INSURANCE
Section 10 of the Scheme for Financing Schools requires that a school must take
out cover relevant to the LA’s insurable interest, under a policy arranged by the
governing body, which is at least as good at the cover which, would have been
arranged by the LA itself.
Included as part of this document are schedules indicating the level of cover
taken out by the LA. Where the insurable interest remains with the LA, schools
will be required to take out cover at least as good as that specified. For those
schools, or those covers for which the LA does not hold an insurable interest the
information is provided as guidance of appropriate practice.
Identification of the insurable interest can best be determined by consideration of
who holds the legal title to property, or who is the legal employer of staff etc.
Some detailed issues may be subject to debate and may only be clarified by case
law. In cases of uncertainty guidance may be sought form the LA and this will be
given wherever possible.
Where the LA has an insurable interest schools should arrange for details of the
proposed policy cover to be sent to the Insurance & Risk Management Section of
the Council at Civic Offices to confirm that the proposed cover and Insurance
Company are appropriate.
Page 1 Revised April 2010
Property Damage
Description of Risk
1. Buildings including outbuildings, fixtures and fittings, patios, terraces,
swimming pools, tennis courts, footpaths and drives, walls, gates, fences,
sewage, drain, water. gas and fuel oil pipes and storage tanks, electricity,
telephone and other cables.
Sum Insured
£
2. All contents including tenants' improvements, decorations, external aerials,
their fixtures and masts and Computer Equipment.
Sum Insured
£
Perils Covered
1. Fire
2. Lightning
3. Explosion
4. Storm or Tempest (£250 excess)
5. Flood (£250 excess)
6. Bursting or overflowing of water tanks, apparatus of pipes (£250 excess)
7. Impact by any road vehicle, horses of cattle (£250 excess for Impact by own
vehicles)
8. Aircraft and other aerial devices dropped therefrom
9. Riot and civil commotion
10. Malicious Damage (£250 excess)
11. Earthquake
12. Escape of oil (including resultant loss of oil)
13. Falling Trees (£250 excess)
14. Thunderbolt and Subterranean Fire
15. Spontaneous Combustion
16. Accidental Damage (£250 excess)
17. Subsidence, Heave and Landslip - For all buildings (£2,500 excess)
18. Theft involving forcible and violent entry/exit (£250 excess)
19. Theft not involving forcible and violent entry/exit (£250 excess)
Page Revised April 2010
Extensions
1. Inflation Provision
It is recommended that the cover is arranged on the Day One Reinstatement
Scheme. This would relieve the School of any uncertainties regarding the future
trend of prices and the time required to reinstate the property following damage.
A brief summary of this cover is as follows:-
a) The figure in brackets below the Sum Insured is the Declared Value, being the
cost of Reinstatement of the First Day of Insurance, i.e. "Day One". It includes
any inflation factor but should allow the additional cost of reinstatement to comply
with Public Authority requirements. The premium is calculated on this figure.
b) The School is indemnified up to the amount of the Sum Insured. This is the
Declared Value plus an amount to cater for the effects of inflation during the
period necessary for reinstatement (including the period following damage). The
cover includes an inflation factor of 25%.
c) On expiry of each period of insurance the School should notify the insurers of
the Declared Value for the subsequent period.
2. Personal effects of staff and governors subject to a maximum of £500 per
person, provided that they are not otherwise insured.
3. Temporary removal of all contents belonging to the School for the purposes of
cleaning, renovation or repair.
4. Damage to pipes and cables on the site of the premises
5. Damage to buildings caused by breakage or collapse of T.V. or radio receiving
aerials, fittings or masts.
6. Removal of debris plus architects, surveyors, consulting engineers and legal
fees.
7. Newly acquired or newly erected buildings or contents not yet added or more
specifically insured, and improvements to existing buildings or contents.
8. Damage to fixed sanitaryware, fixed internal and external glass including
boarding up costs, framework and fittings
9. Contents including all items on permanent loan, lease or hire to the School i.e.
leased photocopiers
10. The sum insured under the buildings and contents represents the
reinstatement as new value.
Notable Exclusions
1. Wear, tear and depreciation
2. Defective workmanship
3. Inherent vice, latent defects, frost and gradual deterioration
4. Storm or flood damage to movable property in the open and fences and gates.
Page Revised April 2010
5. Damage caused by Fire and Explosion as a result of Terrorist activity is limit to
£100,000 unless additional cover is purchased.
6. The first £250 of each claim (except for subsidence, heave and landslip which
is £2,500).
Page Revised April 2010
Consequential Loss
Description of Risk
1. Additional expenditure incurred in continuing the activities of the School
following destruction of or damage to School property
Sum Insured
2. Loss of Revenue
Indemnity Period - 36 Months (minimum)
Perils Covered - (as per Property Section)
Extensions
1. Additional expenditure incurred due to the accidental failure of any public
utilities at the premises
2. Auditors fees
3. Denial of Access
4. Closure of premises due to the notifiable infections or contagious diseases
occurring in the premises.
5. Murder or suicide occurring at the premises.
6. Poisoning caused by food or drink provided in the premises
7. Vermin or pests or defects in the drains or other sanitary arrangements at the
premises.
Page Revised April 2010
Money
Description of Risk
Loss of money or cheques from the
situations detailed hereunder,
subject to the stated limit of liability
in respect of any one loss.
Sum Insured Limit
1. In the private residence of any £250
employee
2. In the School premises
(a) in the custody of the School's
employees. £500
(b) in locked safes or strongrooms £500
4. Non-negotiable money £250,000
Public Liability
Description of Risk
Legal Liability to pay damages arising out of claims for negligence in respect of
accidental bodily injury or illness to third parties or loss or damage to third party
property arising out of the usual activities of the School.
Limit of Liability
£50,000,000 any one occurrence and unlimited in the period of insurance
Extensions
1. Contingent liability of the School for death or bodily injury to third parties or
damage to third party property arising out of the use on the business of the
School of motor vehicles belonging to Governors or Employees
2. Indemnity in respect of defence costs arising from any prosecution under the
Data Protection Act 1984 and/or with the written consent of the insurers and
appeal costs.
3. Compensation for court attendance as a witness in respect of any claim
hereunder:-
i) £500 per day for any Governor
ii) £250 per day for any employee
4. Personal indemnity to Governors, Employees, Pupils, Volunteers, Principals to
a contract and officers or members of the School's catering social and welfare
organisations.
5. Legal costs and expenses incurred in the defence of any prosecutions resulting
from a breach of the Health and Safety at Work Act 1974, sections 2.3.4.5. and 7
even if an accident has not occurred.
6. Legal liability for loss (as distinct from injury or damage) sustained by third
parties as a result of any negligent act error or omission by a Governor or
employee of the School during the currency of the policy.
7. Liability arising out of pupils on work experience.
Principal Exclusions
1. Liability arising out of the use of boats over 5 metres in length
2. Liability under the Road Traffic Act
3. Pollution, other than in respect of a single identifiable event.
Page Revised April 2010
Employers Liability
Description of Risk
Legal liability for bodily injury or illness suffered by any person under a contract of
service or apprenticeship with the School when such injury or illness arises out of
and in the course of their employment.
This cover is compulsory under the Employers Liability Act 1974
Limit of Liability
£50,000,000 any one occurrence (inclusive of costs) and unlimited in the period
of insurance.
Extensions
1. Employees include any person who is:-
(i) under a contract of service or apprenticeship with the School
(ii) supplied to or hired or borrowed by the School
(iii) engaged under any work experience or similar scheme
2. Legal costs and expenses incurred in the defence of any prosecutions resulting
from the breaches of Health and Safety Act 1974 Sections 2,3,4,5 and 7 even
though an accident has not occurred.
3. Payments of court judgements obtained by employees against other
persons/bodies for injury or disease suffered in the course of their employment
with the School if such judgements remain unsatisfied in whole or in part for six
months afterwards.
Page Revised April 2010
Fidelity Guarantee
Description of Risk
Loss of money or property belonging to or in the trust or custody of the School,
for which it is legally responsible, as a result of fraud or dishonesty on the part of
any of the School's employees.
Sum Guaranteed
£100,000 in total in any one period of insurance
Extensions
1. Cover would extend to include fraud and dishonesty discovered up to 24
months after the termination of the guarantee or employment/service of the
defaulter.
2. Employees include any person:-
(i) under a contract of service or apprenticeship with the School
(ii) supplied to or hired or borrowed by the School
(iii) engaged under any work experience or similar scheme
3. The sum guaranteed would be automatically reinstated after a loss (subject to
the payment of additional premium if required)
4. Inclusion of auditors fees, incurred with insurers consent, solely to substantiate
the amount of the loss
Notable Exclusions
1. The first £100 of each and every loss
2. Cover will not be provided if references are not obtained within six weeks of
engaging an employee, covering three years and confirming that the employee is
of trustworthy character.
Page Revised April 2010
Personal Accident - Employees
Description of Risk
Provides for the payment of compensation as a result of the employees
sustaining bodily injury in the course of their duties including direct travel to or
from such duties as a result if :-
a) assault only, or
b) all accidents including assault
Scale of Compensation
1. Death or Loss of one or more limbs or eyes or permanent total disablement 3 x
Annual
Earnings
2. Permanent partial disablement - varying percentages of the benefit
3. Temporary total disablement from usual occupation for up to 50% of weekly
earnings for a maximum period of 104 weeks.
4. Temporary Partial Disablement from usual occupation for up to 50% of weekly
earnings for a maximum period of 104 weeks.
5. Loss of or damage to clothing and personal effects at the time of the injury for
which compensation is payable above - £750
Minimum Benefit - £35,000
Maximum Benefit - £210,000
Extensions
1. Applies during School time, travelling to and from School and during School
related activities, sports events and journeys in the holidays
2. Damage to teeth and dentures
Page Revised April 2010