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Beware! Not all Public Liability Insurance policies are the same.

Originally posted 3rd March 2016, updated April 2019 

One of our member benefits is great value public liability insurance. As a member you will benefit from PACEY’s group purchasing power and be able to purchase Public Liability insurance for just £29.43. Whilst most childminders know that PLI is an essential part of their business, not everyone's sure of what features make a great policy. Read on...

Q: What is Public Liability Insurance?

A: Public Liability Insurance protects you if you are held legally responsible for the injury or death of a child or a third party, or for damage to third party property during the course of your childcare provision.

Not all businesses are exposed to the same risks so it’s always worth making sure that the cover you take out is tailored to the particular needs of your childcare business.

Q: Why do I need Public Liability Insurance?

A: As a registered childcare professional, you are required by law to have appropriate public liability insurance. It makes sense, because accidents can happen in any setting, however well-run it might be. Good insurance cover, from a reputable provider, means you and your customers - those little ones you care for - are fully protected, even from very large claims.

Here at PACEY we provide our members with Public Liability Insurance in partnership with leading insurance names JELF and Royal & Sun Alliance. Over many years we have perfected the level and type of cover that meets your specialist needs as a childcare professional.

Q: Are different amounts of cover available?

A: Yes, policies are available on the market that offer varying indemnity limits, from as little as £2 million. Yes, £2 million sounds like a large amount, but a young child who has suffered a very serious accident in a childcare setting could be awarded a multi-million pound sum to support them for the rest of their lives.

At PACEY we understand the risks you face. That’s why our policy provides an indemnity of £10 million as standard.

Q: I have noticed a variety of companies offer PLI to childminders. Aren't all policies basically the same?

A: No! Be careful to check that the insurance you are being offered provides all the cover you need. Generally speaking, if one policy is much cheaper than another (or provided "free" with another service) then it is likely to provide a lower level of cover and fewer features. Always check the details carefully.

Check what is expected by your local early years team, too. Some local authorities require you to have a minimum level of cover not provided as standard by cheaper policies.

PACEY’s Public Liability Insurance includes professional indemnity cover automatically to a limit of £100,000, which can be increased upon request. There's strength in numbers, and that means we can offer PACEY's Public Liability Insurance for an annual premium of just £29.43 That’s about 8p per day to meet a legal requirement and protect your business.

Q: I employ staff. Will they be covered by my Public Liability Insurance?

A: No. If you employ staff, or have volunteers or students at your setting, you are required by law to have Employers’ Liability Insurance. An insurer will need to know how many people you employ, and may charge a higher premium for additional staff members.

Good news, though! PACEY offers £10 million Employers’ Liability cover as standard for up to three staff (including the policy holder). Additional staff can be covered for a modest additional premium.

Q: Can I be insured with more than one company?

A: Whilst it is possible to have two policies running concurrently it can cause unnecessary complications, especially if you make a claim.

PACEY’s Public Liability Insurance covers all your needs with one straight-forward policy. Why complicate matters?

Q: Where can I get more information? 

Find out more about PACEY's PLI here

NB This blog post was updated in April 2019 to reflect increased PLI and PPI cover from 1 April 2019.

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