Fact sheet number fourteen

Contingency Malpractice & Public Liability cover for Companies, Corporate Bodies or Groups/Associations as entities


Our scheme insurance provides cover directly to the teachers/instructors and therapist that provide the service.  However, many such teachers while self-employed as individuals are engaged or deployed by another ‘agency’, such as a Centre, Studio or Franchise company.

Where this relationship exists, it may not be sufficient for the teacher alone to have Malpractice and Public Liability insurance because the aggrieved customer/client/ student /patient intent upon pursuing a claim, may seek to do so against that party with whom the class or treatment was arranged, as well as the instructor/therapist involved.  By arranging Contingency cover you can ensure that your vicarious liability is indemnified in case such a claim is made against you or your organisation/centre/company etc.

Contingency cover – the cost

The cost is based upon your working turnover and assumes that all regular instructors have their own individual insurance in place.  However, the contingency cost is a fraction of the standard individual rate payable for all regular teachers, as might be expected.

Other extensions to consider

For those considering Contingency cover there are two additional options that might also be useful and which can be included within the same policy: –

  1. Public Liability Premises Liability – suitable for people that need cover for activities undertaken from their premises but who don’t require a separate business insurance for a studio or centre
  1. Guest Tutor Liability – suitable for those who make use of other instructors on an occasional and irregular basis only and who may not have their own individual cover

Other Commercial Insurance requirements – talk to us

If you also require cover for Employers Liability, Business Interruption or for the contents of a studio or centre, or indeed the building itself we would be happy to help.  We have quite a number of these Commercial Combined type policies on our books already and as more and more people elect to work from their own bespoke premises, we expect to be increasingly busy with this type of business.  Please do speak to us for general advice or if you need specific help.

NWW – Dec 2012