Why Adequate Insurance is Crucial for Community Building Volunteers
Community buildings, the heart of many local areas, thrive on the dedication and hard work of volunteers who generously donate their time and skills, ensuring the smooth operation of these vital spaces. It’s, therefore, essential that your community building insurance policy protects them. We often receive questions from village hall committee members about the differences between Employers’ Liability and Personal Accident insurance, as they can sometimes be confused. While both can apply in similar situations, they provide distinct types of protection. Please read on to find out more!
Employers’ Liability: A Non-Negotiable
A crucial component of any community building insurance policy is Employers’ Liability coverage. This is often included as standard in policies designed for village halls and similar venues. Importantly, this coverage extends beyond paid employees to include trustees, committee members, and volunteers – regardless of whether they receive compensation for their time. This safeguards everyone involved in running the building.
Who is considered an “Employee”
The definition of “employee” can sometimes be confusing, as it could be interpreted to only mean a paid employee. However, the definition stated in insurer’s Policy Wordings for community building insurance will usually include Volunteers, Committee Members and Trustees. It also often includes self-employed individuals who work under your direct control and supervision, and whose work is connected to your organisation’s activities. They may have their own Public Liability cover in place, but if not, depending on the circumstances they may be included under the Village Hall policy.
Employers’ Liability vs. Personal Accident: Understanding the Difference
A common point of confusion arises when distinguishing between Employers’ Liability and Personal Accident cover. While both offer protection, they each serve a unique purpose. Employer’s Liability protects your organisation by covering legal costs and compensation if a committee member, employee or volunteer is injured as a result of your negligence. Personal Accident, however, is a benefit rather than a traditional cover, offering direct financial support to the individual regardless of fault. While Employer’s Liability focuses on legal responsibility, Personal Accident provides goodwill payments to aid recovery, ensuring well-rounded protection for both your organisation and its people.
Personal Accident: Filling the Gaps
While Employer’s Liability Insurance protects the organisation against claims, Personal Accident Insurance is designed to support individuals directly. It provides financial benefits to employees, committee members, and volunteers who suffer an injury while carrying out committee duties, regardless of fault. For example, if a volunteer is injured at the hall and is unable to work as a result, this cover can offer a regular cash payment to help offset lost income. In more serious cases, such as death or permanent disablement, this would provide larger lump sum payments to offer additional financial support. However, Personal Accident cover does have its limitations, many policies exclude individuals under 16 and may offer reduced or no coverage for those over 65.
Personal Accident: In Practice
Consider a committee member who sustains an injury while setting up for an event at the hall. If this injury prevents them from working at their regular job, Personal Accident Insurance would provide support in the form of a fixed weekly payment to help cover their lost income. In cases of severe injury leading to permanent disability, or even death, the policy would pay out a lump sum to offer financial assistance to the individual or their family. This type of cover ensures that volunteers and staff have an extra layer of protection when unforeseen accidents occur.
Protecting Your Volunteers is Protecting Your Community
Volunteers are the backbone of our community buildings. Ensuring they have adequate insurance protection isn’t just a legal requirement; it’s a moral imperative. By understanding the different types of coverage available and how they apply to volunteers, you can create a safer and more secure environment for everyone involved in keeping your community building thriving.
