Village hall insurance: what the committee must have

Committees ask this question because the answer they get from insurers is "you need all of it", and the answer they get from the law is almost silence. Both are true. The law makes one cover compulsory. Everything else is compulsory in a looser sense: without it the hall cannot hold a licence, take a grant, let to a commercial hirer, or survive one serious accident.

The covers at a glance

Employers' liability: the one the law requires

The Employers' Liability (Compulsory Insurance) Act 1969 requires any employer to insure against injury or illness suffered by employees because of their work, for at least £5 million. If the hall pays a caretaker, a cleaner, a bar manager or a bookings clerk, even part time, even casually, the hall is an employer. The certificate has to be displayed where employees can see it, or made available electronically, and insurers must offer at least the statutory minimum; policies are usually written at £10 million.

Volunteers are not employees in law. In practice most village hall policies extend the employers' liability section to volunteers, because a volunteer hurt while setting out tables can still sue. Check the wording says volunteers are covered, and under which section.

A hall with no paid staff at all has no statutory duty to hold employers' liability insurance. Many still do, for the volunteer cover.

Public liability: not statutory, but not optional

No Act requires a village hall to hold public liability insurance. Four things do:

• Your governing document and the Charity Commission. Trustees must protect the charity's assets and act prudently. Running a public building without liability cover is hard to defend as prudent.
• Funders and councils. Grant conditions and council leases almost always specify a minimum, commonly £5 million or £10 million, with the council named as an interested party.
• Licensing and events. Many licensing authorities and event organisers ask to see the certificate.
• Your own exposure. If the hall is an unincorporated charity, a claim the charity cannot pay can be pursued against the trustees personally. A CIO or company limits that, but does not remove the need for cover.

Check that the policy describes what the hall is actually used for. A policy written for a quiet community room may exclude a weekly bar, discos, bouncy castles or fireworks. Tell the insurer about regular activities, and ask before a one-off that is out of the ordinary.

Buildings and contents

If the hall is leased from the parish council, the diocese or a landowner, the lease usually says who insures the building and for what. If the committee owns it under a trust deed, the trustees' duty to protect the asset does the same job. Either way the sum insured should be the full cost of rebuilding, including demolition, professional fees and VAT where it applies, not what the building would sell for. Many halls are underinsured because the figure was set years ago and only the premium has been reviewed since.

Contents cover should include hirers' equipment only if the policy says so. Usually it does not, and the hire agreement should say that.

Trustee indemnity

Covers trustees against personal liability for honest mistakes made in running the charity. It does not cover dishonesty or recklessness. A charity can pay for it from its own funds under the Charities Act 2011 without asking the Commission, unless the governing document forbids it. For a committee of volunteers who did not sign up to personal risk, it is a modest premium for a lot of reassurance, and it helps recruit trustees.

Hirers

Two kinds of hirer, two answers:

• Private hirers, such as a family booking a party, cannot reasonably buy their own cover. Most hall policies include a hirers' liability extension that covers the hirer's own liability to the people they invite. Check it is there, and that it applies to the kinds of event you take.
• Commercial hirers, such as fitness instructors, dance and drama schools, caterers and market organisers, should hold their own public liability insurance and show you the certificate before the first booking. The hire agreement should require it.

What to check at renewal

1. Rebuild cost reviewed in the last three years, not just the premium.
2. The activities list matches what actually happens in the hall now.
3. Employers' liability certificate displayed and in date, if you employ anyone.
4. Volunteers named as covered, and under which section.
5. Hirers' liability extension present, and what it excludes.
6. Public liability limit meets your largest funder's or council's requirement.
7. Any conditions the insurer attaches: alarm tests, electrical inspection, fire risk assessment, a capacity limit. Those conditions are where a claim gets refused. Keep the records that prove you met them.

Common questions

Is a village hall legally required to have insurance?

Only employers' liability insurance is required by statute, and only if the hall employs anyone, including a paid caretaker or cleaner. Everything else is required by something other than the law: the lease or trust deed, the terms of a grant, hirers, or the trustees' duty to protect the charity's assets.

Do volunteers count as employees for employers' liability?

Not in law, but a volunteer injured while working for the hall can still claim, so most village hall policies cover volunteers under the employers' liability section. Check the policy wording says so.

Is public liability insurance compulsory for a village hall?

No statute requires it, but a hall without it is one accident from being unable to pay a claim, and for an unincorporated charity that claim can land on the trustees personally. Grant funders, licensing authorities and hirers routinely require it. Treat it as essential.

Should hirers have their own insurance?

Commercial hirers, such as fitness instructors, dance schools and caterers, should hold their own public liability cover, and the hire agreement should require it. Private hirers, such as a family booking a birthday party, are usually covered by the hall's policy for the hirer's own liability; check your policy's hirer extension.

Can we pay for trustee indemnity insurance from hall funds?

Yes, provided the charity's governing document does not forbid it. The Charities Act 2011 allows it without Charity Commission consent, subject to conditions on what it can cover.

How much cover do we need?

Buildings for the full rebuild cost, not the market value. Public liability of at least £5 million is the common floor, with many funders and councils asking for £10 million. Employers' liability must be at least £5 million by law, and policies are usually written at £10 million.

A plain-English summary for committees, not legal or insurance advice. Policies differ; the wording of yours is what counts. Specialist village hall insurers and your county's rural community council can advise on the specifics.