FAQs for Legal Liability insurance
Q1 What is Legal Liability insurance?
Legal Liability insurance is the title for a single insurance policy that embraces the following classes of insurance cover:
- PUBLIC LIABILITY: Accidental bodily injury to third parties and / or damage to third party property arising out of declared gymnastic activities, including coaching advice.
- PROFESSIONAL INDEMNITY: Professional Indemnity insurance provides indemnity for neglect, error or omission, breach of contract guarantee or warranty in respect of professional conduct of the business or breach of warranty of authority.
- PRODUCT LIABILITY: Accidental bodily injury to third parties and / or damage to third party property arising out of any goods sold distributed or supplied.
- FINANCIAL LOSS: Legal liability for economical loss claims arising in tort in respect of defects with any products supplied.
- LIBEL AND SLANDER: Includes defamation.
- DIRECTORS' AND OFFICERS' LIABILITY: Indemnity to directors, officers, trustees, managers etc in their role of running a club. This exposure is one of corporate governance.
- OWNER'S LIABILITY: The policy is also extended to protect against liability arising out of the use, ownership or possession of any club premises. Cover includes member-to-member liability, meaning that the policy will protect one insured member if another member is injured and claims against them
- LEGIONELLA LIABILITY: Coverage is provided for bodily injury or illness claims arising from Legionellosis
- POLLUTION LIABILITY: Cover is provided for third party property damage and bodily injury claims arising from pollution or contamination that sudden, accidental and unintended. In addition certain clean up costs and also insured.
Q2 Who is protected by the policy?
Cover is provided to each and every British Gymnastics registered member, whether they are a gymnast, coach, referee or club representative. Cover is provided for British Gymnastics affiliated clubs if all members have been registered with British Gymnastics.
Q3 What is the age limit?
There is no age limit.
Q4 Does it include Public Liability?
Yes – See Q1 above.
Q5 What activities are covered by the policy?
The policy provides cover for gymnasts, judges, clubs and coaches participating in any British Gymnastics recognised activities in a British Gymnastics recognised environment.
Q6 What significant exclusions or limitations apply?
- Risks that require more specific insurance, i.e. motor, marine
- Injury to any person employed (including volunteers). (NB. Employer's Liability cover is provided to clubs under a separate section of the policy)
- Loss of, or damage to, property in your custody or control
- Gradual pollution and seepage
- Fines, penalties or punitive damages
- Damage to products supplied and work and the repair, replacement or recall of same work
- Claims arising out of, or in connection with, asbestos
- Claims arising out of, or in connection with, damage to any data
- Nuclear risks
- War risks
- Deliberate, dishonest or foreseeable acts
- Infringement of trademark name, registered design, copyright or patent right
- Medical negligence, apart from emergency first aid
- Abuse - the person accused of abuse / alleged to be the abuser. Claims arising from loss that happened prior to the retroactive date stated in the schedule, which would be the date that your continuous membership first commenced
- Incidents / claims known to you but not reported to the insurers immediately
Q7 What is meant by ‘Claims Made’?
Part of the British Gymnastics cover is on a Claims Made basis. The sections applicable include Abuse, Professional Indemnity, Financial Loss, Legionella as well as in respect of other public liability exposure for events which occurred prior to 10th September 2014.
Where cover is on a Claims Made basis it provides insurance for those claims reported during the period of insurance (rather than the policy that was in force at the time of the incident). Claims made against the British Gymnastics claims made sections of insurance can only be accepted if your membership is current at the time you first become aware a claim may be made against you and you disclose the circumstance or claim immediately to the Insurer and during the same period of insurance. It is therefore essential to understand that if you were not to renew your British Gymnastics membership any claims made relating to unreported incidents to the insurers will be excluded.
With effect from 10th September 2014 the main basis of public liability cover changed to a ‘Claims Occurrence` basis, other than Abuse, Professional Indemnity, Financial Loss, Legionella which remain on a Claims Made basis with a retroactive date of 1st October 1985 (1st October 2013 for Legionella).
If you are unsure about any of this please contact W Denis Insurance Brokers PLC.
Q8 Why do I need £15m limit of indemnity as a minimum?
In the event of a claim your limit of indemnity is the maximum your policy will pay out including damages costs and expenses. We believe that £15m is a prudent limit of indemnity to give members peace of mind in the event that you were held responsible for causing a catastrophic injury. We have already seen claims involving gymnasts that have exceeded £5m.
Q9 Is the limit of indemnity the same for all sections?
No, there is a £5m limit of indemnity in respect of Abuse, Professional Indemnity, Libel/Slander, Financial Loss & Legionella. Directors & Officers Liability is also subject to a £5m limit in all.
Q10 Why do I need Professional Indemnity cover?
Professional Indemnity provides indemnity for any act of neglect, error or omission, breach of contract guarantee or warranty in respect of professional conduct of the business or breach of warranty of authority.
Q11 Why do I need Libel and Slander cover?
There is an increase in litigation for libellous comments, including within the sports sector. This section provides indemnity against libellous or slanderous comments including allegations of such.
Q12 What do I do if I am involved in an incident?
You should immediately record relevant information concerning incidents involving a fatality, an injury involving either referral to or actual hospital treatment, any allegations of libel / slander, any allegations of professional negligence, i.e. arising out of tuition, coaching or advice given, any investigation under any child protection legislation or any circumstance involving damage to third party property.
If there is a verbal / written allegation against you, you should advise W Denis Insurance Brokers PLC immediately, and pass on any documentation you may have received.
Q13 If I am injured, can I claim from the policy?
No if you are injured you should seek legal advice on how to pursue a claim against the person(s) responsible for causing the injury. However, you may be eligible to claim for your injuries under the British Gymnastics Personal Accident Policy. Contact W Denis Insurance Brokers PLC for details.