09/09/2020
3 Common TMO Insurance Claims
If you’re responsible for a tenant management organisation (TMO), housing cooperative or residents’ management association, you’re bound to be aware of the importance of insurance. Not only is it essential protection for the organisation, but it also protects employees and residents.
Having worked with a number of management associations in recent years, we’ve gathered together some examples of common insurance claims, plus some handy advice on the types of insurance you need, along with examples of where insurance – in combination with One Broker support – helped real organisations avoid hefty claims.
Employee Health & Injury Claims
Employees, volunteers and contractors are invaluable resources for any TMO, helping you to manage your responsibilities to your residents. However, alongside the benefits, there’s also the chance of claims being made in relation to their health and wellbeing.
Solution: Employers’ Liability Insurance
An Employers’ Liability policy with adequate levels of cover can help protect your organisation against claims of illness, injury or damage as a result of working for your TMO. Although this policy is a legal requirement, it’s important to ensure you have an adequate level of cover – and that you’ll receive broker support in the event of a claim.
A Real-Life Example:
One Broker handled a TMO claim in 2019 in which an employee sustained burns after using a steam hose to wash down their work boots.
Having followed risk management guidance provided by One Broker when setting up the policy, the TMO had all the necessary Health & Safety paperwork (risk assessments) and training in place. Account Executive Phil Smith visited the site on the following day to take statements and collect evidence to show that the TMO wasn’t at fault.
On this basis, the court threw out the claim. The insurer also removed a £14,000 reserve from the policy at renewal because the TMO hadn’t made any claims.
Employment Disputes
The average reward for unfair dismissal claims in 2018/19 amounted to £13,704*. Could your TMO afford to cover the cost of a potential payout?
It’s important to note that Employers’ Liability Insurance does not cover employment disputes. It only covers illness and injury to workers. As such, it will not provide support in the event of an unfair dismissal or harassment claim, so you would have to cover the cost of legal counsel and compensation yourself.
The Solution: Employment Practices Liability Insurance
Provided as part of a Management Liability policy, this policy covers the cost of compensation awarded in the event of an employment dispute.
When you arrange cover with One Broker, you’ll also have access to a free legal hotline, manned by commercial law professionals. They can guide you through the legal process on a wide range of issues including human resources, health and safety, taxation, money laundering, fraud, bribery, corruption and more.
A Real-Life Example:
One of our clients was unaware they could protect themselves and the committee against Employers Practice Liability claims, even though they had been sued for unfair dismissal by a former employee in the past, with damages awarded running into the tens of thousands.
When they requested a TMO Insurance quote from One Broker, Phil Smith conducted a thorough review of their cover and identified several areas of exposure, including employment disputes. He then advised on the implications of not addressing these issues – before explaining how an ELP policy could help.
Later that year, the estate manager of the TMO was accused of racial discrimination linked to an accusation of unfair dismissal.
As a result of One Broker’s proactive approach, our client had access to professional advice when resolving the situation. With support from Phil Smith and One Broker’s in-house claims team, the client successfully defended the accusations and the claimant dropped the case.
Slips & Trips
Of course, it’s not just employees who can bring claims against your TMO. Members of the public and residents can also make claims for illness, injury and property damage if they feel that fault lies with your organisation. For instance, a slip or trip on a public footpath could result in a claim.
Solution: Public Liability Insurance:
While this makes up part of any standard business insurance, it’s vital to ensure you have an adequate level of protection – along with support from your broker or insurer – in the event of a claim.
A Real-Life Example:
A tenant management client received a claim from a resident who allegedly slipped on some icy stairs in their managed block, some considerable time after the accident occurred.
Our client was struggling to provide the necessary information to the insurers, especially because there was no record of the accident. The client was unhappy to accept the claim but couldn’t produce evidence with which to defend itself.
On hearing of the claim, One Broker lent a hand and conducted some investigative work. By searching for weather reports on the day of the accident – and the temperature – it became clear that the presence of ice was unlikely.
Armed with this additional information, the insurer denied liability. There has been no reply from the claimant and the claim hasn’t been pursued.
Peace of Mind for your TMO
If you’re concerned about your organisation’s exposure to insurance claims, drop Phil Smith a line on 01223 949006. He’ll talk you through your exposure to risks, highlighting any areas that need insurance protection and how you can manage your risks.
* https://www.gov.uk/government/statistics/tribunal-statistics-quarterly-april-to-june-2019
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