Indemnity Insurance Information

As well as the core policy cover the additional benefits available through the ANZASW scheme represent real value to members, not the least of which is the independence it affords them in the event of a problem arising. Their employers, on the other hand, may not see this independence in the same light as it reduces the employer’s control over the employee at a time when the employee might otherwise be particularly vulnerable and dependent on the employer. In fact the primary driving force behind the establishment of ANZASW’s cover was a situation where two employee social workers were denied access to the employer’s indemnity policy and had to face a claim over their professional competence unprotected by insurance.

ANZASW has arranged indemnity insurance on behalf of members since 1995. The Insurance Broker acting on behalf of ANZASW is Crombie Lockwood Insurance Brokers based in Wellington.  Attached is some information with regards to making a claim:

 


Important Notice for Student Members

Student members of ANZASW completing supervised practicum placements as part of their social work education programme are covered by the ANZASW Indemnity Insurance during the placement. Students undertaking casual, formal or part time social service work to supplement their income while studying are covered by the ANZASW Indemnity Insurance providing the work they do is supervised in accordance with their workplace supervision protocols. 

With the coming introduction of new legislation it is more important than ever that Social Workers insurance provides the protection they need.  The introduction of the Social Workers Registration Legislation Bill will change many of the core dynamics of being a Social Worker.  At its heart the Bill changes registration requirements, accountability and responsibility.  These prescribe the way Social Workers act; and the simple fact that they represent change equates directly to a rise in exposure for members.  Those that are not cognisant with the requirements of the new legislation, or those that continue to “carry on as before”, may find themselves in breach of the new law and subject to penalty or censure.

Your members have an insurance advantage.  There are many ways that your members will be better off with the insurance they receive as part of their ANZASW membership. Some of these are:

  1. Uncertainty. Any new law creates uncertainty as it is bedded in and becomes common practice.  The new law will contain changes, some obvious and some with ambiguous meanings and nuances.  The impact of these will not be immediately known and there will be little case-history or precedence upon which to reflect and judge.  All this leads to greater uncertainty and therefore greater risk for Social Workers.  Insurance is invaluable during these times and all your members have it –automatically!
  2. ANZASW is working closely with Crombie Lockwood to understand the legislation and determine how this might impact member’s risk exposure. Only ANZASW insured members receive the benefits of this direct engagement.
  3. ANZASW insurance is managed by specialists and is uniquely for ANZASW members. In addition members have immediate access to the Legal Advisory Panel. The panel’s early involvement will help members should they need to address exposures created by the new Act.  And it’s free!
  4. The Legislation changes or updates compliance structures, audit and reporting requirements. Insurance needs to be updated to accommodate these.  This is automatic for ANZASW insured members thanks to the work carried out by ANZASW and Crombie Lockwood.  Any changes in the policy to accommodate new job descriptions, occupations or activities will be taken care of.  This ensures ANZASW insurance remains active, current and relevant.  Automatic for your members!
  5. The legislation may change interactions with Employers. It is not certain how the new legislation will work between employer and employee.  Only ANZASW insurance has special provisions to engage when matters appear to be employment related but are in fact related to the delivery of professional social work services.
  6. Your Employers may provide cover. Do you know if this covers you, how this covers you and if it has been updated?  The insurance for ANZASW members is personal to each member.  Your members don’t need to rely on their employers supporting them.

Encompassing all of this is that we know that the ANZASW insurance contains the widest cover and comes at an exceptionally low cost for members.

In conclusion – all Social Workers will have an obligation to study and be aware of the new legislation and how it may affect them.  From a risk and insurance perspective your members will be better off than non-members, as much of this work is being done for them by engaged, specialist agencies.  The cover, cost and service outcomes will be superior; and all at no direct cost to your members.

Non-members will need to achieve this on their own.  Good luck with that!

ANZASW’s constitution requires all competent (i.e Full) members to be provided protection by the Association’s member indemnity policy, but this has been extended to all other membership categories.  The current insurance policy (and premium etc) is arranged/agreed pursuant to this. The benefits to members of having their own insurance protection, even for employed members whose employer has an indemnity policy, include:
  1. Greater certainty of protection. Comment: the employer may or may not have complied with the conditions of their own policy – it may in fact not be renewed.
  2. The ability to mount one’s own defence independent from the employer. Comment: Often enough in the event of a claim the interests of the employer and employee may be somewhat disparate.
  3. Availability of one’s own limit of indemnity. Comment: the employer’s insurance may be exhausted in defending itself.
  4. Additional unique benefits – such as the cover for ethics hearings, daily allowance for court appearance, the free legal service.
Comment: these would not normally be included in an employer’s policy.
As well as the core policy cover the additional benefits available through the ANZASW scheme represent real value to members, not the least of which is the independence it affords them in the event of a problem arising. Their employers, on the other hand, may not see this independence in the same light as it reduces the employer’s control over the employee at a time when the employee might otherwise be particularly vulnerable and dependent on the employer. In fact the primary driving force behind the establishment of ANZASW’s cover was a situation where two employee social workers were denied access to the employer’s indemnity policy and had to face a claim over their professional competence unprotected by insurance.
Please do not hesitate to communicate with the Association’s Insurance Brokers if you require any further information on the insurance policy.

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In 2002 the Social Workers Legal Advisory Panel was set up as a unique value added service available to insured Social Workers. The service provides a panel of carefully hand picked and approved legal firms throughout New Zealand. The service is to benefit you:
  • if you have been subpoenaed as a witness,
  • if a client has uplifted their file and intimates that they will claim against you,
  • on other professional issues relevant to your cover provided under the ANZASW Member’s policy.
Policy features are as follows:
  • The policy covers claims first made upon the insured and reported to the insurers during the current policy year, providing the act giving rise to the claim occurred post the retroactive date of 1 July 1993.
  • The policy provides indemnity for claims arising from a Wrongful Act committed in the performance of a Social Worker’s professional services.
  • The insurer will pay for defence and costs for appearance at a hearing by professional licensing board, professional or government body concerning violation of social work service guidelines or unprofessional conduct.
  • Counselling and psychotherapy is covered by the policy provided any claims that arise do so as a result of work undertaken by insured’s in their social work profession.
  • The policy pays both any compensation awarded and legal costs and expenses.
  • Loss of earnings cover of $250 per day to a maximum of $5,000 for an insured to attend a hearing or trial.
  • Legal expenses cover of $25,000 for defence of Sexual Misconduct allegations.
  • Cover is included for defamation claims.
  • Cover includes Punitive Damages claims
  • Cover includes ANZASW Complaints Resolution Service, the SWRB complaints & disciplinary procedures, Health and Disability Commissioner investigations, the Privacy Commissioners investigations and attendance at the Coroners Court.
  • Cover includes Defence Costs for Statutory offences including Section 195a of the Crimes Act.
The Association and the broker hold copies of the Master Policy, which is available to members on request.

All members of ANZASW are covered, provided they have supplied an updated annual declaration to ANZASW and that their membership fees are paid and up-to-date.  This includes students and non-practicing members as declared and agreed.

Cover is effective providing you are a member at the time a claim is notified [regardless of when the event that caused the claim occurred].

Limit of Liability

Refer to the documents at the top of this page

The insurance does not cover Employment Disputes, however it is possible that a dispute with your employer in relation to your conduct as an employee may involve or develop into an element that relates to your professional social work services.

Employment related disputes should be reported  to the Insurance Helpline as there may be cover within the policy if part or all of the allegation is related to your professional social work services.  It is important that you report as early as possible to allow your insurers to act and for you to obtain advice on whether the issue is covered by the policy.

Two of the more important exclusions are:
  • Cover does not apply to claims or circumstances known or reported prior to a member joining ANZASW or being covered by the policy.
  • Claims made against a social worker as a result of any dishonest, malicious or illegal acts.

These include:

  • Libel and slander
  • Loss of documents
  • Trade Penalties and related legislation
  • One Automatic Reinstatement

Especially appropriate for members in private practice the policy also offers optional extensions to include Public Liability, Statutory Liability and Employers Liability. These extensions are available at special discounted member rates.

It is a requirement of the policy that an insured must give notice of any claim or circumstances which may give rise to a claim immediately they become aware of the claim or circumstances. If you should become aware of a claim or circumstance please contact the broker.

Excess

Each section of the policy is subject to a $500 excess on each and every claim [except Fidelity $3,000 excess, theft by employees]. In the event that a single notification triggers multiple policies, only one excess (being the highest excess) will be payable by the Insured Member.

The policy sections are:

  • Professional Liability
  • General & Products Liability
  • Employers Liability
  • Statutory Liability
  • Legal Prosecution Defence
  • Internet Liability
  • Fidelity

Summary details of each of these policy sections can be found in the ANZASW Members Insurance Cover Summary. For full details of the policy wording contact the ANZASW Office 03 349 0190 or admin@anzasw.nz.

Crombie Lockwood Insurance Brokers
Iain McKenzie – Executive Broker
DDI 07 579 7627
PO Box 13-483, Tauranga, 3141
Level 2, 15-17 Harington Street,  Tauranga 3110
P +64 7 579 7600      F +64 7 579 7601

You will hear the following customised helpline message when you call 0800 694294

 

“Welcome to the ANZASW Legal Advisory Helpline. Please select from one of the following options if you require legal advice on any issue that could give rise to a claim:

  • If you are based in the upper North Island, Taupo and north, press 1 to speak to Duncan  (021 226 3530)
  • If you are based in the lower North Island or South Island, press 2 to speak to Jonathan (021 878 972)
  • If you wish to speak to the Crombie Lockwood Advisor, press 3 to speak to Iain (07 579 7627)
  • If you wish to speak to NZI about a liability claim or notify a new claim, press 4 to speak to Kate (04 903 4249)
  • If you wish to speak to ANZASW, press 5 (03 349 0190)
  • To hear these options again, please press 6 now”