ADVERTISEMENT FEATURE - 10 top tips to ensure your insurance cover is doing what is should

In the first of a series of articles Del Sharman, Underwriting Manager at Pound Gates Insurance Brokers, talks about the importance of understanding the insurance cover you have arranged and outlines 10 key things (in no particular order) to be aware of within your own nursery insurance.

In the coming articles Del will provide more in depth case studies on a number of areas highlighted below.  

1. Know your insurer and the nursery insurance market

Having a good awareness of the nursery insurance market will ensure that you have maximum choice when it comes to choosing the right insurance product to protect your business. Once you have made your choice and placed your insurance with one insurer it is important to review the market at least every 3 years to make sure that you are continuing to receive high quality cover at a price comparable with other providers in the market. 

2. Know what you are entitled to

Often insurers will give discounts for positive risk management features. You could save money off your insurance premium where you have taken steps to improve your business or control risk. Here is a quick list of examples that are worth discussing with your insurance provider:

• Trade association membership
• Outsourced health & safety consultants to help manage your obligations
• Any quality programmes or kite marks you have completed/achieved
• Door safety devices fitted (e.g. Fingershield)
• Fire and/or intruder alarm fitted

3. Check your property damage cover

Key things to look out for

• Is your cover on an ‘All Risks’ basis? Typically this would mean that cover would include accidental damage
• Does the cover include subsidence as standard?
• Is your cover for theft restricted to only those incidents involving forced entry to the premises?
• Make sure you regularly review your sums insured to ensure that they are adequate on a replacement  as new basis

4. Have you got cover for outdoor play equipment or equipment regularly taken away from the nursery?

Key things to think about:

• Do you have cover for items that might be taken outside of the nursery (laptops, mobile phones)?
• Do you have cover for fixed outdoor play equipment, play surfaces, canopies and the like?
• Do you have cover for unfixed play equipment left outside overnight?
• Do you store outside play equipment in a shed overnight? Are your insurers aware of this?

5. Do you have Business Interruption cover?

In the event of an Insured loss at the nursery, your Property cover will deal with repairs to the nursery or the replacement of lost or damaged items. However, even relatively minor claims can be very disruptive to your business and could lead to you having to close the nursery for a period of time whilst repairs are completed. Even if you don’t have to close the nursery you may incur additional costs in keeping the nursery open whilst the incident is rectified. Business Interruption provides cover for lost revenue should you have to close the nursery or the increased costs you incur to keep the business open. It can be a vital life line, protecting your business – and your livelihood – when the worst happens.

Check your policy documents to make sure that you have Business Interruption cover in place (sometimes also referred to as ‘Loss of Revenue’ of ‘Loss of Gross Profit’) and ensure that the sum insured and indemnity period selected are adequate.  

6. Does your Public Liability cover protect you against claims for abuse?

As an employer you can be held vicariously liable for acts of abuse committed by your employees. In addition legal liability for abuse is often strict, i.e. there is no requirement to prove that you were negligent as an employer for a claim to succeed.  It is therefore vitally important that you have clarity over whether your Public Liability cover protects you against your legal liability for abusive acts committed by your employees.

What should you do?
As this can be a complex area of cover I would recommend that you ask your insurance provider to confirm this for you.

Note: Our next article will focus entirely on this subject and explain fully how the insurance market responds to the issue of abuse claims and what that means for policyholders.

7. Are you covered for administering medication or first aid to the children?

As a nursery owner you are required on a daily basis to administer medication (both prescribed and non-prescribed) to the children in your care. In addition you would have to administer first-aid in the event of an accident. You may also be asked to carry out more unusual or involved medical procedures for children with very specific medical needs. There are risks to your business if the medication is administered incorrectly or perhaps, not at all. Again, it is the Public Liability section of your policy that would respond to any claim, but only if your Public Liability cover extends to include this risk.

What should you do?
As this can be a complex area of cover I would recommend that you ask your insurance provider to confirm this for you.

8. Are you protected against loss of your registration certificate?

This cover is designed to provide you with protection where, through no fault of your own, you have lost your registration certificate or had your registration suspended. An example might be where Ofsted instructs you to close the nursery for a period of time whilst they investigate an incident which has occurred (or is alleged to have occurred) in the nursery. It is usually provided as a standard cover under most nursery policies with the option to increase the level of cover provided.

9. Commercial Legal Protection – have you got it?

Commercial Legal Protection normally comes in two parts. Firstly there is a 24hr legal helpline which you can use to obtain advice and guidance on any legal matter affecting your business. Secondly, there is an insurance cover designed to pay for a solicitor to represent you (and meet compensation awards made against you for Employment Law claims) for legal situations covered by the policy. 

10. Directors & Officers Liability – have you considered it?

Directors and Officers Liability insurance cover protects company directors, officers and senior managers against claims arising from their decisions and actions taken whilst managing their business. It is important to note that whilst the liability of a company may be limited by its status (i.e. Ltd, LLP, limited by guarantee etc.) the liability that could attach to a director or officer is unlimited. This means that without Directors and Officers Liability insurance if a director is successfully sued his or her personal assets could be at risk.

What should you do?

If you don’t already have this cover ask your insurance provider for a quotation.

In summary, taking a few minutes to understand your insurance policy with give you greater certainty over the cover you have in place and give you the peace of mind of knowing that your business is protected against the unexpected.

In the next article we will start to look at some of the areas covered here in more detail, starting with insurance cover for claims involving abuse.

For more information please and to talk to an expert contact our Early Years Business Support Team today on 0845 271 3262, visit www.poundgateschildcare.com or email childcare@poundgatesib.com.