A number of institutes have recently enquired to the regional membership team about whether or not their council members are covered for discrimination claims.
All local institutes are covered for civil liability under the Professional Indemnity policy; Directors and Officers liability under the Directors and Officers Liability Policy and Employment Practices liability under the Directors and Officers Liability Policy.
The following is covered:
Professional Indemnity: The loss that the policyholder is personally and legally liable to pay on a claim – includes defence/investigation costs,damages, judgements, interest, claimant’s costs and settlement sums – subject to policy limit of £5m. Exclusions include fines and penalties; punitive;exemplary or aggravated damages, contributions (excess) of £50,000 or £5,000 (claim specific).
Directors and Officers Liability: The loss of an Insured Person – subject to policy limit of £5m. Exclusions include fines/penalties and losses uninsurable under English Law.
Employment Practices Liability: The loss of an Insured Person – subject to policy limit of £2m. Exclusions include fines/penalties; matters uninsurable under English Law and future salary following reinstatement; and deductible (excess) of £5,000.
Whilst it should be noted that there exists a potential safety net of insurance cover for discrimination claims brought against local institutes, that is not to say that significant efforts should not be made to improve the education and offering of a local institute council members in discrimination matters in order to fully minimise the risk of potential issues or claims arising.
Please note that if the actions are deliberate or reckless, they may not be covered and liability will fall personally to the local institute council member in question. Whilst the CII cannot give advice on what behaviour or actions are and are not compliant, thought should be given to obtaining the CII’s guidance on potential discrimination issues if in doubt.
There is no guarantee that a claim will be covered under the insurance policy,so prevention of claims is the best form of defence. A key component of this is the use and completion of Equality Impact Assessments for all local institute events and activities.
If the CII does incur costs due to the deliberate or reckless actions of a local institute council member, the CII reserves the right to seek reimbursement of these costs from the member responsible.