Queen insures staff against job losses
THE SUNDAY POST - 11TH APRIL 2002
Dole fears for Royal Household workers.
For the first time, the Queen has taken out an unemployment insurance policy against redundancy involving her staff, The Sunday Post can reveal.
Around 300 members of the Royal Household, who assist the monarch in her official duties, are covered by the new policy.
The scheme ensures staff will be cushioned from the financial blow of losing their jobs.
It guarantees a monthly payout, for up to a year, of three quarters of he salary they were earning before becoming unemployed.
It’s believed the staff covered are mainly those who work in the domestic side of the Upstairs Downstairs world of the Royal Household.
The largest department is that of the Master of the Household, which is responsible for domestic arrangements and staff, as well as catering an official entertaining.
It has nearly 300 employees, including footmen, pages, chefs, kitchen staff, gardeners, electricians, porters, housemaids and even clock winders.
It’s understood this is the first time the Palace has protected staff in this way.
Simon Burgess, of London underwriting agency Burgesses, revealed, “I was approached two weeks ago by a prestigious Lloyd’s insurance broker and asked if I could provide income payment protection insurance on a group basis for 300 members of the Royal Household.
“The premium has now been paid. The total cost was £9,000, of which 15 per cent was the broker’s commission.
“I understand those covered are Royal staff in a number of locations, including Balmoral.
“Judging by their wage levels I would say they are domestic staff.
“If a claim were made, the average payout would be around only £500 a month – which equates to three quarters of salary.
“They are not highly paid because they receive payment in kind, such as accommodation, and meals. Those things aren’t covered by the policy.”
Mr Burgess says he often offers discounts on group policies, but didn’t in this case because he judged the Royal workers to represent an “abnormal risk” of unemployment.
He explained, “We can access confidential lists of employers whose susceptibility to redundancies has been calculated by financial analysts. That way we try to interpret the potential for unemployment.
“Perhaps there is more strain on the monarchy these days with public pressure not to have serfdom.”
A Buckingham Palace spokesman said they had no knowledge of insurance being taken out on behalf of staff.
