How to read a public liability policy

What to do with the first information

Notify the insurer or broker promptly when an incident could become a claim. A delay can make evidence harder to recover.

A small initial complaint can develop when injury or hidden damage emerges later. Keep the file even if the matter appears settled.

For this subject, record the position on three points: the trade description is incomplete; an endorsement sets a strict precaution; and the limit works differently from what you expected. Give dates where possible and identify the source of information supplied by somebody else.

Put these items together next: insured name and business description; period, limits and excesses; and conditions, warranties and exclusions. Keep originals in their existing form. An incomplete genuine record is better than a polished reconstruction made later.

Check the policy’s notification instructions and use the contact route shown in the documents. Keep proof of what was sent and when. If the matter changes, pass the new information on.

What may affect the claim

Keep a clear note of the following:

• The trade description is incomplete
• An endorsement sets a strict precaution
• The limit works differently from what you expected

A gap in the records should be identified honestly.

Begin with “the trade description is incomplete”. Write down when it happened, who was involved and what was done straight away. Avoid filling gaps with assumptions. If you are not sure of a detail, say so and check the original record.

Next consider “an endorsement sets a strict precaution”. Preserve any photographs, correspondence, contracts or job notes that bear on it. The third point, “the limit works differently from what you expected”, may explain why the matter needs prompt notification even if no formal demand has arrived.

Keep the account factual. The insurer or broker can ask follow-up questions and decide what the policy requires; your immediate job is to preserve the information and pass it on.

Gather the original evidence

The useful evidence is likely to include:

• Insured name and business description
• Period, limits and excesses
• Conditions, warranties and exclusions

Organise the material under three headings: “insured name and business description”, “period, limits and excesses” and “conditions, warranties and exclusions”. Add dates wherever they are known and keep each original document or image unchanged.

Separate what you saw from information supplied by somebody else. For anything received later, note who supplied it and when. This gives the insurer or broker a clear record without turning uncertain details into fact.

Keep the originals and provide copies unless the insurer asks for something different.

Points to handle carefully

• Ask about unclear wording before work starts
• Keep every document from the same policy version
• Record answers given during the quote

Cooperate with reasonable enquiries and keep copies of everything supplied.

Keep the next steps visible

Save the original job information, photographs, messages and any later correspondence in date order. Keep a note of telephone conversations, including who called and what was agreed. Do not rewrite an earlier record to make it neater.

Pass letters of claim, solicitor correspondence or new evidence to the insurer or broker promptly. Avoid entering into an argument with the other party or promising a payment before the firm handling the claim has considered it.

If urgent action was needed to make the place safe or prevent further damage, keep the invoice and explain why the work could not wait. One caution is worth repeating: Record answers given during the quote.

Once the immediate issue has settled, review what happened. A practical change to the work method, site records or customer instructions may reduce the chance of a repeat.