Insurance

 

Before we can formally commit to fund your Cydcoed project we have to be confident that your project will be adequately insured. Unfortunately, Cydcoed cannot fund insurance costs. We can help you with where to go for advice on affordable insurance.

Insurance is complex. This note is only a general guide to insurance issues that are most relevant to Cydcoed. You should consult with an insurance broker or company to assess your own insurance needs and identify the most appropriate form of cover.

The basic principle is that we will require sight of proof of insurance (or indemnification by an appropriate third party) that covers the work you are asking us to fund. This is so that we can be sure that the grants we give you will not be wasted if something goes drastically wrong.

Public Liability Insurance is for claims against you by members of the public or other organisations. It is not a legal requirement. However, we require that your activities are covered by Public Liability Insurance. Normally, this has to be for at least £5 million per claim. There is scope to reduce this to £2 million if the project is deemed as low risk. However, most Cydcoed funded activities will require £5M.

Preferably, your group should hold the insurance but it may be possible to arrange for another organisation to indemnify you against claims. We will need to have sight of your current insurance certificate or a letter of indemnification.

Under the Employers’ Liability (Compulsory Insurance) Act 1969, most employers are required to insure against liability for injury or disease to their employees arising out of their employment. Employers must be insured for at least £5 million.

The Health and Safety Executive (HSE) enforces the law on employers liability insurance and HSE Inspectors can check whether companies have employers liability insurance with an approved insurer for £5 million.

HSE produce a free leaflet, Employers’ Liability (Compulsory Insurance) Act 1969 A guide for employers (available at http://www.hse.gov.uk/pubns/hse40.pdf or contact HSE Infoline: 08701 545500, hseinformationservices@natbrit.com).  

If you are an employer you must carry this insurance. If you ask us to fund time of paid staff working on the project we will require you to provide us with sight of your Employers’ Liability insurance certificate.

Even if you only have volunteers you should make sure that they are not acting as employees under contract law, e.g.: if you control when they work or if you pay them more than out of pocket expenses they may be de facto employees. If they are, you may require Employers’ Liability insurance. If in doubt, seek professional advice.

There are several other types of insurance that may be compulsory or advisable for you.

Motor insurance is compulsory if you have any motor vehicles which travel on the public road. In addition, any employees or volunteers that use their vehicles for work (other than to get to and from home and work) must inform their insurers.

We may require sight of your motor insurance if you ask us to fund significant amounts of work using your vehicles.

Other types of insurance not compulsory but usually considered essential for community groups if they are applicable include:

• Buildings insurance
• Contents insurance

• Product liability insurance – if you sell goods to the public.

Discretionary insurance types that may be useful include: trustee indemnity insurance, professional indemnity insurance, employees’ dishonesty (fidelity insurance), business interruption insurance, legal expenses insurance, an e-risk insurance.

It is unlikely that we will require proof of insurance for these.

Cydcoed, Forestry Commission Wales, 26/01/2005

10a Rhodfa Stryd y Masnachwyr / 10a Commercial Street Arcade
Abertylleri / Abertillery, NP13 1DH
01495 320331, cydcoed.admin@forestry.gov.uk