Broadform insurance

Preamble

Over the years there have been many questions on this issue. The following is an explanation in layman’s terms which I hope you will all find useful.

The legal documents on which you can rely are firstly the CGU Product Disclosure Document, and secondly the Certificate of Currency (including the Schedule of Insurance) issued by Webster Hyde Heath. Both documents have been provided to the Network Groups previously, and are available on request.

This information is of a general nature, and is not to be relied on as advice. The author is not a licensed Insurance Advisor, nor are any of the members of The Management Committee of The Guild.

Who is covered?

Refer to the INSURED section of the Schedule of Insurance (Certificate of Currency).

The first point to note is that the cover is provided in two tiers.

  1. Tier 1 covers members of the Hand Weavers and Spinners Guild of NSW Inc. (The Guild)
  2. Tier 2 covers members of network groups (Named Affiliated Clubs).

A network group is referred to (but not defined) within the Rules of the Guild. Effectively any group of spinners and weavers or associated crafts who desire an affiliation with the Guild.

When are you covered?

I refer you to Business Description within the Schedule of Insurance.

“Principally common interest group – hand weaving and spinning and associated crafts including workshops, organising exhibitions, open days, Back to Back Wool Challenge, Fibre Musters and any other occupations incidental there to or associated therewith, including ownership and / or occupancy of premises.”

That is:

  • at regular meetings
  • at your regular premises
  • at workshops / classes
  • at exhibitions / events / markets

We have previously requested clarification on the members demonstrating and selling goods at markets. Provided that this is a bona fide event run by the Guild or the network group, (collaboratively as a group of members) you are covered. If you are running an event individually, under a trading name or as a business then you are not covered.

What are you covered for?

I refer you specifically to section 1 of the CGU Product Disclosure Document. “You are covered for your legal liability to pay sums” etc.

Using the terms most people use:

  • Public Liability relates to an injury to a member of the public at one of your meetings / events. We assume that member of the public seeks to bring an action against you either as an Incorporated entity or individually if your network group is not Incorporated.
  • Product Liability relates to an injury to a member of the public from a product made by / sold by you at one of your meetings / events. Again we assume that the member of the the public seeks to bring an action against you.
  • Goods in Custody. If you were to break a window in premises you hire – or if you have goods in custody at an exhibition and they are damaged / stolen.

You are covered for “your legal liability to pay sums” related to that incident.

How much Cover do we have?

I refer to section 2 of the CGU Product Disclosure Document, and to the Limit of Liability section of the Certificate of Currency

Public Liability, the cover to a maximum of $20 million for any claim, or series of claims arising from a single event. That is if there is an incident with a network group exhibition, then the cover is a maximum of $20 million. If the following week there is an incident at a different exhibition/demonstration, then the limit of the liability at that second incident is still 20 million (a second $20 million). There is no limit to the number of incidents that can occur in a year – each one of which would be covered to a maximum of $20 million.

Product Liability, the maximum cover is $20 million. This is a separate $20 million from the Public Liability. The difference is that this is a maximum value across all for Product Liability claims on an annual basis, across the Guild and network groups, within a single year. That is, if previous Product Liability claims within a year have already been assessed at $2 million, then there would only be $18 million left for further claims within the same year.

Goods in Custody, the maximum cover is $250,000. As with the Product Liability, this is a maximum value across all for Goods in Custody claims on an annual basis, across the Guild and network groups, within a single year.

Each Claim is subject to a $1,000 excess.

What else do you need to consider?

You should ensure your membership current. It is the responsibility of individuals and network groups to maintain their membership in order to maintain their insurance cover.

Further Questions

If you have further questions, please feel free to refer to our Insurance Broker.

Webster Hyde Heath

PO Box 780
Kent Town SA 5071

39 William Street
Norwood SA 5067

P: 08 8362 5553
F: 08 8362 5788