Public liability cover is a crucial protection for tradespeople, safeguarding you against the financial impact of claims from members of the public. Knowing you have this insurance is reassuring, but understanding what it covers and how to make a claim is essential.
This article combines information on both the scope of your public liability insurance and the process for making a claim, ensuring you're fully informed.
Public liability insurance is designed to protect you and your business if your work activities accidentally cause damage to a member of the public’s property or cause them injury.
It’s important to understand that public liability insurance is distinct from:
- Employers’ liability insurance: This covers you if an employee sues you for injury or harm they've suffered as a result of their employment with you.
- Professional indemnity insurance: This protects you against claims arising from negligent professional advice or services you've provided.
Your public liability insurance will cover the cost of claims made by members of the public for:
- Personal injuries
- Death
- Loss or damage to property
These claims must arise as a result of an incident that happened on your business premises, or in a public place, due to your work.
Your insurance policy will typically also cover associated legal fees for defending a claim. However, it's important to be aware there will be a limit on the amount your insurer will pay out per claim, as defined by your policy terms. This limit is often between £1 million and £10 million.
It's also crucial to remember that public liability insurance specifically will not cover injuries to your own employees. Claims for employee injuries are handled under employers’ liability insurance.
Public liability insurance covers a wide range of potential incidents. For instance, consider this example:
A plumber is contracted to install a new kitchen sink in a client's flat. During the installation, a fitting is misconnected, or a pipe is inadvertently disconnected.
The poor connection results in a water leak that goes unnoticed initially but eventually causes significant damage to the flooring in the flat and leaks through to the property below, resulting in thousands of pounds in damage.
If the plumber is sued by the property owners, the costs associated with this claim can be covered by their public liability insurance.
Public liability insurance also extends to claims for injuries caused to members of the public due to your business activities. For example:
Imagine a scenario where a client visits a tradesperson's worksite and unfortunately slips on a wet floor or trips over loose wiring. They fall and break their wrist.
This injury prevents them from working for several months, requires surgery and ongoing hospital visits, necessitating taxi fares as they cannot drive. The subsequent claim against the tradesperson's business could include:
· Lost wages due to their inability to work
· Taxi fares for transportation to and from the hospital
· Compensation for the pain, suffering, and inconvenience endured
As these examples illustrate, claims under public liability insurance can quickly accumulate to substantial amounts. Fortunately, your public liability policy is designed to meet the costs of damages, compensation awards, and associated legal expenses, up to your policy limit.
If you suspect that a member of the public may make a claim against your business, the first crucial step is to check your insurance policy documents immediately. Your policy documents detail the precise procedures you must follow to make a claim and any deadlines you must adhere to.
For example, many public liability insurance policies stipulate a strict timeframe for notifying your insurer, particularly in cases of serious injury. Failing to notify your insurer within the set timeframe could, in some cases, invalidate your insurance cover for that incident. Therefore, prompt action and careful review of your policy are essential.
In the immediate aftermath of an incident, your priority is to:
- Act quickly to minimise any further damage or injury: This might involve ensuring an injured person receives immediate medical attention, or taking steps to prevent further property damage.
- Do not admit blame at the scene: Even if the situation seems straightforward, a proper investigation is always necessary to establish the full facts and determine responsibility. There may be unseen factors or circumstances you are not yet aware of.
Thorough record-keeping is vital. Make a detailed record of the incident as soon as possible, including:
- A clear description of what happened during the incident.
- The precise time and date of the incident.
- The names and contact details of every person who was present at the scene.
Whenever possible, supplement your written record with:
- Photographs of the scene and any damage.
- Obtain written statements from any independent witnesses to the incident.
Contact your insurance provider as soon as you are aware of an incident that could potentially lead to a public liability claim – even if the injured person has not yet made a formal claim. Early notification is crucial.
- Your insurer will be able to:
- Confirm whether the incident is covered under your public liability policy.
- Explain the next steps in the claims process.
- Advise if it’s necessary to involve a loss adjuster to assess the situation, or if they will appoint a solicitor to manage the claim on your behalf.
When you contact your insurer to register a claim, be prepared to provide the following information:
- Your full name and business details.
- Your insurance policy number and contact information.
- Full details of the person making the claim against you (their name and contact details if possible).
- Comprehensive details of the incident itself, including:
o The precise date, time, and location where the incident occurred.
o A clear and detailed description of how the incident happened.
o A thorough description of any property damage sustained.
o If possible, provide initial estimates for repair costs for any damage.
In cases involving personal injury claims, your insurer will also require:
- Detailed information about the nature and extent of the injury sustained.
- Any information you can provide regarding medical treatment sought, time taken off work, etc.
Don’t be concerned if you don’t have all this information immediately to hand when you first report the incident. Provide as much detail as you can at the outset, and your insurer will guide you on gathering any missing information as the claims process progresses.
Once you have registered a claim with your insurer, you can expect the following:
- Guidance and advice: Your insurer will provide you with clear guidance on what you need to do next.
- Regular updates: A reputable insurer will keep you informed about the progress of the claim throughout the process.
- Fact-finding and liability assessment: Your insurer will undertake a thorough investigation to establish the facts of the incident and determine who was legally responsible. This is essential for resolving the claim fairly and efficiently.