Types of
Insurance
There
are a number of different types of insurance which we may require
suppliers and contractors to have.
Public
Liability – provides an indemnity against claims made by a
third party for damage, injury or disease caused by acts of
negligence. It also covers any related legal fees, costs and
expenses.
Employers
Liability – covers the cost of compensation and legal fees
for employees who are injured or made ill at work through the fault
of the employer.
Product
Liability – covers the company against any compensation
awarded as a result of damage or injury caused by their product. A
product is defined as any physical item that is sold or given away
and so a company delivering a service does not necessarily have to
have Product Liability insurance.
Professional Liability (Professional Indemnity
Insurance) – Protects the company against compensation
claims made by a client for financial loss or damage if the company
has made a mistake or are found to have been negligent in their
professional capacity. It also covers any legal costs.
Minimum values of
insurance cover should be assessed on a contract-by-contract
basis.
Commercial
Outlets Insurance
The Council
insures all of its’ properties currently with Zurich Municipal
Insurance under a standard fire policy. The cover is for
fire, and the full range of special perils including subsidence and
full terrorism. The excesses are at the normal level of
£250.00 except for subsidence which is £1,000. The lessors
are generally responsible for the excesses that apply in respect of
each claim.
However the
exception is Plate Glass insurance. This is totally self
insured for which a nominal premium is included in the leasing
arrangements.
The sums insured
are as assessed by the Council’s Valuation Officers and are
revalued on a rolling basis. Otherwise the values are
increased annually in line with rate of inflation for reinstatement
of buildings. Loss of rent cover is also in place where this
is applicable for either 12 or 24 months depending on the terms of
the lease.
Claims
Claims should in
the first instance be notified to the Asset Management Section but
are then handled on behalf of the Council through the Insurance
Section. Depending on the size, approved Loss Adjusters will
also be engaged by Insurers of the Insurance Section.
Liability
Insurance
It is a condition
that all contractors or users of the Council’s facilities must have
liability Insurance with a minimum indemnity of £5m. It must
be placed with a company of repute and evidence of the cover must
be produced if required. This applies to both public and
professional liability where applicable. Employers Liability is not
a Council requirement. This is a requirement by Act of Parliament
and currently the minimum indemnity stipulated is also £5m.
Please
note that it is not a requirement of the Insurance Section
regarding Liability Insurance, it is a council
requirement.
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