Collective liability insurance
Some authorities may opt for the option to take out collective liability insurance. Such collective insurance is often cheaper than private liability insurance. For you as a student, collective liability insurance is not an issue in most cases. But, for example, if you enter the board of a study or student association, it is useful to know something about it. Even if you take a job besides your study or are an active member of a sports club, you may also be confronted with it.
Here we discuss some advantages, examples, the possibilities and limitations of collective liability insurance and how you can benefit as a student.
What is collective liability insurance?
A collective liability insurance is taken out for a larger group of people. The liability insurance only pays out if the unintended damage was caused by, or during an activity of the agency through which the insurance was taken out and if private liability insurance does not already cover this.
Collective insurance for student insurance
You can participate in many activities during your studies. For example, as a student, you can join a student association and/or a sports association. Because liability insurance is not mandatory to take out in the Netherlands, an association cannot simply assume that all people who carry out activities there have taken out liability insurance.
Nevertheless, it is not inconceivable that members, volunteers or employees will, in the unfortunate event, cause material or immaterial damage for which the association is subsequently held liable. This type of association therefore often has collective liability insurance. This means that an association or a company is insured for damage caused by you during association activities.
Collectively insured during a part-time job or internship
Many students take a part-time job during their studies for some extra income and have to do an internship as part of the study. For many companies, it applies that permanent employees are generally included in the agreements made with the insurance company. Volunteers, part-timers and interns are usually automatically insured.
More advantageous
On a collective insurance policy a discount is often given. This makes it attractive to take out collective liability insurance in many cases. An employer or association can therefore choose to take out collective liability insurance for permanent employees or members. In this way, you are insured through the employer or association for damage that can be caused during your work.
Companies or associations where the risk of inflicting unintended damage is high can therefore benefit from collective liability insurance. Student associations are, however, often viewed by an insurance company as a high-risk group through their student activities.
An example of this is a classic rough student night in which the stuff of another student association breaks down. Also, sports clubs where the chance of unintentionally causing damage to someone else is relatively higher will have to deal with extra clauses or slightly higher premiums than otherwise would be the case.
