finance manual section 5 - insurance 5.1 aims: 5.1.1 to ensure that: there is a clear policy on which items are to be covered b
Section 5 - Insurance
5.1.1 To ensure that:
There is a clear policy on which items are to be covered by insurance,
and the appropriate amounts.
All statutory insurances are in place at all times.
Accurate information is provided to insurers as required.
Procedures exist to ensure adequate insurance is in place for all
students using SUSU facilities – both premises and vehicles.
Competitive prices are obtained for all insurance
Consideration is given to the value for money of carrying different
levels of excess or of self insuring for certain items
5.1.2 The Union pays adequate attention to issues of security for both
people and assets, so as to minimise the likelihood of insurance
claims, leading to increased premiums. The union maintains a risk
register which is frequently reviewed by the board of trustees.
5.1.3 Each Union department is responsible for maintaining risk
assessments and method statements, whenever an incident arises, the
existing RA and MS covering the incident should be made available to
the responsible senior leader for review. Amendments to RA and MS must
be communicated to all relevant staff immediately.
5.1.4 The Union will nominated a responsible person, that person will
be responsible for implanting the H&S policies of the Union on behalf
of the trustees.
5.1.5 As part of the year end routine, the head of Finance will inform
the Insurance broker of any amendments to the cover required in
relation to the trading performance of the Union. This will include
payroll information, turnover and stock valuations.
5.2.1 The Union purchases insurance cover through brokers. Current
SUSU’s brokers are Endsleigh Business Insurance Services and CCV.
These brokers should be reviewed at regular intervals to ensure that
the union is receiving the best possible value for money.
5.3 Insurance Policies
5.3.1 Combined Policy - General Property & Contents
Directors’ and Officers’ Liability
Platinum Personal Accident Policy - AU
5.4 Combined Insurance
5.4.1 Under the combined insurance policy 5 insurable areas are
covered within a single premium, each of these areas have their own
schedule, conditions and exclusions. However there are some exclusions
that will apply to all areas. Namely
Loss or damage caused in Northern Ireland by Riot, malicious damage or
By radioactive contamination
By sonic bangs
By Pollution and Contamination
By the failure of any electronic device to recognise a date correctly
Terrorism is covered by this insurance as additional premiums are
5.4.2 General Property & Contents
This covers Stock, fixtures and fittings and general contents of the
Union. They are insured against Fire,(including lightning), explosion,
Aircraft, Riot, Vandalism, Storm, Flood, Burst Pipes / tanks, Impact ,
Earthquake, Falling trees, Collapse of aerials, escape of oil, theft
through forcible / violent entry / exit, Subsidence, Sprinkler leakage
and Accidental damage.
Damage caused by theft, theft of keys. Fixtures in grounds, Glass,
underground pipes and cables are also covered.
The excess is £150
Value of items covered £1,790,000.
Value of stock is increased by 25% during term time.
Where theft has taken place within the building but not through
forcible entry, the excess is increased to £500.
Sites covered :- Highfield buildings 40 / 42, WSA, NOC, All Halls bars
5.4.3 All Risks
This covers the same items as above but covers anywhere worldwide, and
in transit. Hence it covers the more portable equipment owned by the
This covers the physical loss of money and damage to safes /
strongroom’s as a result of theft.
Damage to persons clothing up to £250 and assault are also covered.
The excess is £250
Money in the possession of professional carriers is not included.
Various limits apply to each safe and till owned by SUSU.
Under this policy the number of able bodies staff required to carry
money is listed as follows
£2000 or less 1
£2000 -£5000 2
£7500 -£10000 4 (3 for internal routes)
Benefits to injured employees also fall into this category if the
injury is as a result of an assault during the theft up to a Max
5.4.5 Employers liability
Cover of £10,000,000 on any one event.
Cover extends to employee as compensation for bodily injury whilst in
the union’s employ and they were acting in connection with the
business. This includes Terrorism ( up to £5m), legal costs, court
attendance. And legal costs of defence of criminal proceedings in
respect of H&S legislation.
Employees, Volunteers, persons on work experience and Sabbaticals.
Cover is not extended to Road accidents, Asbestos or industrial risk
5.4.6 Public and Product liability
Cover of £10,000,000 on any one event.
Covers indemnity for SUSU against amounts which we become legally
liable to pay as compensation to third parties as a result of Death,
bodily injury, damage or accidental trespass or nuisance.
5.4.7 Business Interruption
Cover is extended to the profit normally derived when you are
prevented or restricted from carrying out our business as a result of
an insured event. Maximum claim is 133.33% of the sum insured for a
period of 12 months
Cover is extended where access to premises is restricted due to damage
to a building in the immediate vicinity, A public utility such as Gas
is disconnected for more than 4 hours, and notifiable human infection.
Sums insured = £2,609,000 (11/12)
5.5 Smallcraft Policy
SUSU insure through Endsleigh insurance brokers all waterborne craft
separately. Navigators and General are the insurers. This policy
covers loss or damage to vessels from accident, negligence, theft or
malicious acts including trailers. There is a 3rd party liability of
£3,000,000. The excess on this policy is £150. A list of the items
covered is submitted to the insurers each year and this is continually
updated for new purchases and disposals.
5.6 Directors and Officers Insurance
This policy covers any director, officer, trustee, employee or
volunteer of the Union. It will cover losses that are incurred from a
claim of / alleged wrongful act. This includes breach of duty or
trust, negligence, error, misstatement or omission, breach of
authority, libel or slander. It covers damages, judgements,
settlements and defence costs up to a limit of £1,000,000
This policy also has a fidelity guarantee to cover dishonest acts by
employees, theft of funds at a financial institution and computer
fraud, limited to £100,000.
This does not cover personal fines which may be paid by SUSU subject
to Trustee approval.
5.7 Platinum Personal Accident Policy
5.7.1 Athletic Union
This policy is renewable each October and covers all members of the AU
for personal injuries sustained whilst playing, practising or training
in their chosen sport it covers costs of hospitalisation,
physiotherapy and, travel costs to limited values. Also further cash
payments for more serious injuries resulting in paralysis and loss of
limbs etc are available
5.7.2 Performing Arts
This policy is renewable each October and covers all members of the PA
for personal injuries sustained whilst playing, rehearsing or training
in their chosen activity it covers costs of hospitalisation,
physiotherapy and travel costs to limited values. Also cash payments
for more serious injuries resulting in paralysis or loss of limbs etc,
5.8 Motor Insurance
5.8.1 Insurance of SUSU Vehicles (6 minibuses and 1 van) is undertaken
by the Head of Finance, advised by a locally based Lloyds broker. The
minibuses are covered by a Fleet Shield Policy with Royal Sun Alliance
Plc, which holds a database of all SUSU's minibuses.
5.8.2 In general, the law prohibits people aged under 25 from driving
minibuses, but special dispensation is available for students unions.
A “Bus Permit 19” disc must be displayed on all vehicles at all times
to show that they are subject to this dispensation. Students aged
under 25 driving minibuses hired externally can also be covered under
the dispensation, providing an insurance fee has been paid to the
Accounts Office in advance of the hire (see 5.4.6 below). In addition,
for such hires, a “Bus Permit 19” must be collected from the Accounts
Office and displayed on the vehicle.
5.8.3 The main policy renewal is done in July each year, for
implementation from 1 August. The policy and certificate of insurance
is kept by the Transport Coordinator.
5.8.4 Students wishing to drive a SUSU minibus, or to be covered by
the SUSU insurance policy for an external hire, must complete a
Minibus Driver Registration form and have it agreed by the Transport
Coordinator before they are authorised to do so. The Transport
Coordinator may require a potential driver to undertake a driving test
in the vehicle before registration is approved. For drivers holding
foreign driving licences, additional terms and conditions may apply.
5.8.5 A list of approved drivers is maintained in the SUSU General
Office. Only registered drivers are insured and allowed to drive the
5.8.6 Students hiring these are not required to pay for additional
insurance, since they are covered by the SUSU policy. However, many
groups have to take outside hires. Students make their own bookings,
although the reception has information about firms which are generally
used. Most firms will not allow drivers to use the firm’s insurance
for drivers under 25 years old, so it will generally be necessary to
use the Union’s insurance. To obtain this, an official request must be
signed and the cost of the insurance paid in advance to the Transport
Coordinator. The Transport Coordinator will provide a cover note to
show the hire company that the driver is adequately insured. Drivers
must still be registered as in 5.8.4 above.
5.8.7 The Transport Coordinator keeps a list of all insurance charges
collected from students for outside hires and pays the appropriate sum
to the broker each month.
5.9.1 All incidents giving rise to a claim should be reported using
the Incident Reporting System. The Head of Finance will inform the
Insurance brokers of an incident, and co-ordinate whether them any
information that they might need. This is likely to include incident
reports, risk assessments, method statements, H&S reports if
applicable, loss adjusters, and evidence of costs / losses.
5.9.2 The following will then coordinate claims
Smallcraft: Student Activities
Personal Accident: Student Activities
All other: Finance
5.9.3 Excess The cost of all damage up to a maximum of the policy
excess will be charged to the user of the equipment at the time of the
incident, unless they are unblameworthy.