Insurance Protection for Welfare Organisations - Glossary of Insurance Products
PROPERTY
COMPOSITE RISKS PROPERTY INSURANCE
This policy covers physical loss or damage to welfare organisation buildings and contents and insured property as a result of fire, explosion, natural disasters, theft, vandalism or accidental damage. Natural disasters covered include storms, wind, water, flood, lightning and earthquakes. The policy can also be extended to cover gross profits and additional costs to keep the welfare organisation operating, fidelity guarantee, property in transit, machinery breakdown and electronic equipment.
ELECTRONIC EQUIPMENT
This type of insurance covers repair or replacement costs to electronic equipment due to electronic, electrical or mechanical breakdown. The cover can extend to insure costs of reconstructing damaged data media and the increased costs of working for the use of substitute equipment in order to maintain business operations.
EMPLOYEE DISHONESTY (Fidelity Guarantee)
This type of insurance covers the welfare organisation’s money, negotiable instruments, goods or other property against theft, embezzlement or misappropriation by employees.
MACHINERY BREAKDOWN
This class of insurance covers non-maintenance repair costs due to sudden damage. Where larger valued items are insured separately, each item has a separate sum insured representing the estimated maximum repair cost and this is our limit of liability. More commonly, items are not listed and are all insured under a “blanket” policy in which case the limit of liability is the maximum amount payable for repairs for any one machine or item of plant.
A combination of Specified and Blanket cover is available.
MOTOR INSURANCE
Motor insurance can cover all types of sedans, station wagons, 4-wheel drives, utilities, tractors, trailers, buses and other registered vehicles against loss or damage. All drivers are covered, provided the driver complies with the terms and conditions.
The policy also provides $30,000,000 legal liability protection for damage to vehicles and other property belonging to third parties.
LIABILITY
EMPLOYMENT PRACTICES LIABILITY INSURANCE
This policy covers the welfare organisation as well as past and present Directors and Officers and all employees.
The policy covers the following:
- Wrongful refusal to employ an applicant for employment.
- Wrongful failure to promote an employee.
- Wrongful demotion, negligent reassignment or disciplinary action.
- Wrongful termination of employment, including constructive dismissal.
- Sexual harassment.
- Unlawful discrimination which may include discrimination on the grounds of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin; and
- Oral or written publication of material that slanders, defames or libels an employee or violates or invades an employee’s right of privacy.
The term wrongful is defined as meaning unfair or unlawful.
DIRECTORS and OFFICERS INSURANCE
There is a need for this class of insurance for claims made against Directors’ and Officers’ by reason of a wrongful act committed or alleged to have been committed in their capacity as a Director or Officer of the welfare organisation.
It also indemnifies the welfare organisation against any payment it elects to make and is legally entitled to make in respect of any claim made against a Director or Officer.
A wrongful act as defined by our policy is, “any actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission, breach of warranty of authority or other act done or wrongly attempted by any Director or Officer.
Actions may be brought against Directors and Officers by, creditors, members of the public, the trade practices commissioner etc.
PUBLIC LIABILITY
This policy provides a wide range of cover to the welfare organisation for sums which the organisation becomes legally liable to pay in respect of:
- Personal Injury.
- Property Damage.
- Advertising Liability.
The term personal injury most commonly refers to bodily injury, death, sickness, disability or mental anguish.
Property damage encompasses physical damage or loss of property along with loss of use of property even if the property in question has not been damaged.
Examples of advertising liability include libel, slander and infringement of copyright arising from the insured’s goods, products or services.
The policy also provides cover for liability arising out of the client’s products. “Products” means anything which is manufactured, constructed, erected, installed, repaired, serviced, treated, sold, supplied or distributed by the Insured (including packaging and containers) in the course of the business and after it has ceased to be in the physical custody or under the legal control of the insured.
WORKERS COMPENSATION INSURANCE
This class of insurance pays compensation to employees for injuries received during working hours whilst in the welfare organisation’s employ or for work caused illness, such as stress.
OTHER BENEFITS
PERSONAL ACCIDENT and ILLNESS INSURANCE
This policy offers Personal Accident or Personal Accident and Illness insurance for the Board member, employee or administrator of the welfare organisation. Loss of these people from the organisation’s usual activities will mean that there will be a need to substitute the person and pay the market rates for replacement of such personnel.
This insurance provides lump sum and weekly benefits for events caused from an accident or illness. The provisos in the policy wording should be read carefully as they set out the limitations in terms of maximum compensation payable under the policy.
PERSONAL ACCIDENT FOR VOLUNTARY WORKERS INSURANCE
Voluntary Workers Personal Accident insurance provides personal accident protection to volunteers of the welfare organisation assisting in day to day operations.
Lump sum benefits are provided for accidents and typically it covers death, permanent disablement and other listed events. Weekly benefits are also available as are limited medical expenses.
Cover generally is limited to people aged between ten and 80 years of age.
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