No.  There is a general exclusion relating to claims arsing from war, invasion and acts of foreign enemies, but no exclusions applying to terrorism in and of itself.

Income generation activities relate to the provision of services, supplies or products for financial gain to parties ‘outside the NHS’.

‘Outside the NHS’ means parties other than fellow NHS organisations, NHS staff and NHS patients. Note that GPs are not considered to be ‘outside the NHS’.

All income generation activities that fall within the definition of the ‘Relevant Function’ benefit from Directors’ & Officers’ liability cover.

All income generation activities benefit from Employers’ Liability, regardless of whether such activities fall within the definition of the ‘Relevant Function’.

Only certain activities benefit from Public Liability and non-clinical Professional Indemnity cover.

A list of included and excluded activities may be found towards the back of the LTPS Membership Rules [starting on page 86].

The list is comprehensive but not exhaustive, and advice on activities not listed may be obtained via the Helpdesk.

Members have the option to purchase Public Liability and non-clinical Professional Indemnity commercial insurance in respect of activities excluded from the cover.

Members should also remember that they have an obligation under LTPS to declare the types of income generation activities that they undertake.

Commercial firms that provide services for a fee have a liability to clients who sustain financial loss arising from negligence in the conduct of the business.

Professional Indemnity insurance is the means by which businesses protect themselves against such claims.

In the context of the NHS the cover again mirrors the commercial market as far as possible, and indeed in some areas goes further.

Directors’ & Officers [D&O] liability cover is the means by which a Member can protect its employees as individuals.

The same occurrence can give rise to separate legal actions against both the Member and its Board and/or employees.

In the context of the NHS the cover under LTPS is intended to mirror the commercial market, although unlike most off-the-shelf commercial insurance policies D&O cover under LTPS is unlimited in value and carries no ‘excess’.

For the purposes of the cover ‘Directors’ & Officers’ are known as an ‘Indemnified Person’ and defined in the Rules as ‘a Board Member, or a Relevant Person who is not a Board Member’. That definition would include Non-Executive Directors.

D&O liability cover will indemnify the individual against claims for monetary damages or other relief arising from defined wrongful acts, but not any fines or penalties.

Foundation Trusts should note that D&O liability cover will not extend to liabilities in respect of ‘commercial’ activities that fall outside the ‘Relevant Function’.

The ‘Relevant Function’ is the provision of services under the National Health Service Act 1977 and any associated legislation.

Foundation Trusts may purchase additional cover in respect of potential liabilities in respect of activities that fall outside the ‘Relevant Function’.

Not automatically. LTPS covers only a Members’ legal liability, to pay compensation, but Members can face claims from patients in respect lost or damaged personal effects alleging that the Member was negligent and therefore has a legal liability to compensate.

Such claims fall for consideration under the Public Liability cover available under LTPS and the Litigation Authority is happy to investigate these claims in the usual way.

Members should, however, note that the £3,000 Public Liability ‘excess’ will apply.

Alternatively, staff, visitors’ and patients’ personal effects are automatically covered against loss or damage under the Property Expenses Scheme [PES] up to £1,000 per person.  This cover applies regardless of ‘blame’.  However, under PES a £20,000 ‘excess’ applies, so that except in the case of a catastrophic loss it is unlikely there would be a call upon the Scheme funds.

LTPS automatically pays a fixed Personal Accident benefit of £20,000 to Members in respect of employees that are part of emergency callout teams who suffer death, loss of a limb or eye, or suffer an injury that causes permanent disablement from their usual occupation.

The benefit is also payable in respect of any employee that suffers the same consequences following an assault.

Payment of the benefit does not preclude an employee from bringing a claim for damages in negligence against any individual or organisation he or she considers responsible for their injury, including the Member, and the benefit payment cannot be offset against any damages award.

There are no plans to increase the level of benefit, but Members wishing to purchase additional benefits for their employees should note that additional benefits cannot be purchased in the Member’s own name.

However, there are two options available to Members to increase the level of benefits available to employees should they wish to do so.

·               Members may purchase additional benefits, by way of a commercial policy in the name of the employees, using charitable funds to pay the premiums.

Note that Members must establish, via the Charities Commission or other relevant regulatory body, that such use of funds is appropriate.

·               Members may facilitate or arrange a commercial policy in the name of the employees.

The premiums may either be paid by the ‘policyholder’ [the collective employees] and reimbursed, or the Member can pay the premiums direct [provided this is with the recognition and approval of the Director of Finance].

For individual employees the options include:-

·               Obtaining additional benefits through a professional organisation where reduced premiums form part of the membership fees.

·               Purchasing additional benefits with the agreement of the Member and being reimbursed individually.

·               Joining a Voluntary Group Personal Accident Scheme sponsored by the employing Member, where the employee pays the premiums via a payroll deduction [this is more suited to larger groups of employees.

LTPS was extended from 1^st April 2000 to offer protection to employees who are injured in private residences by the negligence of the householder.

If the employee is unable to recover damages from the negligent householder the Litigation Authority has the discretion to discharge the householder’s liability and pay agreed compensation.

Members should note that the Litigation Authority reserves the right to pursue a recovery of any sums paid and Members are required to provide whatever assistance is necessary to exercise that right.

LTPS provides cover in respect of claims against Members alleging breaches of the Data Protection or Human Rights Acts.

This cover is available even where the circumstances giving rise to the alleged breach result from clinical, as opposed to non-clinical, causes.

Members should note that cover in respect of Data Protection Act claims is limited to £50,000 per incident and £500,000 in any one membership year.

LTPS will cover both volunteer community first aid responders and off-duty medical staff from other NHS organisations attending emergency callouts at the Member’s request.  They are treated as 'employees' for the purposes of the Scheme.

However, claims for injuries sustained in a vehicle have one very important difference; namely that the Employers’ Liability cover under LTPS specifically excludes any liability arising out of the use of a motor vehicle [see the previous answer].  This is in line with practice in the commercial insurance market. Employees that are passengers in a motor vehicle involved in an accident must pursue a claim against the negligent driver.

In keeping with all commercial Employers’ Liability insurances LTPS excludes liability for injuries sustained by employees carried in, or entering or alighting, from a vehicle. This reflects the intention of legislators to force motor insurers to pick up road traffic accident claims.

There are, however, exceptions, and listed below are the three most common circumstances where LTPS would cover injuries to an employee in a motor vehicle.

·               Manual handling injuries caused by moving patients into or out of a vehicle.

·               Slips or trips getting into or out of a vehicle.

·               Assaults on employees by patients while in a vehicle.

As a general rule of thumb:-

If the claim is in respect of injuries sustained in a moving vehicle, with the exception of an assault, it is a Motor claim under a motor policy.

If the claim is in respect of injuries sustained in, or getting into or out of, a stationary vehicle, it is an Employers’ Liability claim under LTPS.

If in doubt Members should seek advice via the Helpdesk.

Yes, but there are time limits.

The defined ‘Territorial Limits’ span Great Britain, Northern Ireland, the Channel Islands and the Isle of Man, but cover extends worldwide in respect of both employers’ and public liability risks for staff that are normally resident within the territorial limits but working abroad up to a maximum of six months in any membership year.

‘Product Liability’ cover extends worldwide in respect of products supplied from within the territorial limits.

Members should check that adequate public liability cover is in place in respect of any overseas hospital or premises out of which employees are working, because Members will not necessarily have a liability to employees in respect of events that are out of its control. Members should also note that LTPS does not provide any form of travel insurance associated benefits [such as loss of baggage, medical expenses, repatriation costs and the like] and it is recommended that staff make their own arrangements in that respect, whether or not the Member contributes towards the cost.

Yes.  LTPS will cover Employers’ and Public Liability risks in respect of employees that work from home.

Not in respect of Employers’ Liability claims, which constitute about three-quarters of the claims made under LTPS.

Cover under the Directors’ & Officers’ liability and Professional Indemnity schedules is also unlimited in value.

There are some inner limits against Public Liability cover, such as claims in respect of pollution and the financial loss extension, which have maximum sums payable of £10,000,000 and £250,000 respectively.

Yes.  Certificates of Employers’ Liability insurance are evidence of compliance with the terms of the Employers’ Liability (Compulsory Insurance) Act 1969 and must be displayed in the workplace. Although the NHS is exempt from the Act and therefore has no legal requirement to display such evidence, it is good practice to do so and the Litigation Authority can provide the equivalent ‘certificate’ of cover under LTPS upon request.