Insurance Arrangements Overview

Partner organisations are expected to have appropriate insurance arrangements in place.

These will include:

Employers Liability Insurance
Product Liability Insurance
Public Liability Insurance
Professional Indemnity Insurance

Minimum recommended insurance coverage is indicated in the table below (to be completed).

Insurance Type	Minimum recommended coverage	Overview and Comments
Employers Liability Insurance	£5m	You must get Employers’ Liability (EL) insurance as soon as you become an employer - your policy must cover you for at least £5 million and come from an authorised insurer. EL insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you. You can be fined £2,500 every day you are not properly insured. You can also be fined £1,000 if you do not display your EL certificate or refuse to make it available to inspectors when they ask. https://www.gov.uk/employers-liability-insurance EL insurance is required to cover the activities of freelance workers and volunteers as well as employees
Product Liability Insurance	£2m
Public Liability Insurance	£2m	Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities. Public liability insurance covers the cost of compensation for: personal injuries loss of or damage to property death Policies vary from insurer to insurer, but most public liability policies cover you for: incidents that occur on your business premises incidents that take place off-site, at events or activities organised by your company You should consider public liability insurance if: you own business premises that members of the public, customers or clients visit your business organises off-site events or activities that are attended by members of the public for more information see the ABI's guide to planning an event you run a business from your home and people visit your home for professional purposes Public liability insurance covers anyone, apart from employees, with whom you interact as part of your business operations such as: people visiting your business customers clients people taking part in events or activities you have organised people watching events or activities you have organised Public liability insurance does not cover employees, temporary staff, students or people on work placements – for this you need employers’ liability insurance. https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/business-insurance/liability-insurance/public-liability-insurance/
Professional Indemnity Insurance	£2m	There is concern within the insurance industry regarding the level of cover required for retrofit work. See Professional Indemnity page.

6.1 Professional Indemnity Insurance

Professional indemnity insurance, also referred to as PI insurance, is a type of cover to protect your business if you provide designs, specifications, advice or instructions as any part of your job. If any of your recommendations or advice have caused a financial or reputational loss for a client and you’re found to be at fault, this is insurance cover that will indemnify you against liability
All companies that provide professional services, recommendations or advice should invest in professional indemnity insurance.
When would you need professional indemnity insurance?

PI will protect you if something you’ve done or recommended in the course of your work results in a financial loss for your client and they decide to take you to court. It can take a while for the issues caused by professional consultation/bad design to come to fruition Investing in PI will help to mitigate the consequences of any legal action which may arise.

How much professional indemnity insurance do you need?

This depends on the type of business you run, the kind of work that you do, and the scale of the contracts that you work on. Professional indemnity can protect work you’ve done in the past, so the level of insurance you need will depend on how established your business is and how much of your previous work you want to protect.

[to be confirmed – this is for DPPR] It is required that to operate under LEAD each Partner should hold Professional Indemnity Insurance that covers a minimum £100,000 including maintained cover for 6 years on a simple contract, and 12 years on a deed.
Naturesave has notified ECOE, TEC and others that the insurance industry is uncomfortable with the risk associated with providing retrofit advice. It has been agreed that we should work with Naturesave and a panel of insurers to discuss this; and help the insurance industry understand the work that we are undertaking, and the level of risk involved.
We will progress this in April 2024, and invite participation from Partner organisations as required.