since June 2017.