The council could set aside £2million in preparation for any claims from historical child abuse survivors.
In a report to councillors which will be presented to a full council meeting this week, officers recommend a pot is earmarked due to new Scottish Government legislation.
They say forthcoming claims are “likely” across the country ahead of a new bill being introduced in spring.
It follows a consultation by the Scottish Government which found those responsible for the abuse of children in care should make financial contributions to a new redress
scheme.
Deputy First Minister John Swinney previously said in September last year: “Scotland has joined a small but growing number of countries facing up to the wrongs of the past.
“Responding to the harm done to children in care by those trusted to look after them is the right thing to do.
“I know that nothing can make up for what happened, but along with other measures to help survivors, financial redress is an important step.”
The consultation will help design the statutory financial redress bill.
The West Dunbartonshire Council report states: “Members will be aware of the Scottish Government approach to this issue and it is likely this council, along with all others, will receive claims arising from recent legislation.
“This issue is complex and the numbers of potential claims are not known, nor the likely outcome of such claims in terms of whether the council will require to fund compensation payments or whether insurers will be covering all or some of any such successful claims.
“It is recommended that in order to be prudent a sum of £2m is set aside as an earmarked reserve to mitigate the future risk of such claims.”
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