The LEA, through Luton Borough Council, is currently insured with Zurich Municipal for the policies detailed below. Schools that have taken advantage of the “buy back” of insurance policies with Luton BC will be insured in situations where governors are acting in an official capacity on behalf of the school in line with its statutory powers.
Employers’ Liability
This insurance policy protects the Council and governors against their legal liability for bodily injury, illness or disease suffered by any persons under a contract of employment or apprenticeship with the Council or school arising out of an in the course of their employment.
With regard to extended school services, the answer will depend on whether the service is managed by the school; a separate management committee or other third party organisation is running it. If it is a separate management committee or third party organisation they must hold their own insurance cover.
Governors could potentially be brought into any corporate manslaughter action at foundation or VA schools (where the governors are the employers), if gross negligence has occurred and the school has not followed LEA guidance.
There is a limit of indemnity of £50,000,000 any one event, for this policy.
Public Liability
This insurance policy protects the Council, school employees and governors, against their legal liability for accidental bodily injury, illness or disease to third parties, or accidental loss or damage to third party property, arising out of the school’s usual activities.
Insurance cover is conditional on the Council ensuring that all reasonable precautions are taken to prevent or minimise accident, injury, loss or damage and all regulations imposed by any “competent authority” are complied with. For example, safety clothing and equipment must be worn or used when appropriate, and all regulations issued by the LEA must be adhered too.
As with Employers Liability where extended school services are offered, the answer will depend on whether the school manages the service; a separate management committee or other third party organisation is running it. If it is a separate management committee or third party organisation they must hold their own insurance cover.
There is a limit of indemnity of £40,000,000 any one event, for this policy.
Officials Indemnity
The policy covers the legal liability of Governors for financial loss arising from any claim or claims made against them as a result of any negligent act, error or omission committed, or alleged to have been committed in good faith, whilst undertaking school or LEA business.
There is a limit of indemnity of £5,000,000 in the aggregate, for this policy.
Libel and Slander
The policy covers the legal liability of Governors for libel arising from features appearing in any publication produced in the normal conduct of Luton Borough Council.
It also covers the legal liability of Governors for slander arising out of, and in the course of, meetings of Luton Borough Council or upon any occasion when the Governor is specifically authorised to represent the Council.
There is a limit of indemnity of £2,000,000 in the aggregate, for this policy.
Motor
Governors using their own private vehicles whilst undertaking Luton Borough Council business should notify their Insurance Company or Broker to ensure cover under their policy extend to use of the insured vehicle on Council’s business.
It is not possible for the Luton Borough Council to insure private motor vehicles. Nor will cover be provided for personal or Council-owned property lost or stolen from an unattended private vehicle being used on the Council’s business.
Personal Accident
The policy provides cover in the event of a Governor sustaining bodily injury arising out of and in the course of undertaking Luton Borough Council business, including travel to and from home, and will compensate by payment of benefits in line with Zurich Municipal’s current policy recommendations.
Note: Where cover is not confirmed it should not be assumed that it exists.
Please contact the Risk & Insurance Section on (01582) 547044/546105/546123 or email if you require any clarification.
July 2009