alarm - volunteer risk

VOLUNTEER RISK IN A BIG SOCIETY

By Maureen Dennie & Steven Conway

Speakers

•Maureen Dennie, Insurance Manager, Lambeth Council

•Steven Conway, Partner, Browne Jacobson LLP

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What's driving changeThe three key areas are


Three key areas continued

•Budget Cuts

Lambeth’s financial challenge

The Government's Comprehensive Spending Review gave us a large target to deliver in terms of savings. The savings target for 2012/13 was £29.2million.

Over four years (April 2011 to April 2015) we have to make nearly £95million pounds of savings.

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Three key areas continued Austerity


How is Lambeth responding to these challenges?

•Encouraging more Volunteers within our community to deliver services

•Undertaking a transformation of our culture to become a cooperative council

•Delivering New models of service

•Becoming more like a commercial company

We are now a cooperative council, there is not going back

.Presentation name here | DATE

New models of Service Delivery

One of our 100% volunteer schemes

Snow Wardens - This scheme gives more involvement and control of the services that the community use and the places where they live.

community-minded volunteers help clear snow and ice from local streets and help keep the borough moving during periods of bad weather. We provide training and equipment.

They even have a facebook page.


New models of Service Delivery

Cooperative libraries and community hubs

We have developed 'Community Libraries', run in partnership with the local community who have the power to decide how they are managed, how budgets are spent, and what services the libraries should provide.

It also aims to provide a network of community hubs that offer flexible, economical space for community groups, the statutory sector, social enterprises and small and medium, sized enterprises from which they can operate, co-produce and deliver services.

Financially supported by the council by way of subsidy as opposed to full funding.


Its not just about savings

We are enabling citizens to have control & choice

Do they want it ?

Citizens have a voice and we need to listen. We can no longer commit to providing some services, due to budget cuts.

This has presented unique opportunities to work co operatively.

We have engaged with and supported the community to retain services which may otherwise have been cut. Communities are now actively running these projects.

They have full control of budgets and decisions, is this a good thing?


Liability and InsuranceWhat is our position , what is the impact ?

•Historically the buck has stopped at the council, sue the council first was the ethos

•Some independent services cannot be insured under the councils umbrella.

•Volunteers should be insured via their own insurances not the authority’s.

•Governance – What happens after the first three years?

•This is a risk and a challenge going forward.

•Who if anyone will be liable if this goes wrong – will an SLA suffice

•When does the duty of care end.


Lambeth's solution to the insurance issue

Lambeth are creating a Stand alone trading entity to be up and running by 2014

Community Cooperative Insurance Services

This trading arm will allow us to provide insurance solutions to

•Academies•Cooperative Entities (Service Deliver vehicles )•Community Groups•Other Public bodies



Legal status of volunteers

• Legislation covering voluntary workers

• Legal definition: The Police Act 1997 (Criminal Records) Regulations 2002

“a person engaged in an activity which involves spending time, unpaid (exceptfor travel and other out of pocket expenses), doing something which aims to benefit some third party other than or in addition to a close relative”

relatives.”


Employees v volunteers – what’s the difference?

• Mutuality of Obligation

• Personal Service

• Control


Employees v volunteers - caselaw

Melhuish v Redbridge Citizens Advice Bureau (2004)

Murray v Newham Citizens Advice Bureau (2000)

X v Mid Sussex Citizens Advice Bureau (2012)

McElhatton v McFarland & McFarland (2012)


Risks and potential liabilities - why does this matter?

• Employment law obligations

• Employers’ liability

• Vicarious liability



Neighbourhood Watch volunteer who helped jail drug gang stole £60,000 from pensioner to fund secret cocaine habit



'Fake vicar' accused of stealing £25,000 from mental health charities



Forces charity volunteer jailed for stealing £53,600


Risks and potential liabilities – vicarious liability

English Province of Our Lady of Charity and Trustees of the Portsmouth Roman Catholic Diocesan Trust (2011)

• Special role involving trust, moral guidance

• Church premises used

• Relationship was akin to employee/employer?

• Close connection between work and act?

= vicarious liable for the acts of the priest.


How to manage the risks?

• Put your intentions in writing

• But don't create volunteer 'contracts’

• Health & safety

• Clarify whether they’re covered under the organisation’s insurance


Insurance implications

Travelers: voluntary workers or persons co opted to assist the named insured in connection with the business

Chartis: person volunteering, co opted, seconded or appointed to assist in the business

QBE: voluntary helper, voluntary worker, instructor

Zurich: person who is: volunteering to assist or co opted to assist the insured


Questions?

Maurren Dennie:

t: 0207 926 9846e: [email protected]

Steven Conway:

t: 0207 337 1037e: [email protected]

alarm - volunteer risk

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