Why your organisation should provide insurance cover for staff and volunteers
Your organisation may be liable for harm caused to its members, to volunteers and to the public. The law makes clear that we all owe other people a duty of care. If there is a breach of that duty which causes injury to someone else, or damage to their property, then your organisation or its members or volunteers could receive a claim for damages, and face a very expensive bill if found to be at fault. You can protect your organisation against the financial consequences of negligence through liability
insurance, and by taking action to protect the safety of people affected by your activities.
Types of Insurance
There are two types of liability insurance most sport and recreation organisations will need – public liability insurance and employers’ liability insurance.
Liability insurance broadly speaking covers the compensation that may be due to somebody harmed by negligent acts or failures to act. It also covers the legal costs of investigating and defending any such claims made against the organisation and its officials or volunteers.
Employers’ Liability Insurance covers the organisation’s legal liabilities for injuries to its employees sustained in the course of employment. This insurance is compulsory by law.
Public Liability Insurance provides cover for injuries to the public or damage to their property. It is important to remember that “the public” here means anyone other than an employee, so it can include volunteers, participants and spectators. For a sports organisation this could include claims from those who organise or take part in its
activities, or members of the public who may otherwise be affected by it - for instance a passer-by who is injured during a road race. Some insurers may also offer ‘member to member’ liability within the scope of their public liability policies.
Professional Indemnity Insurance covers financial loss or personal injury to clients resulting from your negligent advice or actions.
Product Liability Insurance protects against damage caused as a result of a fault in the design or production of a product sold or supplied [including defective containers]. In addition to the sale of sports equipment, this can include refreshments supplied at events.
Directors and Officers (D&O) Insurance covers claims against one of the organisation’s directors or other officers individually, as opposed to those made against the organisation itself. People with management responsibility (including members of a committee) may also be held responsible for lack of care and skill in carrying out their duties, so D&O insurance may be relevant in these circumstances as well.
Trustee Indemnity Insurance provides similar cover to D&O insurance (above) for appointed trustees against the risk of personal liability arising from any breach of trust. The purchase of this cover will need to be authorised by the governing document of the organisation, or by the Charity Commission as appropriate.
Typically, these liability policies provide cover of between £2 million and £5 million.
USEFUL CONTACTS
Association of British Insurers www.abi.org.uk
British Insurance Brokers’ Association www.biba.org.uk
CCPR – One Voice for Sport and Recreation Central Council of Physical Recreation http://www.ccpr.org.uk
Health and Safety Executive www.hse.gov.uk
The Child Protection in Sport Unit www.thecpsu.org.uk
Perkins Slade Limited – insurance brokers www.perkins-slade.com
