Definitons of Cover
Accidental Damage: Accidental damage cover is often included as a peril, particularly on package policies. Examples of accidental damage claims on a building would be someone putting their foot through the ceiling whilst working in the roof, or someone putting a ladder against a building to paint a window frame and knocking down the guttering.
Business Interruption: Business Interruption cover provides insurance for loss of income and for additional expenses incurred as a result of a loss. Cover only applies where there has been damage which is covered under the buildings and/or contents policy. The premium is based on a gross annual income figure set by the insured and cover normally applies for a 24 month period following the loss.
Employers’ Liability: Employers’ Liability is the one mandatory cover which you are required to hold. As well as employees this provides cover for all trustees, committee members and volunteers so it is required whether you employ anyone or not. So if anyone were to be injured whilst working on behalf of the hall committee – and the committee were deemed responsible - then a claim would be processed under this section. As this cover is a legal requirement we issue a Certificate of Employers’ Liability Insurance which must either be displayed at your premises in an area where it can be seen by staff or volunteers or it must be made available to them in electronic format.
Fidelity Guarantee: Cover for theft of money (embezzlement) by an employee or committee member. This includes a gradual filtering-off of funds.
Fire and Perils: The full list is fire, explosion, lightning, earthquake, aircraft, impact (by vehicles, horses and cattle), riot, civil commotion, malicious damage, storm (not to gates and fences), flood, escape of water or oil, falling trees. Accidental damage may also be included and theft will be covered too.
Hirers Liability: This provides Public Liability cover for any non-profit making hirers of the hall at an indemnity limit of £5million. Commercial organisations require separate cover for their business activities. See the Hirers Liability Guide for full details of who qualifies.
Legal Expenses: Covers legal costs arising from employment tribunals, amongst other things. This does not cover the award made by the Court – just the defence costs (and sometimes the cost of taking an action against another party).
Money: Cover usually applies for theft from own premises, the home address of an employee or in transit. Individual limits apply – e.g. to loss of money overnight in a safe and not in a safe.
Personal Accident: Cover for injury to employees or committee members arising from an accident (e.g. a car accident). There is no need for negligence. Benefits are often £10,000 for death or loss of limb or sight and £100 a week for temporary total disablement (although these benefits may differ).
Products Liability/ Publishers’ Indemnity: Products Liability provides cover in respect of food, drink and free literature. So if someone were to get food poisoning from food prepared at your premises then this would protect you. Libel and Slander is also included so if you were to produce a community newsletter that included libellous comments about an individual then the policy would offer protection if you were sued for defamation.
Professional Indemnity: Professional Indemnity protects you from harmful advice offered by your organisation which leads to financial loss. This is usually not required under our community buildings policies as it is not relevant. If however the committee were to run drop in sessions to help local people with money trouble or offer free legal advice then this may be something that you wish to include.
Property Owner’s Liability: This is on a similar basis to Public Liability but includes injury to third parties or damage to their property which arises as a result of ownership of property. An example of which would be if a roof tile were to fall from the roof either hitting someone beneath or smashing a car window.
Public Liability: Public Liability provides cover for injury to third parties or damage to their property which arises from the negligent activities of the policyholder. Cover includes the cost of defending a claim – even if you are found to be liable. So this would cover anyone that is not associated with the Hall visiting your premises –any hirers, guests or even just a local person walking across your land.
Subsidence: Subsidence cover is often not automatically given so, where buildings are insured, you should check that it applies. It provides cover for rectifying damage arising from subsidence, ground heave or landslip. Where a boundary wall or a swimming pool suffers damage, the loss is only covered if the buildings are also damaged.
Trustees Indemnity: Trustees Indemnity cover indemnifies individual members of the committee should they be accused of a wrongful act as defined in the Charities Acts. This would normally mean a breach of trust or a breach of duty. This is a useful safeguard for trustees because the role involves joint liability. If one trustee is successfully sued over a wrongful act then the whole committee would be responsible for the costs. It may be that only one of the other trustees has spare funds in which case it is this wealthier trustee who may have to pay the claim in full.