How much public liability cover do I need?

The detail behind the answer

A quotation starts with the facts of the work. That includes the places you visit, the people around you and anything that could cause damage away from your own premises.

Insurance sits alongside safe working and decent records. It cannot correct an excluded activity or replace precautions required by the policy.

A sensible description of the risk should take account of: number of people who could be affected at once; value and sensitivity of property around the work; and councils, landlords or main contractors specifying a limit. The examples are there to test the description of the business. The policy wording still decides how a claim is handled.

Have the following details beside you: the highest limit any regular client demands; work in airports, hospitals, schools or large commercial sites; and whether defence costs reduce the available limit. If one point is uncertain, ask how the question should be answered and keep the reply.

Do not file the documents unread. The business description, limits, excesses and endorsements deserve a first-day check. Make the enquiry before accepting the policy rather than after an incident.

What can go wrong around the work

These are the less obvious ways trouble can start:

• Number of people who could be affected at once
• Value and sensitivity of property around the work
• Councils, landlords or main contractors specifying a limit

If one of these examples is a regular part of your work, make sure it has not been lost in a broad trade description.

Start with “number of people who could be affected at once”. Make a note of the current position and where that information came from. Then check “value and sensitivity of property around the work” in the same way.

The remaining point, “councils, landlords or main contractors specifying a limit”, 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.

Useful records for the quotation

Recent invoices and contracts should help you establish:

• The highest limit any regular client demands
• Work in airports, hospitals, schools or large commercial sites
• Whether defence costs reduce the available limit

The provider may use “the highest limit any regular client demands”, “work in airports, hospitals, schools or large commercial sites” and “whether defence costs reduce the available limit” 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.

If another person completes the form for the business, read the answers before cover is accepted. The responsibility for accurate information does not disappear.

Two reminders from this page are “check whether the limit applies per claim or in total” and “one contract can require more than your usual limit”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “the highest limit any regular client demands”, ask about it before the cover is needed and retain any written reply.

Save the answers you submit. Check the insured name, business description and dates when the policy documents arrive.

Check the limits and restrictions

• Check whether the limit applies per claim or in total
• One contract can require more than your usual limit
• Higher limits do not remove exclusions

If a clause is unclear, ask for an explanation before the cover is needed. Keep that explanation with the policy.

What to look at one last time

Confirm who works for the business and how subcontractors are used. Employment status and working arrangements can affect more than one type of insurance.

This is a paperwork check, not a safety plan. The job still needs suitable precautions and competent work.

Read the cancellation and payment terms as well. Cover can be affected if an instalment fails or a requested document is not supplied, even though the original quotation looked satisfactory.

One point is easy to lose among the paperwork: higher limits do not remove exclusions; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.