Whilst it is good practice for all Residents’ Associations to consider having insurance; some do not take out cover mainly due to the cost associated with buying a policy. You may would most probably need public liability insurance for your event or association[s activity. Taking out an insurance policy cover the association over the unlikely event of someone taking legal action if they feel negligence has taken place (i.e. child falls at a fun day, someone trips over boxes on the floor in the hall). A claim can be made against the association.
Before committing to a policy, be clear on the type of cover required and the amount. Always read the small print. There are several types of insurance policy on the market; employers’ liability, public liability, professional liability, buildings insurance. Unless you are an insurance broker you may not fully understand the cover your association requires. If your landlord is the local council or housing association, their insurance department may be able to advise on the type and level of insurance your association may require.
Where an accredited residents association occupies a building owned by the council under a lease, the council will insure the building, therefore the public liability insurance for the activity will be covered by the council.
Shop around for before purchasing your insurance, always consider the pros and cons to the policy you are reviewing and obtain a second opinion if possible. Consider the following points:
- What is the risk covered in the policy?
- Does the quotation cover everything?
- Is there broker fees?
- What are the premiums?
- Are there any conditions (e.g. separate insurance required for activities such as bouncy castle). Check if you have adequate cover still Confirm risks are the same
- Renew the policy on time
See also 'My Community' Starter Pack
Can you recommend any good insurance companies?