What is the limit of indemnity for shelving and racking installer insurance?

Getting the right insurance in place is an essential part of your business set up. Understanding the indemnity limits for your insurance is an important consideration when choosing that insurance, as it can affect the amount of cover provided and your premium.

What is indemnity and what are indemnity limits?

The word indemnity essentially means insurance compensation for damage or loss. When we talk about indemnity limits it usually means ‘the maximum amount an insurer will pay out on a policy during its term’  (i.e. the duration of the policy, which is usually 12 months).

What that payout will be, in turn, depends on the amount of cover you have opted for.

What are the limits of indemnity for shelving and racking installer insurance?

This will depend on the different types of insurance you have. As a shelving and racking installer, you will normally want to consider:

• public liability insurance
• employers’ liability insurance (if you have employees)
• professional indemnity insurance
• insurance for your tools

Different amounts of cover will apply for each type of insurance. Therefore, each type of cover will have different limits applied when it comes to a payout.

With each policy, you should also check to see whether you typically pay any excess before an insurance payout is authorised and, if so, how much it is.

What is the limit of indemnity for public liability insurance?

Public liability insurance protects you from third-party claims against you for damage to property or injuries for which you may be held liable. How much cover you need will vary depending on a few factors:

• What does your client contract say about how much cover you should have?
• What sort of projects do you work on and how high a level of risk do they entail?
• Do any regulatory requirements state how much cover you should have?

It is typical to have public liability cover of at least £2 million. This will be the maximum paid out, but check whether this relates to a single incident or claim, or the cumulative total for all claims made in the insurance period.

What is the limit of indemnity for employers’ liability insurance?

Employers’ liability insurance is a legal requirement if you have any employees (including part-time staff or trainees). You are required to have cover up to a minimum of £5 million.

What is the limit of indemnity for professional indemnity insurance?

Professional indemnity insurance protects you in the event you provide professional advice which turns out to be negligent, causing the client a financial loss.

The limit of indemnity will depend on the amount of cover you have, your circumstances, the type of work you do, and the insurer’s terms. The payout limit could be anything from £50,000 to £500,000 or even £1 million.

What is the limit of indemnity for tools insurance?

Depending on the types of tools you use and their value, you would normally expect to get tools insurance with indemnity limits totalling £10,000 to £15,000 . Again, check what this means in terms of individual tools and the number of claims made within the policy term.