1. Euan Drysdale Keegan & Pennykid (Insurance Brokers) Ltd
TAKE COVER!
Euan Drysdale
Keegan & Pennykid (Insurance Brokers) Ltd

2. WHY DO WE INSURE? Legal Requirement – Protection against prosecution.
Contractual Obligation.
Protection against catastrophic loss.
Protection of Personnel individually from claims which may be made against them.
To Protect the Organisation’s activities & assets from the effects of a loss.

3. WHO MAY BE COVERED ?
The Trustees, Management Committee, Board of Directors, Employees, Volunteers
The Organisation – The Legal Entity.
The Members – particularly relevant to clubs and societies.

4. FIRST PRINCIPLES How do we go about getting a quotation?
What information will we need to give?
Full Business Description, Copy policies & procedures, Loss History, Location of Operations, Annual Report & Accounts

5. ESSENTIAL COVERS Public Liability Insurance
Employer’s Liability Insurance
Motor Vehicle Insurance if you operate a vehicle on the public highway.
Engineering Insurance for some types of pressure plant or lifting equipment.

6. PUBLIC LIABILITY
Any Organisation no matter how small needs to effect Public Liability Insurance.
Covers the Legal Liability of your Organisation for its activities.
What is the Indemnity Limit?
What factors should affect your calculations when selecting the limit.

7. PUBLIC LIABILITY Misconceptions
We operate from a Community Hall and their Insurance covers us!
All our work is done by third parties or Contractors so there’s no risk to us! – They’re Insured.
We need a “Public Liability Certificate”.

8. PROTECTION OF CHILDREN & VULNERABLE ADULTS
How do allegations of Abuse differ from other claims made against the Organisation?
How do Insurers deal with this?
What is the impact on the Organisation?
How does it affect Indemnity Limits?
What is the “Audit Trail” ?
Why is it so crucial in the defence of a claim?

9. ADDITIONAL CONSIDERATIONS
What about “one off” events or hazardous pursuits?
Administration of Drugs or Treatments?
We need a higher Indemnity Limit than our Insurer is able to give us.

10. PRODUCTS LIABILITY What is covered?
We recycle and sell on second-hand goods – is this activity covered?
Does this mean we’re covered if the product doesn’t work and the customer wants their money back?

11. EMPLOYER’S LIABILITY
Required by law if you employ anyone no matter how casually.
Cover should include Volunteers who may be considered in some circumstances to be unpaid employees.
Only covers Injury or Illness of the employee/volunteer – not property damage.
Contains very few exclusions.

12. EMPLOYER’S LIABILITY
What is the Minimum Indemnity limit required by UK law?
What is the usual Indemnity limit provided by Insurers?
What if you need a higher limit?
When might you need a higher Indemnity limit?
How do you arrange a higher limit?

13. MOTOR INSURANCE
“Our Organisation owns a car which we all use, but the Manager had 60% No Claims Discount so we took out an any driver policy in his name”.
Where’s the flaw in this arrangement?
What are the potential consequences: (a). For the Organisation? (b). For the Drivers?

14. ENGINEERING INSURANCE
What is your understanding of this cover?
Any item of plant that lifts people must by law be inspected at regular intervals.
Certain types of Pressure plant are also required to have regular inspections.
Examples of plant regularly encountered:- Vehicle tailboard lifts, stairlifts, fork lift trucks, passenger lifts, Air Receivers, Coffee Machine Boilers.

15. ADDITIONAL LIABILITY COVERS
Professional Indemnity Insurance.
Medical Malpractice Insurance.
Legal Expenses Insurance/Employment Practises Liability Insurance.
Trustee Indemnity/Directors & Officers Insurance.

16. PROPERTY DAMAGE Buildings

17. Buildings Insurance
Buildings should be Insured for the full reinstatement value – Particularly important if it is a “Listed Building”.
If you are only the tenant, any improvements that you make to the property should be insured by YOU.
If your lease makes you responsible for the decoration of the premises, the cost would be insured as tenant’s improvements.

18. Buildings Insurance
Remember that your building valuation should include VAT, it often needs to be added onto the final quoted figure.
Failure to take account of this could leave you seriously under-insured – Extremely costly!

19. CONTENTS INSURANCE
The benefit of keeping an up to date inventory really comes into its own in the event of a loss.
If you keep it on an Excel Spreadsheet it has the further benefit of being easily kept up to date.
For ease of use separate the types of property along the same lines as Insurers.

20. CONTENTS CLASSIFICATIONS
Electronic business equipment.*
Furniture, Fixture Fittings & All other contents.
Portable property used away from the premises.
Business Files.
Stock

22. CONTENTS INSURANCE
If this is written on a package type policy it will usually include Loss of Money Insurance and Glass cover.
If the policy is written on a Combined basis these covers may need to be bought separately.
* Separate Computer Insurance can be bought for “maintained systems” which provides wider cover than the standard accidental damage.

23. BUSINESS INTERRUPTION
What is meant by this term?
What can we do about it?
How do we go about arranging the most appropriate cover for this risk?

24. Business Interruption
Every Organisation no matter how large or small should have a Disaster Recovery Plan.
Its effectiveness should not be measured by the volume of paper that goes into it.
It should be tested periodically to ensure that it is effective and remains so.
Insurers are beginning to offer discounts where an effective plan has been prepared.

25. Business Interruption
How do you decide on the most appropriate basis of the cover?
Gross Revenue or Gross Profit, or Additional Expenditure?
What is the “Indemnity Period”?
How should you assess and select it?

26. PROFESSIONAL INDEMNITY INSURANCE
Any Organisation who provide advice or information as part of their activities should consider effecting cover.
The absence of any Fee for the advice does not relieve you of responsibility for its accuracy.
Claims will usually be for perceived or actual financial loss.

27. Professional Indemnity Insurance
The Indemnity Limit need not necessarily be the same as for Public Liability – the levels of risk may be quite different.
Medical Malpractice cover may also be required in some circumstances.
Policies are written on a “Claims Made” basis.
Run-off cover needs to be arranged or at least funded for when the work that required the cover is finished.

28. TRUSTEE INDEMNITY INSURANCE
Covers the Organisation, its Trustees, Management Committee or Board of Directors.
For Limited Companies this becomes “Directors & Officers Liability”.
Policy does NOT cover deliberate wrongdoing, nor failure to Insure.

29. Trustee Indemnity Insurance
The Limit of Indemnity should be selected appropriate to the size of the Organisation and the income and assets under its control.
Directors of Limited Companies CAN be held personally liable for their actions and this is quite separate from the financial liability which is limited by the company status.

30. LEGAL EXPENSES INSURANCE
Not to be confused with the Legal Defence costs covered by liability policies.
Often known as Employment Practices cover, as employment disputes are the main source of claims.
Cover is only for specified types of legal expense.
Usually includes cover for Inland Revenue investigations or Customs & Excise where VAT disputes occur

31. Legal Expenses Insurance
A Minimum Indemnity Limit of £200,000 should be considered given the current maximum award level for unfair dismissal.
ALWAYS consult the Legal Helpline BEFORE embarking on ANY disciplinary action. Failure to do so may invalidate your ability to claim on the Insurance.

32. OPTIONAL COVERS TO BE EFFECTED AS NECESSARY
Fidelity Guarantee Insurance.
Personal Accident and or Sickness Insurance.
Travel Insurance.
Event Insurance – Cancellation cover.
Loss of no Claims Discount/Excess payment cover.
Contract Works Insurance.

33. ARRANGING YOUR INSURANCES
The quality of cover you will get depends on where you buy your cover. Consult a Specialist Insurance Broker.
Ensure that the policy is written for Charities or Voluntary organisations – They’re generally cheaper and will usually provide wider benefits.
Ensure that the wording specifically includes volunteers.

34. Arranging Your Insurances
Ensure that the broker/Insurer has a clear and full understanding of what your Organisation does and how it is done or you may find your cover is inadequate.
Pay special attention to any restrictive terms or conditions – if they seem inappropriate query them or have them clarified or removed.

35. RISK EVALUATION
Which of the following methods would you prefer to use? Why?
(No, not my idea of fun either).

38. CONTACT DETAILS
Keegan & Pennykid (Insurance Brokers) Ltd. 50 Queen Street, Edinburgh, EH2 3NS.
Telephone