What information is needed for a public liability quote?

Why the work description matters

Treat the quotation questions as part of buying the cover, not as a formality to get through quickly. An unclear answer is better queried before payment.

Public liability normally centres on accidental injury to other people and accidental damage to their property. It does not make every loss connected with a job recoverable.

The following situations are a useful reality check: leaving out an occasional but riskier activity; confusing turnover with profit; and forgetting incidents that did not become paid claims. These examples do not promise that a claim will be covered. They bring out details that a broad business label can hide.

The provider may need a clear account of: full legal and trading names; complete activity list with rough percentages; and turnover, employees, subcontractors and claims. Do not make a risky activity disappear by choosing the nearest convenient description.

Check that the final wording follows the answers supplied during the quotation. An unexpected restriction should be queried. Do not leave a doubtful restriction until somebody asks for the certificate.

The risks hidden in an ordinary job

Think about the following before asking for a price:

• Leaving out an occasional but riskier activity
• Confusing turnover with profit
• Forgetting incidents that did not become paid claims

One incident can involve more than one part of a policy. Report the facts and let the insurer consider them.

Use “leaving out an occasional but riskier activity” and “confusing turnover with profit” as checks on the quotation. Describe the position honestly and avoid choosing a lower figure or safer-sounding option simply because it reduces the premium.

“forgetting incidents that did not become paid claims” also deserves a direct answer. Use current records where possible and distinguish a known figure from an estimate.

When comparing quotations, set the business descriptions and endorsements side by side. A price difference may reflect a different view of the work.

Prepare the facts first

The quotation will be easier to complete if you first confirm:

• Full legal and trading names
• Complete activity list with rough percentages
• Turnover, employees, subcontractors and claims

Check “full legal and trading names”, “complete activity list with rough percentages” and “turnover, employees, subcontractors and claims” against recent records. Some answers will be exact and others will be estimates. Where an estimate is needed, use a reasonable basis and keep a note of it.

This record is useful at renewal as well. It shows what was declared and makes changes in the business easier to identify.

Two reminders from this page are “answer what is asked and seek clarification when unclear” and “keep a copy of the answers submitted”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “full legal and trading names”, ask about it before the cover is needed and retain any written reply.

Do not accept a description simply because it is the closest choice in a menu. Ask if it does not fit the work.

Questions for the provider

• Answer what is asked and seek clarification when unclear
• Keep a copy of the answers submitted
• Tell the provider about material changes

Limits, excesses and exclusions answer different questions. Check all three rather than stopping at the headline figure.

Before the next job starts

Read any special terms added for the activity, site or method of work. Decide whether the precautions are realistic for every relevant job.

Do this while the details are fresh. It is much harder to reconstruct an answer after somebody has complained.

Finally, make sure the business could follow every stated precaution on a busy day. If a condition does not fit the way the work is carried out, ask about it. Ignoring an impractical condition is not a safe solution.

The final note for this particular subject concerns: tell the provider about material changes; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.