It has come to the attention of NAHT that in a number of localities, members have discovered that their central local authority insurance policy does not cover employment disputes. In these instances, this has referred to both settlement and/or associated legal costs.

While in some areas it may have always been the case or may be something that has been implemented for a number of years, we believe some schools may be unaware of this position, as it may not have been clearly communicated as part of any notification relating to changes to the cover provided or may only be detailed in the fine print, which would require some careful investigation.

What does this mean for my school?

The approach in every insurance scheme will be different, and therefore we would encourage members in the first instance to confirm whether the insurance you have covers the costs associated with employment disputes. You can raise this question directly with your provider (or local authority, if purchasing your insurance cover through them).

We recommend that you ask this in writing and get a written response. Some suggested text is as follows:

Dear X

I am writing to you to ask a specific question in relation to our insurance cover. Given the importance of the question, I should be grateful if you would respond to this query in writing within 10 business days.

The question is whether the cover provided extends to employment disputes and specifically whether this extends to both settlement and/or associated legal costs – and what is the limit of this cover? Please confirm the answer to this question and direct me to the wording of the policy that relates to this so I can understand where this provision sits in the documentation. If the cover does not extend to this, please provide me with details of when this approached changed and the information provided to us to understand this change in our cover. Please also provide details of how this can be covered from now on including details of any additional costs.
 

If you discover this is not provided for in your cover, then we would suggest that you explore adding additional insurance cover just for this area and/or seek alternative options once your insurance is up for renewal. In the meantime, it would be best practice to mark this on your risk register as a possible liability and highlight to your governing board.

As changes to insurance provision can have significant impacts on schools if an issue arises, we would also recommend asking your provider to give you a list of any changes to the cover you have before renewal. This will allow you to establish a baseline of cover that you’re happy with and then be alerted to any changes to that position going forwards.