Three months before former mayor Paul Pisasale resigned from office, Ipswich City Council set up a second 'legal assistance policy' to cover its staff over potential legal action, ABC News can reveal.

The new policy was in addition to cover already provided to all councils via an insurance scheme managed by the Local Government Association of Queensland (LGAQ).

Since the secondary policy was set up, five staffers have accessed it, but their names have been withheld from public release.

LGAQ spokesman Greg Hallam said he was not aware of the new policy and said he did not know of any others like it across Queensland.

"I don't believe it's unlawful but it's a surprise to us and we're not aware of any other council that does that," Mr Hallam said.

More than a dozen people with links to the council — including two CEOs and two mayors — have been charged by the Crime and Corruption Commission since June 2017.

The new policy was approved at a council meeting in February 2017. ( ABC News: Melanie Vujkovic )

The new policy was approved at a council meeting in February 2017.

A council spokesman said the scheme was set-up by Council and is run by the Council.

The resolution that went before council said it covered legal representation costs "in respect of legal proceedings that have been threatened or commenced against an employee or councillor in their personal capacity, or which, in exceptional circumstances, may need to be commenced to properly protect the interests of a councillor, employee or the reputation of council".

Under the provision, the policy can only be accessed with approval by the mayor or chief executive officer.

Premier Annastacia Palaszczuk said it was "odd", but ultimately the policy was a matter for the Council.

The Government is currently deciding whether to sack the Council.

"It sounds very strange," she said.

Bundamba MP Jo-Ann Miller said it was unusual considering the provisions already delivered through the LGAQ.

"I think the people of Ipswich will be shocked and dismayed to hear that there is yet another type of policy that is only for Ipswich City councillors and Ipswich City employees," Ms Miller said.

"I'd like to know why the people of Ipswich weren't informed about this extra layer of protection and why it's not common throughout other local governments in Queensland as well."

ABC News has been unable to obtain the cost of the new policy for Ipswich ratepayers.

The policy is set to be reviewed next year.