Making sure that you have the right insurance cover in place is essential. You need to be sure that you have a policy that meets your needs and that you understand exactly what cover is being provided and any restrictions or conditions that it may contain.
It’s important to remember that as trustees the members of the management committee have a duty to insure the hall’s assets and liabilities and that they may be held personally liable if they fail to do so.
To start with you need to consider what you need to be insured for.
Some examples are:
- The hall itself
- The contents of the hall such as tables, chairs, audio visual equipment, kitchen equipment and crockery and cutlery
- Property outside the hall such as playground equipment and playing surfaces
- Property that is used predominantly outside the hall such as lawn mowers and marquees
- Your activities and events
To help you understand the cover that you’ll need, the following is a brief description of the most common types that are available within a policy that is specifically designed for village halls:
This section will cover the village hall and its contents from a number of risks such as fire, flood, storm, malicious damage and theft.
It’s vitally important that you choose the correct sum insured as failure to insure for the full value may result in partial settlement of a claim.
Loss of Revenue
If you are reliant on the income raised from the hiring out of the hall, you might suffer a loss of revenue if your hall is unavailable as a result of damage. The sum insured you select needs to represent the potential loss of revenue over the indemnity period which is usually 12 or 24 months.
This section covers cash and cheques whilst they are in transit to the bank, whilst at the hall or at the home of an authorised person and also whilst at events.
If you have any full or part-time employees then you are legally required to have employers’ liability insurance to protect against claims for injury. Many policies consider temporary staff, volunteers and helpers, whether paid or unpaid, to be employees and provide cover for them under this section.
A limit of indemnity of £10,000,000 is provided as standard.
The policy should provide cover for all activities connected with the hall including fund-raising events that take place away from the premises. The section covers your legal liability to pay compensation to third parties who suffer loss or injury arising from the committee’s negligence.
A limit of indemnity of at least £5,000,000 is recommended.
This section will provide public liability cover for third party groups and individuals whilst they are hiring your hall. Commonly the cover will only apply to non-commercial hirers who would otherwise find it difficult to arrange their own insurance.
Fidelity Guarantee insurance is designed to provide cover for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by a trustee or employee. It is sometimes called ‘employee dishonesty’ insurance.
Personal accident cover provides for the payment of monetary benefits in the event of accidental injury irrespective of any legal liability. The cover usually applies to all committee members, employees and volunteers.
Trustee indemnity insurance is designed to cover circumstances where a claim is made against a trustee, officer or committee member as a result of a wrongful act for which they become legally liable. Wrongful acts include any actual or alleged breach of trust, breach of duty, breach of warranty or authority, breach of statutory law, omission, neglect, error, misstatement, misleading statement and defamation.
Libel and Slander
This type of cover provides protection against claims for defamation which might arise from public meetings, public statements, publicspeeches or from newsletters.
Cancellation and Abandonment
This section provides cover for your irrecoverable costs which you incur as a result of the unavoidable cancellation or abandonment of an event for reasons beyond your control.
Loss of Licence
This section will provide indemnity cover against losses sustained due to the reduction of your revenue as a consequence of the loss of licence.
Here you will be covered for legal costs and expenses that are incurred as a result of an insured event. These events will usually include employment disputes, data protection issues, tax disputes, contract disputes and prosecution defence.