Civil & Public Liability Insurance: Levels of Indemnity Effective from January 2012

We are announcing changes to the levels of indemnity provided for civil and public liability in the January 2012 edition of News4Clubs, which states:

"Following discussion with our insurers, Perkins Slade Ltd., and with effect from January 2012, we have decided to reduce the level of indemnity provided for civil liability insurance including Financial Loss cover, Libel & Slander, Contractual Liability and Directors' & Officers' Liability cover from £10m to £5m for any one incident (£2.5m in respect of child abuse). The level of indemnity for Public Liability remains unchanged at £10m, continuing to provide cover for a bodily injury where the claimant is left severely disabled or paralysed."

The MCofS decided to adopt these changes for the following reasons:

Civil Liability - new limit £5m (£2.5m for child abuse)

In conjunction with Perkins Slade Ltd. we have evaluated the possibility of a single claim for negligence, made against a club or its members, in respect of Libel & Slander or Directors' & Officers' Liability approaching the £5m limit of indemnity and consider this to be inconceivable. 

Public Liability - no change - limit £10m

By contrast, a catastrophic loss, which would incur a multi-million pound settlement, in respect of a bodily injury where the claimant is left severely disabled or paralysed is likely to be significant. The costs would be incurred in respect of ongoing medical costs and the cost of 24 / 7 domiciliary care which, if the injured party was relatively young and still had a relatively long life expectancy, could easily mount up to millions of pounds.

Published January 2012