Risk & Insurance Services
AIMS OF THE SERVICE (for Schools / Children Centres managed by Schools)
· To provide a cost effective programme of insurance & claims funding
· To provide an efficient claims handling service
· To protect school assets & mitigate losses/claims against schools
· To provide for the professional management of risks to which schools are exposed
· To provide advice/guidance on insurance & risk management matters
· To improve management of risks within schools & develop risk registers
· To liaise with schools to develop/implement risk initiatives to mitigate risks within schools
· To continue to roll-out risk ranking surveys – leading to potential savings in insurance premiums
· To manage internal funds effectively, develop risk-matching funding scheme & reduce potential for claims
PERIOD OF AGREEMENT
1 April 2015 to 31 March 2016
· On 1 May 2013, the Council entered into a Long-Term agreement with the Current external insurers, e.g. property, liability covers (3 year contract with the option to extend for another 2 years). This means that the current insurance arrangement, to include policy numbers will remain unchanged until 30 April 2018.
ACADEMIES
Academy Schools will have to arrange and purchase their own insurance policies, as they are a separate legal entity. The Council cannot arrange this insurance and the Academy should either utilise the services of the Crescent Purchasing Consortium (COC), the services of an insurance broker, or if Catholic Academy contact LACE (Liverpool Archdiocese Centre for Evangelisation) to run the tender process and assist with tender evaluation.
Risk Management Unit (RMU) can assist with collating the relevant information for tender. Once the insurance has been placed, RMU can advise on the policies and provide assistance with claims handling.
PROCESSES & PROCEDURES
· Specialist Insurance Service
· Insurance covers provided within annual charge
· Comprehensive claims service
· Operational risk management service
· Guarantees
SPECIALIST INSURANCE SERVICE
· Arrangement of cover for Schools
· Preparing specifications for tenders, evaluating tenders and negotiating premiums with Insurers
INSURANCE COVERS PROVIDED WITHIN ANNUAL CHARGES
· Buildings & Contents - policy excess of £150k (non VA only)
· Business Interruption (non VA only)
· Contract Works Insurance (non VA Only)
· Employer’s Liability - indemnity limit of £20m
· Public Liability - indemnity limit of £50m
· Official’s Indemnity - indemnity limit of £5m (non VA Only)
· Fidelity Guarantee - indemnity limit of £5m (non VA Only)
· Money (non VA Only)
· Engineering - statutory Inspections / insurance
· School Trips - personal accident / travel
Cover can be arranged for School minibuses for an additional charge, i.e. motor insurance arranged (£100 excess). Please contact RMU for further information.
For further information on the various insurance covers and risk management advice provided to Schools / Children Centres under this agreement, are also available via the Risk & Insurance Pages within Traded Services on EDNet
COMPREHENSIVE CLAIMS SERVICE
· Comprehensive claims handling, covering all claims including all correspondence and negotiations with claimants and/or their legal representatives
· If alternative accommodation is required as a result of an insurance claim, we will make arrangement for emergency funds (non VA Only)
· Guidance notes regularly updated via EDNet
· Training sessions arranged, as appropriate
· Post loss and risk management surveys (Risk Management SLA required by VA schools )
OPERATIONAL RISK MANAGEMENT SERVICE (non VA schools)
· Working with Schools to raise awareness of risks and to develop cost-effective risk control measures
· Risk ranking surveys of Schools to identify areas for improvement
· Analysing and identifying trends in claims history and drawing out implications of specific incidents
· Monitoring external information, such as legal cases, press reports & bulletins, to identify potential risk areas & solutions
· Development of risk management software (JCADRISK) to assist with developing Risk Registers within Schools
· Further development of Risk Initiatives Funding, e.g. 50% match-funding
GUARANTEES
· All claims will be acknowledged within 5 working days of receipt
· All claims acknowledged to third parties within 3 working days of receipt
· For Property & Balance of Risk claims, following the receipt of full claim documentation and agreement of claim, settlement will be made within 20 working days
· Insurance staff available for enquiries and personal callers, Monday to Thursday between the hours of 8.30 am and 4.45 pm and on Friday between 8.30 am and 4.15 pm
· Site visits where applicable, within 24 hours of incident occurring
BENEFITS OF SERVICES
The Council has an extensive insurance programme and is therefore able to spread its overall cost of risk, which ensures that charges to schools are competitive in a fluctuating insurance market. Schools considering making their own insurance arrangements may find, in the event of a major loss that their premiums raise substantially, whereas the Council is able to “smooth” such losses by spreading the risk across a much larger base.
In line with EU Regulations, the insurance cover arranged is subject to a tender exercise at the end of any existing Long-Term Agreements, in order to obtain the most economically advantageous benefits to the School & the Council as a whole.
Support in a major incident - Most major incidents, e.g. fires, is insurance related and if not, have a significant risk management dimension. The insurance and risk function, in conjunction with other departments of the Council / 2020 Liverpool, traditionally co-ordinates the necessary support in what is inevitably a difficult time when continuation of education with minimal disruption is the primary objective.
Day to day support - Risk Management staff will provide essential support of a more routine nature in response to day to day enquiries on insurance and risk management issues.
Good knowledge of local Schools and the insurance / risk management issues they face
Fully trained and qualified staff with many years experience of insurance / risk management
Risk management training (e.g. JCADRISK - risk registers ) is available to Schools
TERMINATION
This agreement runs on a financial year cycle. Termination, in writing, should be given by 28th February 2015. A School can terminate within the period subject to 30 days notice, but not if subject to special status.
Should a School fail to comply with the terms provided or put the Council at significant risk, the Council may choose to withdraw some or all of the insurance covers. In such a case, a termination period of 30 days will be given in writing.
SERVICE RESPONSIBILITIES
· Arrangement of appropriate levels of insurance cover to provide a high level of financial protection against significant risks
· Advice & guidance regarding the submission of insurance claims
· Post-loss support including the assessment of damage to school property & the procurement of, and the supervision of, reinstatement works
· Defending liability claims made against a school arising out of death, injury, illness or loss or damage to third party property
· Arrange inspection of engineering equipment (e.g. Lifting equipment & pressure plant) by competent persons at the required frequency in compliance with statutory obligations
· Promote risk management within schools
QUALITY ASSURANCE
Any concerns regarding the quality of the service should be raised with the Insurance Manager in the first instance. If this is not satisfactory and it is not felt to have been resolved properly, you should write to Katherine Johnson, Divisional Head Audit & Risk, Room 21, Municipal Buildings, Dale Street, Liverpool. L2 2DH
RESPONSIBILITIES OF SCHOOLS REMAINING WITHIN THE COUNCIL’S INSURANCE ARRANGEMENTS
· To report all claims to Risk Management Unit within 30 days of the date of incident, otherwise claims may be invalidated
· Fire & flood claims should be reported on the same day of discovery, so that assistance/guidance may be offered together with minimising losses
· The appropriate claim form to be processed
· To forward unanswered, all letter of claims from third parties within 7 days
· To report to Risk Management Unit all material changes in the value of School property, whether from acquisition or improvement: a material change is any change likely to alter the view on insurance from that held at inception, e.g. new building;
· Provide any information and documentation required in relation to ongoing processing of property / liability claims, as soon as possible, in order to comply with legislative and policy timescales
· To provide assistance during risk ranking surveys or post-loss surveys
· To take all reasonable precautions to prevent or minimise accident, loss or damage. This is a condition of insurance policies
· To ensure that all appropriate risk assessments & materials are in place for the above terms. Failure to provide this may result in loss of cover
· To ensure compliance with all regulations imposed by any competent authority and take all reasonable precautions to prevent or minimise accidents, loss or damage
· Prompt payment (within 30 days) of Service Level Agreement invoices
CHARGES FOR SCHOOLS
Charges to Schools have been allocated on a per pupil basis in previous years; with a weighted premium mechanism introduced based on Schools risk ranking scores - with discounts available – see below;
Due to the success of the School Risk Ranking surveys over recent years, the greater management of risks by Schools, risk initiatives and risk improvements undertaken by Schools, charges remain unchanged for 2015/16 but this will be subject to review nearer to policy renewal
The cost for Risk & Insurance services for 2015/16 will comprise the separate elements as in previous years:-
· Property & all other insurance covers s - a rate of £8 per pupil, based on the latest PLASC allocation (£5/pupil for PFI Schools), with discounts available based on risk ranking category / use of JCADRISK.
· Liability - a rate per £7 pupil / employee, based on the latest PLASC allocation / employee numbers with discounts available based on risk ranking category / use of JCADRISK.
Once the above charges have been assessed, discounts will be applied based on:
· The Risk-Ranking rating of each School, i.e. band category, (discounts of up to 10%);
· Use of JCADRISK software – i.e. appropriate risk registers in place, (discounts of up to 15%).
An estimate of the premiums due for the coming financial year will be sent to individual Schools no later than 28 February 2015, with actual figures to follow, once available.
PERFORMANCE STANDARDS
· Compliance with all relevant financial, administrative and insurance legislation and codes of practice
· The programme will be reviewed annually to ensure or represent best value-for-money
· Claims processed and deal with enquiries promptly, fairly, efficiently and courteously
· Supervision is maintained when any outside agency (e.g. loss adjuster) handles any part of our obligation to Schools
· We will reply to written correspondence within 5 working days of receipt or, where this is not possible, we will let you know when a full response can be given
· Emails requiring a response will receive a response within 24 hours.
· We aim to answer all telephone calls within 20 seconds. A member of staff will be available during normal office hours
SCHOOLS MAKING THEIR OWN INSURANCE ARRANGEMENTS
With effect from 1 April 1999, it has been possible for Schools to opt out of the City Council’s insurance arrangements, and seek their own cover from a commercial provider. However, if Schools choose this option it will not be possible to opt out of some policies and remain with the Authority for others.
It must be borne in mind that if a School opts out of the Council’s insurance arrangements, Governors are responsible for ensuring that all policies that they enter into provide at least the same range of cover to that currently in force with the Council.
Furthermore, it is important to bear in mind the security rating of any Insurer with which you place your insurances. In the event of the failure of the Insurer, e.g. the “Independent Insurance Company”, the governors may become personally liable for claims.
Schools will need to meet the following requirements for insurance covers:-
· Policies must provide at least the same cover to that held by the Authority.
· A valuation must be carried out at the School’s expense before insurance is affected, in order to ensure that a current value for the premises is included on the policy.
· The limit of indemnity should be at least £20m for Employer’s Liability and Public Liability, £5m for Official’s Indemnity; adequate cover for governors’ personal liability must also be arranged. It should be recognised that failure to notify the Risk & Insurance Manager of separate insurances that subsequently prove to be inadequate, could involve governors in substantial personal liability.
· Full details of the insurances arranged must be sent to and approved by the Risk & Insurance Manager prior to inception of the cover, including a copy of the full policy wording / wordings to be used.
· Certificates of Employers Liability insurance now need to be retained for 40 years, and Schools will have to demonstrate that suitable arrangements are in place and documentation retained to comply with this legislative requirement.
· When letting / leasing premises, Schools should ensure that all hirers hold an insurance policy against which any repair cost can be recovered if damage is caused to the School premises during the course of the hire.
BALANCE OF RISKS - NON VA SCHOOLS
INTRODUCTION
This scheme extends the basic cover provided under the Council’s property insurance policy to “all risks” for buildings and contents for which the School is responsible
SERVICE DESCRIPTION
The scheme is administered and funded “in-house” (income from SLA charges) and is supported by a full claims handling service. The scheme includes loss or damage caused by:-
· Vandalism / malicious damage
· Theft
· Flood
· Accidental damage
· Escape of water
· Impact
· Earthquake
· Riot & civil commotion
Claims are met from the pool of premium collected from schools provided that there is no other insurance in place covering the peril that has given rise to the loss or damage.