Federation of Recorded Music Societies

PUBLIC LIABILITY AND EQUIPMENT INSURANCES

The Federation operates two optional insurance schemes that offer affiliates cover for both Public Liability and Equipment risks.

Cover is offered for both Public Liability and Equipment insurance risks and is available via a blanket insurance policy that is provided by Aviva and administered via the Federation's brokers, Jelf Group based in Cheltenham. The cover is provided by a Commercial Combined Insurance policy, reference no. 23764235CCI

The Public Liability scheme offers affiliated societies and their officers protection against having to find large sums of money in the event that they are sued by third parties and found to be legally responsible for any accident occurring at any of their meetings or events.

The Equipment scheme offers All-Risk cover that ensures, subject to policy excesses, reinstatement or replacement of lost or unserviceable equipment arising from incidents caused by fire, theft or accidental damage.

The cover year runs from September 1st to August 31st. Premiums are negotiated with Aviva on behalf of the Federation by Jelf.

Charges for Public Liability cover are incorporated with the annual re-affiliation invoice prepared by the Federation Treasurer.

Charges for Equipment insurance cover are handled separately and invoiced directly to participants by Jelfs around August each year.

The Public Liability scheme is taken by 75% of affiliates and remains a very competitive facility. As it is commercially sensitive information, details of current premiums are only available by enquiry on application to the Federation Secretary.

Further details of each cover are given on the Factsheets reproduced below.

Further enquiries or applications for new cover should be made initially to the Federation Secretary.
Note for existing participants: Affiliates are reminded that the Insurance Certificate section of their Affiliation Certificate is important evidence of their PL insurance cover, and is especially relevant where they meet in venues belonging to the local or public authority sectors.Secretaries/Treasurers should ensure that this document is carefully preserved for easy reference.

Public Liability section

What is the amount of cover? £5,000,000.

Who is covered? The Federation and its member societies, and whose details have been lodged with the Insurers. The Federation will not include details of any member society that chooses not to pay its contribution.

What is covered? Legal liability in respect of claims (including costs) arising out of (a) accidental injury to any person (this would include death); (b) accidental loss of or damage to material property and (c) accidental obstruction, trespass or nuisance. Anything done with the intention of causing injury etc would not be included.

What is "material" property? In general other people's property. Property owned or hired by a society or one of its members or in general in its or his/her custody or control is not included. Societies should make their own arrangements to insure their equipment etc if they so wish.

Are individual members of societies covered? Yes. Cover is extended to officials, members, leaders, instructors and visitors. This is, of course, in respect of their legal liability - injury to themselves is not directly covered but any injured person can pursue a claim against those he/she believes responsible.

Are there specific exclusions? Yes. Liability for (a) property deposited in cloakrooms and (b) arising in connection with sponsored events, firework displays, bonfires, barbecues and fetes. A society wishing to hold, for example, a summer barbecue should take out its own cover.

What about motor vehicles? Liability arising from the use of motor vehicles is in general excluded. Where, for example, societies arrange for members to be given lifts by other members, liability will be covered by normal car insurance provisions.

What is the excess deductible in the event of any claim? None.

Are there responsibilities? Yes. If anything happens which is or may be the subject of a claim, notice must be given without unreasonable delay. The police must be informed where appropriate. The usual conditions as to minimising losses and co-operating with the insurers and suchlike apply. If a claim or possible claim arises, seek guidance from the Federation.

What if there is a requirement to produce evidence of cover?
This may sometimes arise. For example a Local Authority may request such evidence if meetings are held on its premises. Where applicable, the Federation's annual Certificate of Affiliation also includes a Certificate of Insurance. This will suffice for most enquirers and has been accepted by many authorities but if in doubt contact the Federation Treasurer who can either get confirmation issued or questions answered by our broker, or else can make a copy of the policy available for inspection and return.?

Equipment All-risks section

What is the amount of cover? There is a choice of insured values to suit the requirements of individual societies. Cover is offered in bands of "up to" £1000, £1500, £2500, £3000 and £4000 with variable levels of premium. Insured values are "reinstatement/replacement" values.

Who is covered? Affiliated societies who have opted for participation, details having been lodged with the Insurers. (Special endorsement (SE) 01). There is no cover for loss or damage if an affiliate lends or hires its equipment to another party, e.g. a school or a church.

What risks are covered? All risks, including accidental damage, fire and theft. The property is insured "anywhere in the United Kingdom, including transit". This means that cover is not limited to any one venue nor any one location. The equipment is covered at your normal venue, at any other venue where a society may have decided to use its equipment (perhaps giving a programme to another group), wherever the equipment is stored including in members' homes, or in transit between locations. Please note the exclusions referred to below.

What property is covered? The policy schedule states …….. "Sound Reproducing & Ancilliary Equipment". In practice this means your "hi-fi" equipment, e.g. amplifiers, mixers, CD players, cassette players, mini-disc players, turntables & cartridges, speakers, speaker stands, PA equipment, combined stereo midi systems, etc., and all associated cabling, power leads & extension cables, plugs, sockets, adaptors, headphones and any cabinets in which any equipment may be incorporated.

Are there any specific exclusions?

1/ Strictly …… "theft is not covered unless the equipment is contained in a lockfast building of substantial construction" (SE 03)
In practice this means that equipment kept in locked or unlocked storage within almost any lockable venue building, any alternate building or in members' homes would be covered. The only exceptions would be if the equipment were to be stored in an "unsubstantial" building, such as a domestic garden shed, or if the equipment were to be left unattended, in open premises, and in full public view. A claimant would have to demonstrate that it had taken all reasonable precautions to protect its property.

2/ Strictly ……. "Loss/damage is not covered whilst unattended away from premises, other than from a totally enclosed separate luggage compartment in a locked vehicle". (SE 04)
In practice this means that if the equipment is in a separate boot compartment of a saloon car or in the luggage compartment of a "hatchback" vehicle and hidden by the parcel shelf, then it is covered. Cover could be compromised if left in the visible interior of a locked vehicle. Theft from an unlocked vehicle is NOT covered.

Who administers the policy? This section of the Combined policy is administered in association with the Federation's broker Jelf Lampier at Cheltenham. Changes to the list of participating societies or their insured values are advised either by the Federation or by the societies themselves. In conjunction with a Federation representative, Jelf Lampier prepares the invoices for the premiums and collect the payments directly from the societies.

What is the excess deductible in the event of any claim? For insured values up to £1500, the excess is £50; over £1500, the excess is £100.

Are there any responsibilities? Yes. If anything happens which is or may be the subject of a claim, notice must be given without unreasonable delay. The police must be informed where appropriate. The usual conditions as to minimising losses and co-operating with the insurers and such like apply. If a claim or possible claim arises, seek guidance from the Federation.

These notes have been checked by our Broker for general accuracy, but please note that these comments are for general information and guidance based on our understanding of the policy and do not purport to be an exhaustive or authoritative interpretation of the 33 page document which is available for inspection if the circumstances warrant such depth of enquiry.

Important notes for Affiliates participating in these schemes

Some societies pay, or may be considering paying, for "Public Liability cover" through the operators (e.g. local authority, school, church or community) of the venues where they meet.

Affiliiates are recommended to check the terms of that arrangement very carefully and establish exactly what risks are covered. Although you will probably be well protected from accidents happening as a result of problems with "the fabric" of the venue e.g. roofs, walls, electrics, plumbing, chairs, etc., for which the owner will be responsible, there may be circumstances in which an Affiliate itself may be still be called upon to reimburse the owner's insurance company if the Society itself has been found to be negligent in any way. If there is any doubt, it is recommended that you seek a full disclaimer from the operator.

It will be noted that on both schemes, the policy requires that the "insured" takes reasonable precautions to minimise losses and avoid risks that might give rise to legal responsibility for injury to persons and damage to property.

Most affiliates meet for a couple of hours per week/fortnight/month and use equipment that generally operates at modest levels of voltage, and furthermore is usually in constant attendance for that duration.

There are no specific edicts as to what "reasonable precautions" should be but it has been determined in discussion with our broker that minimum precautions should be as follows.
At each meeting, a responsible society officer should check for badly sited cables and ensure that only experienced people should connect and operate the equipment. At regular intervals an officer should also check all other visible points of concern eg frayed cables, damaged extension leads, loose connections, damaged plugs, scorch marks on equipment, etc. It would helpful if evidence of having conducted these inspections was minuted in the official records of the society.

It is not necessary in order to secure the effectiveness of the insurance policy for the equipment itself to be inspected and thus there is no need eg to take the case off an amplifier and check inside.
Of course, affiliates might wish to have assurances beyond the mere existence of the insurance policy and take more comforting precautions for the protection of their members and visitors by having a proper inspection of the equipment either by suitably experienced members of their group eg a radio technician or an electrician or maybe by an external professional. This is their choice but not doing so will not invalidate the insurance!

If affiliates' equipment is complex or of particularly high value, then they might wish to consider undertaking a basic level of portable appliance testing (PAT). This was designed for the testing of heavier duty workplace appliances but, despite being fairly expensive for most affiliates to undertake, it may be appropriate for specific circumstances.

Use of a residual current device (RCD)(such as those used to protect ourselves from rampant lawnmowers) might represent an additional precaution to protect against voltage interruptions or surges that lead to general electronic problems.

Finally, affiliates should be aware that some hirers of venues include in their conditions of hire a requirement for any equipment used on their premises to have been tested. If a simple assurance that affiliates' equipment had been inspected and was in good working order was not accepted by the authorities then there would seem to be no choice but to follow whatever requirements were being imposed. This would ensure that later problems did not arise with insurers on the grounds that the society had not complied with the landlord's conditions of hire.

 

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