INSURANCE FOR CENTRE-BASED CHILDREN S SERVICES

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1 Resource Sheet INSURANCE FOR CENTRE-BASED CHILDREN S SERVICES Designed for Outside School Hours Care (OSHC) and Long Day Care (LDC) Acknowledgement This resource was developed by Community Child Care (CCC) with funding provided by the Australian Government Department of Education, Employment and Workplace Relations under the Inclusion and Professional Support Program ( ). The Inclusion and Professional Support Program is funded by the Australian Government Department of Education, Employment and Workplace Relations. As of 1 January 2013, Gowrie Victoria commenced as the Professional Support Coordinator (PSC) for Victoria. Gowrie Victoria is committed to ensuring continuity of quality support to services and has commenced a planned transition to ensure this occurs. As part of this transition, and in partnership CCC, services can access a number of resources as developed by CCC.

2 INSURANCE FOR CENTRE-BASED CHILDREN S SERVICES Insurance provides some protection against potential costs and damages arising from legal action, accident, personal injuries, building and property damage. Centre-based children s services require a range of insurance policies, and the type of insurance you need, how much insurance you need, and how to get the coverage you need, will depend on services you provide. Under the Family Assistance Legislation, Section 17 of DEEWR s funding agreement (approval for Child Care Benefit) for education and care services asks that applications have the following insurance with an insurance company authorised by the Australian Prudential Regulatory Authority or, in the instance of a self-insurer, you warrant that you have the following insurance: Public liability for not less than $10 million for each and every claim; Workers' compensation as required by law; Professional indemnity for not less than $5 million per claim and in the aggregate, in a year. (This is unless you are not required to have professional indemnity insurance in relation to an Activity which is an outside school hours care, long day care, family day care or in home care service) If you subcontract any of your obligations under the Agreement, you must ensure in relation to each subcontract that either the subcontractor has insurance policies which comply with these requirements, or your insurance policies provide coverage in relation to the subcontractor which complies with these requirements. Services that receive kindergarten funding or run occasional care funded through the Victorian Department of Education and Early Childhood Development (DEECD) will receive automatic insurance to cover them in the following areas: professional indemnity public liability products liability

3 medical malpractice property damage directors and officers liability Long day care services should also consider purchasing the following types of insurance: public liability professional indemnity directors and officers liability (for community- owned services) personal accident insurance for volunteers property damage fire and theft glass money insurance car insurance (for damage resulting from work related activities) fidelity guarantee electronic equipment workers compensation (WorkCover) Outside school hours care (OSHC) services operating in Victorian government schools are often covered by the insurance arranged by the DEECD. School councils and employees of school councils are also covered in this agreement. OSHC services operating in Catholic Schools are often covered by Catholic Church Insurances Limited (CCI). Centre based children s services should ensure they have adequate insurance coverage for all aspects of operation. The types of insurance coverage that may be required falls into three categories: Property Liability Other benefits

4 Property Property damage and building insurance: catastrophe property insurance composite risk property insurance accidental damage, burglary/theft, business interruption, fire and perils, glass breakage, loss of money, portable property construction insurance electronic equipment fidelity guarantee machinery breakdown motor insurance major property exposures Liability public liability professional indemnity directors and officers liability (for community-owned services) employment practices liability workers compensation insurance (Workcover) Other benefits personal accident insurance for volunteers personal accident insurance for excursions personal accident and illness insurance

5 Type of insurance Property damage and building insurance Catastrophe property insurance Glass Fire and theft Money insurance Motor vehicle insurance Fidelity guarantee Electronic equipment Description This insurance will be needed if your organisation owns or is purchasing a building. It is also worth considering if your organisation is allocating funds to renovations on a building that is not owned by you. The insurance should provide coverage for fire, flood, impact and accidental damage suffered during the emergency Provides for reinstatement and/or replacement, initial clean-up costs and any temporary building replacement. Replacement and/or reinstatement of furniture and fittings and other standard facilities. Permanent replacement or reinstatement can occur after consideration of specific issues. Also covers all fire and major storm damage. This could cover internal and/or external windows. Check whether this is included by your building insurance. This should cover losses resulting from burglary (i.e. theft following forced entry) and fire resulting from other risks (i.e. storms, malicious damage, explosion etc). There are several different types of money insurance. You will need to decide the extent of cover that is appropriate for your organisation. Typically, money insurance aims at protecting you against loss resulting from having money in transit, money on the premises and money held in transit at a private residence. Motor vehicles owned by the service and registered with VicRoads must be comprehensively insured. All drivers are covered as long as they comply with the policy terms and conditions. Check with your insurer about the use of private vehicles on official business. The vehicle must be registered and drivers must have a current driver s licence. This insurance covers fraudulence or misappropriation of funds, goods and other property. Organisations that are registered as co-operatives must take out fidelity insurance. This insurance is additional to standard contents insurance, since some policies

6 Type of insurance Description covering contents to not necessarily extend to electronic equipment such as computers and photocopiers. It can also extend to insurance for loss of data. Public liability Professional indemnity Directors and officers liability Personal accident and illness insurance Personal accident insurance for volunteers Workers compensation This provides insurance against legal liability for personal injury and/or property claims made by third parties as a result of an occurrence in connection with your business. This insurance should be regarded as compulsory for any organisation that has contact with the public. This insurance indemnifies the insured against third party claims resulting from any act, omission, or error in the delivery of professional services, or in the failure to deliver professional services. Professional indemnity is concerned with the provision of accurate information and advice. This indemnifies directors and/or executive officers of the organisation against third party claims for wrongful acts, including actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission, breach of warranty or authority or other wrongful act. It protects the personal liability of committee members or directors should a claim be made. It indemnifies the service against any payment it elects to make and is legally entitled to make in respect of any claim made against a director or officer. This insurance provides lump sum and weekly benefits when an employee needs to be replaced due to illness or accident. Provides income protection, medical and death benefits to volunteers, in the event of an accident occurring while performing voluntary labour or travelling to and from the location for voluntary labour. (You should ensure that the role of the volunteer and the extent of their responsibilities have been properly documented so that relevant activities are approved and will be covered by insurance.) It is compulsory for all employers in Victoria to be covered by workplace injury insurance as these compensation entitlements for injured workers are guaranteed. If you employ workers and you pay or expect to pay more than $7500 a year in remuneration (includes wages, benefits and superannuation)

7 Type of insurance Description or you engage apprentices or trainees you must have a workplace injury insurance policy. This can only be arranged through WorkCover. It is designed to provide income protection for employees who are injured or ill resulting from employment. Contacts and resources Department of Education and Early Childhood Development Phone: Free Call: Catholic Church Insurance Limited Phone: GPO Box 180B Melbourne Vic Victorian Managed Insurance Authority Phone: (03) Australian Prudential Regulation Authority Phone: National Insurance Brokers Association of Australia Phone: (02) Insurance Council of Australia Phone: