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Committee being liable??


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Please help! 

Our AGM was last week & new members have joined our committee. The chair has passed around the constitution for new members to sign, but mentioned that signing it would make them as an individual liable for the Preschool. None of the new members are willing to sign it, until they're assured that procedures are in place to protect them. We're with PLA & I've tried to read through everything & even tried contacting them to see if; 1- This is really true?? and 2- are covered in anyway by them, or do we need to look at a separate liability cover for the committee? -_-O.o  Thank you xx

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Nor me!!!

Ask me to sing a hundred nursery rhymes, whilst mopping up sick and directing a child to the toilet in Polish, I'm your gal - but I am NOT great at insurance jargon!!

A previous treasurer set it up years ago and I just pay at renewal time :$

I know that it certainly helps me every year at AGM time that I can quote that we have Trustess Insurance and no-body is personally liable.....

 

 

Edited by GingaNinja
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If you are with the PSLA and insure through them your insurance cover changes depending on which boxes you tick on your insurance renewal form. You can choose to add all sorts of extras The basic insurance covers you for public liability and the general running of the setting. HOWEVER if the pre-school was to be found liable for an accident due to incompetence etc! then as a committee group your committee might be held liable and could be sued for negligence. Indemnity insurance should cover your setting for MOST of these situations unless an individual did something really stupid!!!!! (well that's my wording!!)

Have a look at your insurance form and give it a read through...it may be worth spending a bit more money to ensure your trustees are happy and stay with you

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We are a limited by guarantee company and Chairty and also insured with PLA.

My understanding is committee are liable but this is restricted to £1. However that's not including unlawful acts such as fraud etc.

I am the chair and I do explain this to new members but not as detailed or they'd run a bloody mile. Wish I had!

 

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I would definitely read through your insurance Pack, or ring PSLA to get clarification to make sure its right for your setting. Years ago their was a case where a setting did not follow the correct proceedure for dismissing a staff member and she took them to court. The result of which, the committee members had to pay i think £1000 each or in total, i can't quite remember. This lead to the PSLA introducing more cover for committee run settings, where as already mentioned they only pay £1,  unless of course its something serious and they are at fault. So as always with any type of insurance 'You're covered untill you claim' :(

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  • 2 months later...

We are insured through Morton Michel and we have a specific section in there which covers Trustees liabilities, we are insured for this up to several thousands of pounds I believe, as I don't see why people volunteering onto a committee should be held financially liable if something happened to the pre-school, plus if parents thought that then you would never get anyone to sign onto the committee! 

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