Despite implementing robust risk management practices, even the most prepared club, class association, or centre, can find themselves suffering from the consequences of legal disputes and/or alleged wrongful acts. The RYA would strongly encourage you to consider the potential risk to the club, class association or centre, and its management committee. The RYA Legal Team are on hand to assist with this guidance as always.

The RYA and endorsed insurance provider, Gallagher, are happy to advise that RYA groups have access to key additional products which could prove invaluable in the event of a claim or loss.  

Gallagher offer access to products for both Management Liability/ Directors’ and Officers’ (D&O) and Commercial Legal Expenses cover – both of which can help protect your organisation in these circumstances and set you on the road to recovery. You can just consider one of the products only depending on your resources.

An overview of the benefits and key cover differences as follows

As a brief overview, what cover does the policy provide?

Management Liability/D&O - Cover against the cost of legal action and any civil awards arising from alleged negligent or wrongful act on the part of any Committee Member, Director, Officer or Trustee.

Commercial Legal Expenses - Cover for legal costs that occur while pursuing a claim or dispute against the insured 

Does the policy protect individuals or the insured entity only?

Management Liability/D&O - Cover is usually provided to protect individuals from claims but can also be extended to cover the 'entity' for incorporated organisations

Commercial Legal Expenses - Entity only – to include unincorporated organisations

Does the policy provide protection for individual Committee Members, Officers and Trustees for claims made by third parties arising from perceived 'wrongful acts'?

Management Liability/D&O - Yes

Commercial Legal Expenses - No

What are the 'standard' cover limits provided by Gallagher?

Management Liability/D&O - £250,000 minimum, with Limits of £500,000/£1,000,000 and £2,000,000 available upon request (any one claim)

Commercial Legal Expenses - £100,000 with higher Limit of £250,000 available upon request (any one claim and £1,000,000 in the aggregate)

Do these limits include all legal costs/expenses plus awards - where applicable?

Management Liability/D&O - Yes

Commercial Legal Expenses - Yes

Does the policy cover costs/expenses arising from Employment Disputes, Contract Disputes, HMRC/Tax Investigations or Tenancy Disputes?

Management Liability/D&O - No - unless an employment dispute claim alleges wrongful acts/negligence on the part of any one named individual

Commercial Legal Expenses - Yes - these are all covered as standard

Do insurers offer a Legal Helpline to discuss potential issues/disputes?

Management Liability/D&O - No

Commercial Legal Expenses - Yes

Will insurers provide full indemnity even if we choose to appoint our own legal representation?

Management Liability/D&O - No - Insurers will utilise their own designated panel of legal experts

Commercial Legal Expenses - No - Insurers will utilise their own designated panel of legal experts

Do insurers only provide indemnity if they are of the opinion that we will have a 'reasonable chance of success' in defending a situation/claim?

Management Liability/D&O - No

Commercial Legal Expenses -  Yes - Cover is triggered where insurers believe that you have a 50% or greater chance of successful defence

Can the policy be extended to cover 'Crime' risks - such as social engineering?

Management Liability/D&O - Yes

Commercial Legal Expenses -  No

What are the approximate premiums for this policy?

Management Liability/D&O - From £125.36 including IPT

Commercial Legal Expenses - £51.52 including 12% IPT

Whether or not you currently insure with Gallagher, Gallagher would be happy to hear from you with any additional questions on the product benefits and features.

The RYA recommends speaking with Gallagher direct to discuss and determine which product is most appropriate for your organisation.

For further questions or advice regarding insurance, get in touch with Gallagher on the below contact details:

T | 0800 062 2309 E | rya@ajg.com

or the RYA Legal Team

These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements.

Royal Yachting Association is an Introducer Appointed Representative of Arthur J. Gallagher Insurance Brokers Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.  AR67-2023. Exp. 08/09/2024