Is £1 million public liability cover enough?

What the policy needs to reflect

The practical test is simple enough: could the policy provider recognise the job from the description you supplied? If not, the description may be too vague.

The schedule, endorsements and main wording work together. Reading only the certificate can leave out the conditions and exclusions that affect a claim.

The following situations are a useful reality check: a customer contract asks for £2 million or more; several people could be injured in one incident; and work takes place around high-value property. 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: typical job locations; maximum site occupancy; and products supplied and work completed away from site. 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.

How the problem can arise

Think about the following before asking for a price:

• A customer contract asks for £2 million or more
• Several people could be injured in one incident
• Work takes place around high-value property

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

Use “a customer contract asks for £2 million or more” and “several people could be injured in one incident” 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.

“work takes place around high-value property” 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:

• Typical job locations
• Maximum site occupancy
• Products supplied and work completed away from site

Check “typical job locations”, “maximum site occupancy” and “products supplied and work completed away from site” 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.

If the form offers only broad categories, choose the closest honest description and use any available notes box to explain the difference.

Two reminders from this page are “the limit is not a quality rating” and “legal costs may affect how far it stretches”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “typical job locations”, 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.

Wording to read before buying

• The limit is not a quality rating
• Legal costs may affect how far it stretches
• Renew if contract requirements change

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

Finish with the paperwork

Look back over the jobs completed during the past twelve months. Include the occasional work, not just the service that brings in most of the turnover.

Contracts sometimes ask for more than a limit. Read the whole insurance clause and query anything you do not understand.

Keep a simple note of later changes: a new service, different premises, extra staff or a larger contract. Ask whether the policy record needs updating rather than assuming the change can wait.

A last check should cover: renew if contract requirements change; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.