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Allianz School Insurance Ireland

Section 5 - Indemnity To Management

This section of the Policy covers the legal liability of the Board of Management only. It is really a Section of three parts:


Sub-Section A - Professional Indemnity

This sub-section covers legal liability of the insured arising from any actual or alleged Wrongful Act in connection with a School Related Activity, provided that claims are first made against the insured during the Period of Insurance and reported to the company during the Period of Insurance.

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What is not covered?

The principal exclusions are:

 1. Indemnity for any Wrongful Acts which were committed prior to the Retroactive Date (the date on which the Insured first effected Indemnity to management cover with the Company)
 2. Indemnity in respect of any Wrongful Acts committed after the Insured had knowledge or reasonable grounds for believing that a person had been involved in any Wrongful Act
 3. Indemnity to any person committing any intentional dishonest, fraudulent, criminal or malicious act
 4. Any claim arising from any breach of any obligation owed by the Insured as employer to any Employee
 5. Any fines, penalties, punitive or exemplary damages
 6. Any claim involving asbestos
 7. The first €300 of each and every claim.

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Are we not already covered under Public Liability ?

Cover under the Public Liability sub-section applies in respect of accidental bodily injury or accidental damage to property. As such any legal liability for financial loss not resulting from injury or damage is not covered under Public Liability. Additionally, liability due to negligent advice or breach of duty owed in a professional capacity is excluded under the Public Liability Sub-Section.

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Who is covered?

The sub-section indemnifies the Patron, Trustees, Board of Management and members of the teaching staff in relation to their legal liability arising out of or in connection with School Related Activities.

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Claims against the Board for assaults by teachers

The Board of Management may be sued in respect of a criminal act committed by a member of staff or other employee. It must be remembered, however, that no insurance policy will cover a criminal act and no protection is afforded to the alleged perpetrator. It can, undoubtedly, be argued that any assault is committed outside the scope of the employment of the perpetrator but nevertheless an action could be taken against the Board of Management.

The Board of Management is only covered by the policy in such circumstances provided that they had no knowledge of the misconduct or any grounds for believing that it was taking place.

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What about Libel and slander ?

An action for defamation can be taken against the School, the Patron, Trustees or any member of the Board of Management in relation to the written (libel) or spoken (slander) word. Note that cover is limited to libel or slander committed in good faith. Deliberate or malicious comments etc are not covered.

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Can you give an example of how the cover operates ?

It may transpire that the school secretary, for example, has been misappropriating school funds. The theft takes place over a period of time and is discovered as a result of an audit. Indeed it is imperative that school books are always professionally audited.

The policy covers any loss up to €65,000. Every effort must and will be made to recoup the loss from the guilty party.

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Sub-Section B - Employment Practices Liability

This sub-section covers Legal Liability of the Insured arising from any actual or alleged Wrongful Employment Practice in connection with a School Related Activity, provided that claims are first made against the Insured during the Period of Insurance and reported to the Company during the Period of Insurance.

Limit of Indemnity - €1,000,000 inclusive of Law Costs in any one Period of Insurance

What is not covered?

The principal exclusions are.

 1. Indemnity for any Wrongful Employment Practice committed prior to the Retroactive Date (the date on which the Insured first effected Indemnity to management cover with the Company)
 2. Wrongful dismissal or suspension of an Employee or change in terms of employment where established procedures and appropriate legal advice were not followed
 3. Liability arising from Bodily Injury or loss of or damage to material property
 4. Any fines, penalties, punitive or exemplary damages
 5. Claims involving asbestos
 6. The first €300 of each and every claim.

Sub-Section C: Fidelity Guarantee

Fidelity Guarantee provides cover against the dishonesty of an employee, member of the Board of Management or other person acting on behalf of the School in the embezzlement of money (or property).

The Limit of Indemnity (or maximum amount that the Insurer will pay) is €65,000 in any one Period of Insurance.

What is not covered?

The principal exclusions are.

 1: The first €120 of each and every loss
 2: Any loss or damage occurring prior to the attachment of cover under this Sub-section.

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