When £5 million public liability cover is requested

How to approach the cover

There is no shortcut in the business description. It should cover the routine jobs and the less frequent work that can carry more risk.

The quotation should describe the risk and the policy should reflect that description. Keep both sets of documents so you can compare them.

The points most likely to change the insurance answer include: local-authority work or land; large public events; and main-contractor supply chains. A familiar accident can still fall outside a policy. Use these examples to check what has actually been quoted.

A few minutes with your diary, invoices and contracts should help you confirm: who set the requirement and the exact wording; dates including setup and breakdown; and all business activities at the site. Keep a copy of the completed answers with the documents that follow.

Read the schedule and endorsements when they arrive. They may contain restrictions that do not appear on the certificate. Keep written answers with the quotation so they can be found later.

Jobs and situations to mention

A quotation should take account of points such as these:

• Local-authority work or land
• Large public events
• Main-contractor supply chains

They are examples rather than promises of cover. The insurer will still examine what happened and what the policy says.

Start with “local-authority work or land”. Make a note of the current position and where that information came from. Then check “large public events” in the same way.

The remaining point, “main-contractor supply chains”, may affect price, availability or policy terms. A short factual explanation is usually more useful than a blank answer or an option that does not fit.

Keep the answers with the resulting documents. That makes it easier to spot a restriction that does not match what was declared.

Information the provider may need

Have the following information ready before you begin:

• Who set the requirement and the exact wording
• Dates including setup and breakdown
• All business activities at the site

The provider may use “who set the requirement and the exact wording”, “dates including setup and breakdown” and “all business activities at the site” to decide which terms it can offer. Use accounts, contracts and job records where they help, and explain any expected change in the year ahead.

Where a contract has prompted the purchase, keep its insurance clause beside the quote. That makes the required limit and dates easier to check.

Two reminders from this page are “check products liability where goods are sold” and “some high-risk activities may still be excluded”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “who set the requirement and the exact wording”, ask about it before the cover is needed and retain any written reply.

Look for mistakes as soon as the documents arrive, especially in the business name and activity description.

What the certificate does not show

• Check products liability where goods are sold
• Some high-risk activities may still be excluded
• Keep the certificate with tender records

An endorsement can change the standard wording. Check every endorsement listed on the schedule.

A final check against the real work

Check the work diary for tasks involving heat, height, water, digging, treatment, advice or products. These are easily forgotten when they are not done every week.

Where an answer is an estimate, note the figures used. Update the provider if the eventual position is substantially different.

If a customer has set the insurance requirement, send the certificate only after checking it. The legal name, dates and limit should match what the customer reasonably expects to see.

The page has one more practical caution: keep the certificate with tender records; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.