Serving School Boards Since 1987

Risk Management Advisories

UNINSURED LABOUR-RELATED CLAIMS

The purpose of this bulletin is to highlight labour-related risks which are the direct responsibility of school boards. Risk management and loss prevention are paramount to avoid claims against school boards arising out of disputes with individual employees or organized labour. In this area, school boards are unable to transfer the risks to their insurer and must fund such costs themselves.

Coverage is NOT provided by OSBIE's general liability insurance policy for:

  1. isputes with organized labour or disputes brought as an employee or union grievance;
  2. a claim for damages for:
    • discrimination
    • wrongful dismissal
    • breach of contract except when related to Wrongful Act in the administration of employee benefit programs.

Refer to Section 5.2(3) of OSBIE's liability policy for complete wording.

Disputes and claims do not fall within the definition of Personal Injury claims (as defined in Section 5.12) which details the types of claims covered by OSBIE's general liability insurance policy.

SUMMARY:

The Board is responsible for defending employment related disputes and claims. Payment of legal defence costs, awards and penalties are the responsibility of the school board.

OSBIE will provide a defence and pay for damages arising out of Personal Injury claims in accordance with the terms, conditions and exclusions of the liability policy

(REVISED 2010) E&OE

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