Lorica Insurance BrokersLiability Insurance

What is an adequate level of cover?

Produced by:Robert Kluth BA (Hons) ACII

Chartered Insurance Broker

Director – Leisure Division

December 2012

Lorica Insurance Brokers – our background

How can liability arise?

What cover is available?

What is an adequate level?

Any Questions

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Agenda

December 2012

Insurance Broker, whose Leisure Division specialise in the provision of insurance & risk management advice to the Amusement Industry

Although Lorica Leisure is a new division, key personnel are highly experienced in this sector

Work closely with trade associations, including BALPPA, IAAPA and BIAZA

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Lorica Insurance Brokers

December 2012

Your actions

Your omissions

Your advice

Assumed under contract

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How can Liability arise?

December 2012

Death

Personal injury

Property damage

Financial loss

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How can Liability arise? cont.

December 2012

Public Liability (PL)

Professional Indemnity (PI)

Directors & Officers Liability (D&O)

Legal Expenses

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What insurance cover is available?

December 2012

PL & PI are critical

I wouldn’t be a Director or senior manager of a company that didn’t have cover for D&O

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Which of these do you need?

December 2012

PL provides cover claims arsing from your physical actions

PL will exclude claims arising out of advice, design, specification, survey or direction for a fee

PI provides cover for the above

PI sometimes exclude claims for physical work on site or the sale of any products

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Difference between PL and PI

December 2012

I am only the inspector and the claim would be against the operator

If there is a fault with the ride it should be passed back to the manufacturer

I only inspect small juvenile rides

It is too expensive

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Arguments used as a defence for not having adequate insurance

December 2012

On a large loss everyone that had any involvement with the ride will be brought into the claim, either by the claimant or the defendant’s insurers

Without insurance can you afford to defend your position?

If your insurance cover is inadequate, your insurers could pay out the maximum limit of indemnity and walk away

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Arguments used as a defence for not having adequate insurance cont.

December 2012

Should provide cover for claims arising for both your actions and your advice

Needs to be able to respond to any size of claim that could arise

Needs to satisfy the requirements of your customers

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What is an adequate level of cover?

December 2012

The largest personal injury claim in the UK is £23,000,000 and that doesn’t include any costs!

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What size of claim could arise?

December 2012

The level of care the injured party will require

Cost of the care

Life expectancy

Investment returns

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How is a personal injury claim calculated?

December 2012

With advances in medicine, persons with severe injuries have more chance of survival and can live a lot longer

The cost of medical care increases each year

Investment returns have fallen significantly

The Result –personal injury awards will continue to increase

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How is a personal injury claim calculated? cont.

December 2012

No

If things go wrong, who would be hurt and how extensive would their injuries be?

The claim will be expensive if the injuries are permanent and will result in the injured party requiring ongoing medical care and assistance

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Does the size of rides inspected have any relevance?

December 2012

The suitability of the insurer (financial stability)

Is the limit of indemnity inclusive of cost?

Do any of the contracts you have impose upon you minimum requirements in respect of liability cover?

Do you know what insurance cover your clients hold?

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What other factors need to be taken into account?

December 2012

It is dependent upon precisely the work you do, every business is different. However

The limit of indemnity for PI should be at least equal to that you have for PL

A limit of indemnity of less than £1,000,000 is likely to be inadequate

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What is an Adequate Level of Cover?

December 2012

Your Company may have Limited Liability, unfortunately Directors do not!

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Insurance comes at a cost, but can you afford to be without adequate insurance?

December 2012

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Any Questions?

December 2012