We were contacted by one of our Swim School Insurance customers who had been asked by other swim schools if they recommended BGi.uk Insurance, which she of course did. One of the swim schools said they weren’t sure if the policy BGi.uk offered was comprehensive enough and our customer asked us to clarify some details for her.
This is our Director, Nick Elwell’s, response:
Unlike other brokers in this market we arrange a number of different policies to suit each client’s individual and commercial requirements rather than squeezing the client into the restrictions of a single policy arranged for the convenience of the broker or underwriter.
The word ‘Comprehensive’ is a dangerous buzz-word often misused in insurance parlance. I believe it originated to simply identify ‘Third Party Motor Insurance Policies’ from those offering cover for ‘Damage to Own Vehicle’. However, the third party policy may include Legal Expenses, driving other cars, driving in Europe, and allow others to drive your car – which may all be excluded from the Comprehensive Policy; making the ‘Third Party Policy’ more ”Comprehensive’ than the other.
Some Swim Teacher policies boast of offering liability cover of “up to £20,000,000”. This might sound impressive but the limit itself is often misunderstood. Whilst it is unthinkable that a swim teacher could cause this amount of damage/injury, group policies are often underwritten such that the liability insurance provided to all the members is capped at £20.0m collectively: not each!
Each policy we write is designed to suit the specific requirements of the client’s situation and activities. We use three different insurers and a dozen or more policy wordings.
Below are the questions the customer raised and the Director’s Response.
- Are there any exclusions?
Yes. An insurance policy is a contract. All contracts have exclusions. Typically, there are two types of exclusion:
a. General Exclusion. e.g. War Risks
b. Specific Exclusion. e.g. Claims first notified in the USA
- They said teachers need to hold their own insurance, Is this correct?
We have insured you as a business. Whilst working for you, your teachers are insured by you on a “Fully Insured” basis (as opposed to a contingent liability basis which might be cheaper but not as [dare I say] comprehensive).
- Does our policy contain professional indemnity and indemnity to principals?
- Does it exclude losses through the provision of advice?
This is professional indemnity.
- Does it include member to member liability cover?
Member to Member cover is usually only required when you have a group policy covering all of the members. A rugby club, for example, would need member to member cover so that one member would be protected under the policy from a claim from another member he (or she) injured in training. You are not a club and have not been insured on a club basis.
BGi.uk is always be happy to talk to any individuals or businesses about their specific insurance requirements or in general terms. Insurance should not be clouded in mysticism. It is a legal contract and whilst the language used is not ‘familiar’ to everyone it is relatively straight forward.
For more information call BGi.uk on 01367 246130