Insurance is not a "Get out of jail free" card - if you break the Law your insurance will not cover you. Health and Safety Law is Criminal Law and it's impossible to insure against breaking Criminal Law! It is almost certain that your insurance will not be valid if you break any health and safety regulations.

Several trade associations and unions that have offered insurance packages as a member benefit have recently had the insurance withdrawn or rates increased by astronomic amounts, if a trade association or union offers such a package and the insurance was withdrawn then the trade association or union could be held responsible because a contract with members had been breached, this is a situation that is obviously unacceptable. Other organisations (and unions) offer very cheap insurance as a membership benefit but on further investigation it is often found that the insurance offered is only valid when working with members of the same organisation or union, when working only in the UK and when only doing work that is "recognised" but that organisation or union - these are unacceptable terms and restrictions that are almost impossible to comply with - don't be fooled by these cheap options and offers.

We must also remember that members of a trade association or union carry out a diverse range of jobs with various levels of risk and that no overall insurance package (of the type normally provided as a member benefit) will cover most of these situations.

Insurance companies now expect clients to meet minimum statutory health and safety requirements, a trade association or union is not be able to guarantee that members meet the minimum level of compliance to health and safety regulations that insurers will require for an adequate members package.

These days more people are aware of their legal responsibilities and do not want to take risks or be seen as "cowboys", they therefore insist the companies and contractors they use have all the necessary insurance cover - don't be surprised if your turned down for work because you don't have the required insurance cover - "self-employed" crew should take note!

For the "self-employed" having the required insurance demonstrates a standard and a professional dedication to ones business - to not be insured indicates a "cowboy attitude" and a dangerous liability who's dubious services should not be considered.

Stagesafe urges clients to take out Public/Employers Liability insurance with insurers who are conversant with our industry and offer bespoke insurance packages.

Clients are advised to declare all types of work to be carried out to the insurers, failure to declare may result in the invalidation of the insurance. For "self-employed" crew it is vital to ascertain if the insurance meets all your requirements, ask simple questions like: Am I covered for loss or damage to my clients equipment? Am I covered for work at height? What countries does this insurance cover me in? Am I covered for electrical work? Am I covered for driving?

Self-employed (Freelance) operators who either instruct or supervise other crew take on responsibility for the way their crew operates. If one of the crew you are supervising or instructing suffers an injury, it is then possible for them to sue you for damages even though you do not pay or employ them. Tour, Stage, Production Managers and Crew Chiefs should make a special note of this advice. With the Employers Liability Cover, you will have legal representation for your defence and payment of damages, if they are awarded against you.

Those who use the services of contractors (including self-employed contractors often referred to as Freelancers) should ensure that the contractors you use hold the same level of insurance as your company, for example, if a rental company has £10,000,000 Public Liability Insurance than the company should ensure that it's contractors (including Freelancers) also hold £10,000,000 Public Liability Insurance. This is normally a requirement of the "Bonifide Contractors" clause of your insurance policy, failure to ensure contractors (including Freelancers) have the required level of insurance (or even worse, no insurance) will almost certainly invalidate your insurance in the event of a claim.

The cost of Public/Employers Liability Insurance has substantially increased in the past few years and further rises are expected. There are several reasons for this including uncertainty and a lack of understanding of our industry by insurance underwriters, the September 11th. disaster, an increase in the number of huge insurance claims, the number of individuals and organisations who do not meet minimum statutory health and safety regulations, the proliferation of no win – no fee legal schemes as advertised on TV and changes to health and safety legislation particularly in the area of asbestos disposal. Insurance companies have reacted by increasing premiums and by checking on health and safety competencies of clients.

The Production Services Association have found a scheme that will hopefully reduce insurance costs to responsible members of the PSA who can demonstrate they meet with minimum statutory health and safety requirements, they have already arranged for PSA members to have their insurance upgraded to the same level as their clients at no extra cost. This service is offered by Percission Insurance (Crew Cover) to PSA Members only.

There are numerous other types of insurance that are all relevant, for the self-employed working abroad then medical and repatriation insurance is essential in case of illness. The self-employed will also find unemployment and disability insurance a great comfort, and what would you do if you lost or had stolen your work tools and equipment? Are they insured?

• If you drive or use your car for work, are you insured for driving at work or using your vehicle?
• If you give professional advise and information do you have Professional Indemnity Insurance?
• If you manufacture or supply products are you covered for those products?
• Some insurance is required by law - some by prudence.

With all the other expenses involved in setting up a business, it's tempting to have the minimum insurance required by law - insurance against risks to third parties. However, it makes sense to get adequate insurance to avoid the risk of losing it all.

Business insurance is usually divided into three fields:

• Liabilities
• Property and buildings
• Business assets and equipment (contents cover) .

Employers' Liability

Once one employee is taken on it is required by law that the company takes out Employers Liability Insurance. The prescribed legal minimum is currently [2004] £10m of cover against bodily injury, illness or disease sustained in the course of employment. It is a legal requirement to display (in a prominent position so all employees can see it) a copy of the current Employers Liability Insurance certificate.

Public Liability

Definition:- Legal liability to pay damages consequent upon bodily injury, illness or disease contracted by any other person, other than employees, or loss of or damage to their property caused by the insured. Limit of Indemnity is the maximum amount the insurance company will pay in the event of a claim being made. The limits are usually up to £5m but when working for another company, cover of £10m or more can be demanded.

Product Liability

Product Liability is your legal liability to pay damages consequent upon a defective product being used in the contract. Products liability insurance is a little more specialist. Businesses that supply products to other businesses or the public, from software to machine tools, are at risk if a faulty product causes damage or injury. Manufacturers of a product are usually at risk if things go wrong, but the liability can fall on a supplier if the maker of the product goes bust.

Professional Indemnity

Unfortunately, we live in litigious times. Businesses can be sued, rightly or wrongly, for vast damages over a range of complaints. Professional indemnity provides protection against any action by clients who believe they received bad or negligent services, and incurred a loss as a result. Most professional bodies have professional indemnity cover - in some cases it is compulsory. Anyone who supplies advice or services such as consultancy should consider professional indemnity.

Key Man Cover

Small firms depend heavily on a small number of key people. This cover cannot replace someone, but it can provide short-term financial help to reduce the impact.

Business Interruption

Even minor damage to your property could seriously disrupt your business leading to loss of income and extra expenses. Business interruption insurance will compensate for the short-fall in gross profit together with paying any increased working costs and extra accountants’ fees incurred.

Unemployment or Disability Insurance

If you are ill or disabled and unable to work or if you are sudenly unemployed who's going to pay the mortgage and all the other bills? This is often provided with a mortage package.  

Goods in Transit

Goods in transit insurance covers goods against loss or damage while in your vehicle or when sent by carrier.

Property and Buildings

Buildings and contents can be insured against fire, lightning, explosion of gas and boilers used for domestic purposes without the addition of special perils such as explosion, riot, malicious damage, storm, flood, impact by aircraft, road and rail vehicles, escape of water from tanks or pipes and sprinkler leakage. 'All risks' insurance gives wider cover including any accidental damage or loss not specifically excluded. However 'all risks' will not cover wear and tear, electrical or mechanical breakdown and gradual deterioration which will be specifically stated in the policy document.

The business premises should be insured for their full rebuilding cost (including professional fees and the cost of site clearance) and not just for their market value. You may need expert advice to calculate the rebuilding cost, which often differs significantly from market value.

Business assets and equipment (contents cover)

Your stock should be insured for its cost price without profit. Plant and business equipment can be insured on either a 'replacement as new' or an 'indemnity' basis. If indemnity is chosen, wear and tear will be taken into account when settling any claims.

Engineering insurance provides cover against electrical or mechanical breakdown for most machinery, including computers. By law, many items of plant such as rigging and lifting machinery must be inspected regularly by a qualified person. Insurers can arrange to provide this service.

Contents are usually covered against theft providing there has been forcible and violent entry to or exit from the premises. Damage to the building resulting from theft or attempted theft will also normally be covered. Theft by employees is usually not covered – cover against employee dishonesty can be arranged by a separate policy.

Money insurance is on an 'all risks' basis and covers cash, cheques, postage stamps and certain other negotiable documents. Different limits will apply to money on the premises in and out of business hours, in safes, at the homes of directors or employees and in transit. There may be requirements in the policy relating to safe keys and the method of transit. Personal assault cover may be included, which will provide compensation for you or your employees following injury during theft or attempted theft of money.

EMPLOYERS LIABILITY (COMPULSORY) INSURANCE ACT 1989 - A GUIDE FOR EMPLOYEES

EMPLOYERS LIABILITY (COMPULSORY) INSURANCE ACT 1989 - A GUIDE FOR EMPLOYERS

Please contact your insurance company or broker for up to date information relevant to your particular situation.