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NEW (22 February 2004): Confirmation of Personal Liability Insurance for ringing outings
1.1 We usually take out insurance to protect ourselves when we run the risk of suffering a financial loss in certain circumstances. In the most simple terms we run this risk in one of two ways. First, we might incur loss or damage to property we own, such as a house, car, boat, factory etc or even our lives, so we would insure property against damage by fire, theft etc and we might take out life insurance. Second, we might incur a legal liability to others for loss, damage or injury we cause them. Such liability can arise in many ways, such as from driving our cars, using machinery, crossing the road, supplying faulty goods or giving inadequate professional advice. Under UK law we all owe a duty to take care not to cause damage or injury to others, and they have a right of redress against us if we are negligent and cause such damage. However, they usually have to prove that we have been negligent in order to make a successful claim against us, and this remains the case if we have insured ourselves against the risk of incurring such a liability.
1.2 There are many different types of liability insurances, in the same way that there are many different types of property insurance. There is motor third party liability (often bought together with property damage insurance as a "comprehensive" policy) and there is cover for our liability as householders to visitors, neighbours and others, usually included with our household policy. Our liability as private individuals to the world at large is usually covered as a separate part of our household contents insurance. (This point is particularly important, and will be mentioned again later.) Businesses will take out insurance to cover their liability both to the world at large arising out of their business, and to their employees arising out of their work (public and employers' liability insurance). If they manufacture products they may take out product liability insurance to cover their liability for faulty products. If they are professionals (lawyers, accountants, architects etc) they may take out professional indemnity insurance to cover themselves against any liability they may have for mistakes or faulty advice.
1.3 So it can be seen that it is not enough simply to believe insurance is needed - those seeking insurance must be clear what the risk is that they wish to protect, and what type of cover is needed. While an insurance broker can give advice and arrange insurance, he cannot be expected to know, or guess, what type of insurance is required.
2.1 Ringers are often interested in personal accident insurance, which is a type of "property" rather than liability insurance, with the "property" insured being the people covered by the policy, and there being no need to establish negligence before being able to claim. Even with this narrow class of insurance, there is a wide variety of ways in which cover can be arranged. Again it is necessary for those buying the insurance to decide what is wanted. The policies all cover death or injuries caused by an accident, and do not cover death by natural causes.
2.2 The first thing to think about is when do you want the cover to apply. If it applies 24 hours a day, whatever the insured person is doing - at work, at home, abroad etc - this will be the most expensive. The more you restrict the period of cover the cheaper the insurance becomes.
2.3 Ringers sometimes want cover to apply just when they're ringing, or perhaps while they're in a church for the purpose of ringing. They may want cover while carrying out a restoration project, or while on a ringing tour. Associations may want to cover all their members for 12 months of the year but just while ringing.
2.4 The risk of being killed or injured whilst ringing is very small. In the UK over 3000 people a year are killed in car accidents, and about the same number again in accidents at home, with many more seriously injured. Then there are accidents at work and playing sports. Are you sure you want to insure yourself whilst ringing but not whilst doing these other things? Are you really worth more dead or injured in one set of circumstances than in another?
2.5 The answer to this can, curiously, sometimes be "yes", particularly if you feel a degree of responsibility for a group of people and want to provide them with instant cash if they are injured in a situation where you are in charge. In this case personal accident insurance may be for you.
2.6 You will then need to consider how much to insure for. Again, this is up to you. A "standard" figure seems to be around £20,000 for death or loss of one or both eyes or limbs, with £200 per week payable for temporary total disablement (ie serious injury) for up to 2 years. These figures (other than the 2 year limit) can be altered to suit your needs, but some insurers are unhappy about giving weekly benefits that exceed the insured person's normal weekly earnings. This is because the main need for any such insurance arises from the need to replace income when unable to work. For the same reason, weekly benefits are often restricted for pensioners, school children and sometimes others who are not in paid employment. Death benefits may be restricted for children under 16.
2.7 It is also possible to extend the benefits (at extra cost) to include more minor injuries, and some policies will just pay out a fixed sum for named injuries, rather than a weekly payment. For instance, broken leg: £1000, loss of toe: £500 etc.
2.8 The more people there are in a group to be insured the cheaper the premium will be per person. Also minimum premiums of between £50 and £150 will apply to any policy taken out, whether personal accident or anything else.
3.1 The other type of insurance popular with ringers is public liability. Some associations hold annual policies, or cover can be effected for specific events, such as training courses or restoration projects. For a broker to get a quotation he will need to know full details of what is going on, particularly whether any lifting equipment is being used, and the experience of the people involved. The policy should cover the liability of the Association and all its members, and include what is known as "member to member" liability, so an injured member is not precluded from claiming if the injury is caused by another member.
3.2 How much cover should be bought? This is difficult, because in the worst case most dreadful scenario liability could run to many millions of pounds. In practice ringers rarely insure for less than £1 million or more than £5 million.
3.3 Rather like most car insurance, public liability policies generally contain an excess, or an amount you have to pay yourself. This usually applies to property damage only and may vary between £100 and £250 for each accident or incident.
3.4 Remember that the third party must prove negligence before he can claim against you. There is no automatic right to payment under liability policies. All insurance has terms and conditions and exclusions, and an almost universal exclusion of public liability policies is an exclusion of cover for damage to property being worked on. This could mean that if you drop a bell and break it there is no cover for the cost of re-casting the bell. If you drop it on someone and injure them, the policy will respond to a claim from that person for injury regardless of the fate of the bell.
3.5 Have you remembered that your household contents policy (if you have one) probably covers you for your liability as a private individual (para 1.2)? This will cover most normal ringing activities, provided you are not running a business as a bell hanger etc. Normal hobby activities are covered by this provision. If you are not sure, or you are doing something really exceptional, or if you are being paid to help professional builders or bell foundries you should check the position with your insurer. It may not be necessary to take out special additional cover. However, your private insurance will not cover any liability the Association may incur.
4.1 Ringers sometimes want to insure other property, such as a library, bookshop, badge of office etc. They may also risk incurring other types of liability, such as when advising parishes on the state of the bells or on work needed. It is a good idea to make clear in these circumstances that you are advising only as experienced ringers and not as builders, architects or bell hangers. If you are asked for written advice, consider making this clear in writing, and possibly finding a friendly solicitor to look over the advice before it is given. It is not possible for amateurs to obtain professional indemnity insurance and you could potentially have a problem if you were to say, for instance, that certain work would put things right, and it doesn't.
5.1 Most parishes, cathedrals etc will carry a variety of insurances, which will almost certainly include public liability insurance. Ask whether this policy would protect the ringers if a liability claim were to be made against one of them individually. Usually cover would apply while on that church's premises and additional cover should not be necessary. Churches often also have personal accident insurance, which will state who is covered. Again the local ringers are often included but the benefits are generally extremely small - perhaps £1000 for death or major injury with no weekly benefits. Also the benefit may be payable to the PCC in the event of a claim, rather than to the injured ringer. Check the local position.
5.2 If you want special insurance at your church it is worth asking the church's insurer for a quote. Sadly many specialist church insurers tend to be rather conservative and reluctant to help, in which case an insurance broker should be approached.
5.3 It is not usually wise to rely on any insurance held by your parish church to cover you while you are away from that church. In the same way as you wouldn't expect your employer's insurance to cover you while you are at home, so your church's policy may not cover you elsewhere unless you were specifically acting on their behalf, and possibly at their request. Check if you are not sure.
5.4 Redundant churches and secular rings of bells are unlikely to be tied in to "normal" insurance arrangements, and if you are concerned, you should enquire about insurance.
6.1 Before looking to take out any insurance, remember to be sure what cover you want or need - do you actually really need any at all? If so, be clear what type you need, and the amount of cover you want. It is always worth checking first what insurance is already in place and exactly what existing policies cover.
For further information, please contact Mrs K. Flavell
Published in The Ringing World 4666 (September 29, 2000)/ p962