Trustees Indemnity cover
Trustees Indemnity cover - sometimes known as "Directors and Officers" or simply "D&O" cover - protects committee members and directors in their personal capacity. Example: a company director signs a contract for some work on the road. The work goes badly wrong, and the director is accused of being negligent and asked to compensate the company for the loss it has suffered.
Residents are often familiar with this sort of cover, because they have met it in the course of their business or professional lives. They may be willing to give up their time to act as a committee member or director of their residents' association or company, but may feel that they should not have to run a personal risk, and that this cover should therefore be provided for them.
You may take the view that this is a reasonable request; and that providing Trustees Indemnity cover should also encourage other residents to volunteer as committee members or directors.
Our Trustee Indemnity cover is available, at modest cost, as an extension to our basic policy (it is not available separately) and provides levels of cover of £100,000, £250,000 or £500,000. It covers all those who are officers of the association/company while the policy is in force. There is no need for changes to be notified to us, or for the current officers to be named in the policy.
Private roads and estates often include verges, land within loops or circles of road, parking spaces and so on. Land which is an integral part of the layout of the road is automatically included in our basic policy.
However, it occasionally happens that a residents' association or company will acquire a nearby area of field or woodland, usually in order to control development. Provided that the land is not in commercial use (and subject to any particular hazards which may be present) such areas can be added to our basic policy at modest cost: please ask us for further details if you feel you need this cover.
Employers' liability ("EL") cover
Our understanding is that for the purpose of employers' liability insurance (which is compulsory) someone is a employer in relation to a person if they are responsible for that person's PAYE and National Insurance payments.
It should be stressed that very few residents' associations and companies are in this position: contractors who carry out work such as mowing grass and sweeping up leaves are not generally regarded as employees for this purpose.
Nonetheless, a small number of associations prefer to have EL cover, on a "just in case" basis, i.e. just in case a contractor should make a claim against the association on the ground that he or she is an employee.
We can provide EL cover on request. The cost is modest - please ask us for further details. Again, EL cover is an extension to our basic policy, and is not available on its own. Our EL cover satisfies the statutory requirements.
We are happy to advise on other policies on request. We can (for example) offer cover for special events such as fund-raising fêtes and barbecues; though it should be noted that our basic policy already has a measure of built-in cover for such events. Please ask us for further details.