Are these the only things not covered?
No, there are other limitations in this Section, but those shown above are the principal ones. Have a look at the policy document for full details. Additionally there are a number of General Exclusions which are summarised later in this Chapter.
Section 4. Liability of the Board to Employees and Other Persons
This section of the Custodian School Protection Policy covers the legal liability of the Board under two principal headings:-
(a) Employers’ Liability and
(b) Public Liability.
Sub-Section A. Employers’ Liability
Employers Liability insurance indemnifies the Board in respect of its legal liability for Bodily Injury to its Employees - teaching staff, secretaries, cleaners, caretakers, etc. - arising out of and in the course of their employment with the School.
How can legal liability for employees attach to the Board?
An employer (ie the Board) may become legally liable if an employee suffers injury as a result of the employer’s failure to take reasonable care in the provision of a safe place of work, in failing to provide suitable and safe equipment, in failing to provide a safe system of work. The employer may also incur a legal liability where one employee is injured as the result of the negligence of another employee.
How does the policy protect the Board?
If an Employee is deemed to have been injured as a result of the negligence of the Board, Allianz will undertake to pay legal costs and expenses and damages which may be awarded by a court.
The maximum amount that Allianz will pay is known as the Limit of Indemnity. The Limit of Indemnity under the Custodian School Protection Policy in relation to Employers Liability is €13,000,000 in respect of any one accident (not any one person) including all related legal costs and expenses.
What is not covered?
The principal exclusions are:-
1: Demolition, construction, alteration or repair of buildings;
2: Work on buildings in excess of 15 meters from ground level or work involving the use of scaffolding (other than mobile scaffold towers);
3: Liability assumed under contract or agreement;
4: Use of motor vehicles;
5: Any fines, penalties, punitive or exemplary damages.
Are these the only things not covered?
No, there are other limitations in this Section, but those shown above are the principal ones. Have a look at the policy document for full details. Additionally there are a number of General Exclusions which are summarised later in this Chapter.
Sub-Section B. Public Liability
Public Liability insurance indemnifies the Board in respect of its legal liability for accidental Bodily Injury to persons (other than its Employees) or for accidental damage to third party property. Indemnity is provided in respect of Bodily Injury to pupils, other third parties, or damage to third party property occurring:-
(a) in or about the School premises and;
(b) away from the School premises
while engaged in a School Related Activity which is defined in the Policy as:-
“any activity usual to a school which is carried out with the full knowledge and authority of and under the control of the board of management / governors of the School or of any other person specifically authorised by them”.
How can legal liability attach to the Board?
Legal Liability (or liability at law) can attach to the Board as a result of accidents arising from:-
(a) defects in the School premises, furniture, equipment or other property;
(b) failure to exercise adequate supervision over pupils;
(c) failure to take reasonable care to avoid accidents to pupils or to other third parties;
(d) failure to ensure that goods supplied (including food and drink consumed on the premises) are fit for the purpose for which they are intended.
How does the policy protect the Board?
If a person (other than an Employee) is deemed to have been injured as a result of the negligence of the Board, the Policy will protect the Board in relation to their legal liability to pay legal costs and expenses and damages which result from any such injury.
The maximum amount that Allianz will pay is known as the Limit of Indemnity. The Limit of Indemnity under the Custodian School Protection Policy in respect of Public Liability is €13,000,000 in respect of any one accident (not any one person) including all related legal costs and expenses, with the exception of claims arising out of a defect in a Product when the Limit of Indemnity is in the aggregate in any one period of insurance.
What is not covered?
The principal exclusions are:-
1: Demolition, construction, structural alteration or repair of buildings;
2: Work on buildings in excess of 15 meters from ground level or work involving the use of scaffolding other than mobile scaffold towers;
3: Any fines, penalties, punitive or exemplary damages;
4: Concerts or other fund raising activities where the anticipated attendance exceeds 1,000 persons, except where conducted within the building of a church;
5: Any fund raising activity not solely for the benefit of the School;
6: Liability assumed under contract or agreement;
7: Liability compulsorily insurable in accordance with any Road Traffic Act legislation;
8: Pollution or contamination other than sudden and accidental;
9: Sexual abuse or harassment;
10: Negligent advice, design, specification, formula or breach of duty owed in a professional capacity by the Insured.
Are these the only things not covered?
No, there are other limitations in this Section, but those shown above are the principal ones. Have a look at the policy document for full details. Additionally there are a number of General Exclusions which are summarised later in this Chapter.
Liability General
Does the Policy cover any accident or incident?
Some accidents are inevitable and it is not sufficient for an accident to have happened for a claim to be successful. The injured party must be able to prove that the injury or damage resulted from the negligent action (or inaction) of another, and that a “Duty of Care” existed.
Who is indemnified by the Policy?
The Policy indemnifies the Insured - defined in the Policy as the School, the Patron, the Trustees and the Board of Management / Governors - all in relation to School Related Activities.
Is indemnity provided to anyone else?
Yes, at the request of the Insured, Allianz will indemnify any parent teacher association, past pupil union, Employee (including teachers) or other person in respect of liability for which the Insured would have been indemnified under the policy if the claim had been made against the Insured.
Are the pupils covered?
The policy indemnifies the Insured in relation to their legal liability for accidental Bodily Injury to all third parties - including pupils.
Does cover apply to pupils on work experience schemes?
The policy indemnifies the School in respect of legal liability in connection with any work experience schemes organised by the School or in which they participate including indemnity to the employer with whom the pupil is placed, in respect of the performance of such work by the pupil.
What about teachers?
As we have said earlier, the policy indemnifies the Insured in relation to their legal liability for accidental Bodily Injury to all third parties - including teachers.
The policy also covers the legal liability of teachers while carrying out their duties as such in connection with School Related Activities.
Does cover apply to parents?
Here again cover is provided under the policy for the legal liability of the Insured in relation to accidental Bodily Injury to all third parties - including Parents.
On some occasions parents act under the direction and control of the Board and, in this capacity, the liability of these parents is also covered. When parents undertake work in such circumstances they are, in effect, acting as Employees of the Insured.
What about FÁS employees
Workers participating in FÁS Schemes - such as Community Employment - are employed by the sponsoring committee who are responsible for arranging the appropriate insurance cover.
Do liability insurance claims always become “confrontational”?
No, many claims are settled without recourse to a hearing in a court of law. However, liability insurance reflects the legal system. Under the present legal system, for any person to succeed in a legal action against a Board, he / she must be able to prove, in a court of law if necessary, that the injury or damage he / she has suffered is as a result of the negligence of another person / party.
In the case of a school, an injured person must be able to prove that the Board or any person acting on its behalf caused their injury or damage.
We are, therefore, involved in legal argument which by its very nature is “confrontational”.
Has the introduction of PIAB changed this?
The introduction of the Personal Injury Assessment Board has had a positive effect on the way in which some cases are settled. (See Chapter 11 - Claims Procedure for more details).
Why does it often seem to us that the insurer is “against us”?
This is the problem with a “confrontational” legal system. Where it is necessary to defend a liability claim on your behalf, we have to deal with the claim as a legal argument and we recognise that, at times, the result is traumatic and difficult for the School representative(s).
We try to be sensitive to this and we do understand the difficulties. Remember that however you feel about the merits or otherwise of any claim we are here to help you.
What is negligence?
Negligence has been defined in law as ‘the omission to do something which a reasonable person would do, or doing something which a reasonable person would not do’
in respect of a person or persons to whom a Duty of Care is owed. In this respect the “reasonable person” is defined as “the ordinary person in the street”. In effect this means that we all owe a Duty of Care to ensure that all our actions are reasonable.
What is meant by the term Duty of Care?
An eminent judge once used the parable of the Good Samaritan to illustrate that in law, as in life, we owe a responsibility to our neighbour. This legal responsibility requires that what we do (or do not do) must be reasonable and causes neither injury nor damage. This legal responsibility is known as a “Duty of Care”.
For example a Board has a Duty of Care to ensure that the premises, grounds, furniture and equipment are safe and free from any defect likely to cause injury or damage.
Failure to take the required Duty of Care resulting in injury or damage may render the Board legally liable to pay for damages and costs.
Who decides Liability?
The law courts are the ultimate arbiters in all disputes. Other cases may be settled out of court on the recommendation of our legal advisors as to award and amount of damages and costs.
Does the policy cover only claims following negligence?
No. The policy covers the legal liability of the Board. A legal liability can arise in Nuisance and Trespass as well but most claims are made in respect of Negligence.
If nuisance is covered, why is it shown in the policy as an ‘Additional Cover’?
In the main body of Sub-Section 4B, the legal liability of the Board to the public is qualified to cover only Accidental injury or damage which implies a sudden and unforeseen happening. Nuisance, in law however, is interference for a substantial period of time with the use of or enjoyment of property or land or a right.
For example, a faulty security alarm or defective security lighting can, if left in such faulty condition over a period of time, cause serious disturbance to neighbours. The point mainly at issue is that the neighbours would be anxious to achieve a cessation of the problem rather than seeking damages.
The limit of indemnity for this additional cover is €2,500,000 in any one Period of Insurance.
Are there any qualifications on the Policy?
Yes. As we have stated, the legal liability of the Board to the public is limited to:-
(a) Accidental bodily injury or disease and;
(b) Accidental nuisance and;
(c) Accidental loss or damage to property.
The word Accidental is most important as it excludes any intentional, malicious, criminal or fraudulent act.
What about legal fees and other costs?
The policy includes all legal costs and expenses incurred in the defence of a claim against the Board as well as damages and costs awarded against the Board. The maximum amount that Allianz will pay, however, is the Limit of Indemnity (see How does the policy protect the Board? earlier).
A person taking legal action against either the School, a teacher or the Board which turns out to be unsuccessful, will be responsible for his / her own costs.
What about court attendance?
Where, at the request of Allianz, any member of the Board of Management / Governors, Trustee, director, officer or any Employee is required to attend court as a witness in connection with a claim, we will pay the under-noted costs to the Board:-
(a) Any member of the Board of Management /
Governors, Trustee, director or officer, School
Principal or Bursar €500
(b) Any Employee €250
What about groups or persons using School property?
The policy protects the Board in respect of its (i.e. the Board’s) legal liability to users of the School Property. Claims usually arise as a result of defects in the premises.
The group or other persons, however, can incur their own liabilities arising out of their activities and they should therefore have their own insurance to cover any such liabilities.
What if the groups or persons using the School Property do not have or cannot get insurance?
It is unlikely that they cannot obtain insurance. What they generally mean is that the cost of insurance cover appears very expensive or is outside their financial means.
Allianz recognises that Boards rely, to some extent, on the finances generated from outside groups or persons using the School Property. The policy, therefore, has been extended to include cover for these groups and persons but the cover provided is limited. For example:-
1: cover applies only to activities which take place at the School Property. Any activities undertaken elsewhere therefore are not covered.
2: Additionally the extension provided under the Custodian School Protection Policy does not provide cover in respect of accidental Bodily Injury loss or damage giving rise to a claim made by any member of the group or organisation against another member of the group or organisation Consequently all outside groups or persons are advised to arrange their own separate insurance cover.
There are more questions asked about liability insurance than any other. The comments which we have made above address the most common ones and others will be answered in later chapters of this guide.
Section 5. Indemnity to Management
This section of the Custodian School Protection Policy covers the legal liability of the School in relation to Professional Indemnity, Trustees, Directors’ & Officers’ Liability, Employment Practices Liability and Fidelity Guarantee:
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, are reported to Allianz during the Period of Insurance and which result from Wrongful Acts which occur either during the Period of Insurance or prior to the Period of Insurance but subsequent to the Retroactive Date.
Wrongful Act is defined in the Sub-Section as:- “any actual or alleged
(a) breach of duty arising from any negligent act, error or omission;
(b) breach of warranty of trust or confidentiality;
(c) libel or slander committed in good faith;
(d) infringement of copyright, patent, trademark or design rights committed in good faith”.
Retroactive Date is defined in the Policy as “the date on which the Insured first effected Indemnity to Management cover with Allianz”.
The Limit of Indemnity (or maximum amount that Allianz will pay) is €6,500,000 in any one Period of Insurance.
In similar fashion to the General Liability cover in Section 4, the Board is protected against damages awarded against the Board or settlements agreed, including costs and expenses incurred.
Why do we need this cover?
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 - refer to the paragraph headed “What is not covered?” under Public Liability above. (See also Chapter 8 - Liabilities of the Board of Management where this cover is explained in more detail).
Who is covered?
The Sub Section indemnifies the Insured - defined in the Policy as the School, the Patron, the Trustees and the Board of Management / Governors - all in relation to School Related Activities.
Is indemnity provided to anyone else?
Yes, at the request of the Insured, Allianz will indemnify any parent teacher association, past pupil union, Employee (including teachers) or other person in respect of liability for which the Insured would have been indemnified under the policy if the claim had been made against the Insured.
What about libel or slander?
An action for defamation can be taken against the Insured 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.
What is not covered?
The principal exclusions are;-
1: Indemnity for any Wrongful Acts which were committed prior to the Retroactive Date
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: Any claim arising from any breach of any obligation owed by the Insured as employer to any Employee;
4: any actual or alleged breach of duty arising from any negligent act error or omission on the part of any Trustee, director or officer which arises solely by reason of the conduct of their duties as a Trustee, director or officer of the School;
5: Any fines penalties punitive or exemplary damages;
6: The first €300 of each and every claim.
Are these the only things not covered?
No, there are other limitations in this Sub-Section, but those shown above are the principal ones. Have a look at the policy document for full details.
Additionally there are a number of General Exclusions which are summarised later in this Chapter.
Sub-Section B. Trustees, Directors and Officers Liability
This sub-section covers legal liability of the Insured arising from any actual or alleged Wrongful Act, provided that claims are first made against the Insured during the Period of Insurance, are reported to Allianz during the Period of Insurance and which result from Wrongful Acts which occur either during the Period of Insurance or prior to the Period of Insurance but subsequent to the Retroactive Date.
The term Wrongful Act is defined in this Sub- Section as:
“any actual or alleged breach of duty arising from any negligent act error or omission on the part of any Trustee director or officer which arises solely by reason of the conduct of their duties as a Trustee director or officer of the School”.
Limit of Indemnity -€2,500,000 inclusive of Law Costs in any one Period of Insurance
What is not covered?
The principal exclusions are;-
1: Indemnity for any Wrongful Acts which were committed prior to the Retroactive Date
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: Any claim arising from any breach of any obligation owed by the Insured as employer to any Employee;
4: Any fines penalties punitive or exemplary damages;
5: The first €300 of each and every claim.
Are these the only things not covered?
No, there are other limitations in this Sub-Section, but those shown above are the principal ones.
Have a look at the policy document for full details. Additionally there are a number of General
Exclusions which are summarised later in this Chapter.
Sub-Section C. 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, are reported to Allianz during the Period of Insurance and which result from Wrongful Acts which occur either during the Period of Insurance or prior to the Period of Insurance but subsequent to the Retroactive Date.
Wrongful Employment Practice is defined in the Policy as:-
(a) unfair dismissal or wrongful dismissal of an Employee;
(b) discrimination (including victimisation) in the employment field against any Employee or any
applicant for employment by the Insured on the grounds of gender, marital status, family status,
sexual orientation, religion, age, physical and/or mental disability, race, colour, nationality, ethnic
or national origins or membership of the traveller community;
(c) refusal to employ a qualified applicant for employment;
(d) failure to offer or afford the same terms of employment, working conditions or treatment;
(e) employment related harassment including bullying of any kind, coercion or intimidating,
offensive or hostile working environment.
Limit of Indemnity - €2,500,000 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;
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: The first €300 of each and every claim.
Are these the only things not covered?
No, there are other limitations in this Sub-Section, but those shown above are the principal ones.
Have a look at the policy document for full details. Additionally there are a number of General
Exclusions which are summarised later in this Chapter.
“Claims Made”
Cover under these three sub-sections of the policy (Professional Indemnity, Trustees Directors and
Officers Liability and Employment Practices Liability) is on a “Claims Made” basis.
What does a “Claims Made” basis mean?
A policy that is arranged on a “Claims Made” basis is limited to claims that are first made and reported to Allianz in the Period of Insurance and which occurred after the Retroactive Date (but refer also to the list of principal Exclusions in the paragraph headed What is not covered? above).
How is a “Claims Made” basis different?
This is best explained by using an example. If a third party is injured in the School a claim may be made two years later. Under Section 4 (Public Liability) the claim will be dealt with in accordance with the terms of the policy of two years previously. Section 4 (General Liability) is said to be on a “Claims Occurring” basis.
However, a claim made under Sub-Sections 5A, 5B & 5C of the Policy (Indemnity to Management) is subject to the terms and conditions under the policy in force at the time that the claim is first made, hence the term “Claims Made”.
Sub-Section D. 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 Board in the embezzlement of money (or property). The Limit of Indemnity (or maximum amount that Allianz will pay) is €100,000 in any one Period of Insurance.
Are there any qualifications?
Yes, the Board must ensure that all School books of account are audited, at least annually, by a suitably qualified person or persons.
There are other qualifications, have a look at the policy document for full details.
What is not covered?
The principal exclusions are:-
1: The first €300 of each and every loss;
2: Any loss or damage occurring prior to the attachment of cover under this Sub-section.
Are these the only things not covered?
No, there are other limitations in the Policy, but those shown above are the principal ones. Have a look at the policy document for full details. Additionally there are a number of General Exclusions which are summarised later in this Chapter.
Section 6. Legal Expenses
Under Section 4 - General Liability and Section 5 - Indemnity to Management, cover is included for the legal costs incurred in the defence of a legal action against the School in connection with a claim.
Section 6 - Legal Expenses allows the Board pursue (or to take) and in certain circumstances defend (see 1(b) below) legal action.
There are two parts to this Section:-
1: Legal costs which may be incurred in connection with a School Related Activity in relation to:-
(a) Pursuit of legal proceedings in connection with:-
(i) a dispute between the Board and employees, past employees or prospective employees.
(ii) a dispute between the Board and any pupil, past pupil or prospective pupil or their parent(s) or Guardian(s).
(iii) damages arising from legal liability.
(b) Pursuit or Defence of legal proceedings:-
(i) Arising from contractual relationships between the Insured and any supplier in respect of a contract for the purchase, hire, sale or supply of goods or services.
(ii) damage caused to School Property or any infringements of the legal rights of the Insured relating to the ownership or occupation of School Property.
The Limit of Indemnity (or maximum amount that Allianz will pay) is €1,000,000 in any one Period of Insurance.
2: The second part covers legal costs which may be incurred in any enquiry or investigation
which may result in a claim under Sections 5 or 6 of the policy. The Limit of Indemnity (or maximum amount that Allianz will pay) is €25,000 in any one Period of Insurance.
In each case cover applies only to legal costs and expenses which are reasonably and properlyincurred by the Insured with the express prior approval of the Company. The cover is also subject to the following special provision:-
“the Company will only accept a claim under this Section if it offers reasonable prospects for success”.
How can claims arise?
The following two examples demonstrate how claims can arise under this section:-
1: The Board may wish to take legal advice when there is a dispute with an Employee or with a supplier of goods or services to the School.
2: The Board may wish to take legal proceedings against a person or persons causing damage to School Property.
Are claims under this section different?
Yes. Under this Section the Board is required to seek permission from Allianz before it incurs costs which constitutes a claim.
Why does the Board have to ask the permission of Allianz before incurring legal costs?
Legal expenses cover was not available for many years, because it was generally thought that no one should be encouraged to take a legal action. With an availability of insurance for legal costs the opportunity for potentially “flippant” actions arises.
Let us use a superficial example to illustrate the point - the Board may decide they wish to defend a case where breach of contract is alleged, even though it is accepted that there has been a definitive breach of contract. Clearly, in these circumstances, it would be unreasonable for the Board to expect Allianz to pay their legal costs.
For this reason the Board must seek the approval of Allianz Before incurring legal costs.
The policy refers to the Appointed Solicitor. Who is that?
Allianz has a panel of solicitors from which you may choose one to represent you. These solicitors are used by Allianz in all liability matters and have been proved to provide excellent service.
Why can’t we select our own solicitor?
You can! The appointment of a solicitor from the Allianz panel is for the purposes of expediting the claim process. However, this does not affect your rights to appoint a solicitor or other appropriately qualified person of your choice in accordance with Article 7 of the European Communities (Non Life Insurance) (Legal Expenses) Regulations 1991.
What is not covered?
The principal exclusions are:-
1: Fines or penalties;
2: Legal Costs and Expenses incurred prior to the approval of and acceptance of a claim by Allianz;
3: Any prosecution deliberately or intentionally solicited by the School or any deliberate or intentional breach of contract;
4: The first €300 of each and every claim.
Are these the only things not covered?
No, there are other limitations in the Policy, but those shown above are the principal ones. Have a look at the policy document for full details. Additionally there are a number of General Exclusions which are summarised later in this Chapter.
Section 7: Personal Accident
This section of the Custodian School Protection Policy covers:
Accidental bodily injury to any member of the board of management / governors, Trustee, teacher or Employee (the Insured Person) as a result of an accident suffered in the course of a School Related Activity.
What are the principal limits?
