Buying public liability insurance after a claim

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.

Three parts of the work deserve a closer look: the same work method is still used; records of the claim are incomplete; and an unresolved circumstance could become another claim. Use the list to find the parts of the work that need a clear answer in the quotation and policy.

Before opening a quotation form, find the information behind these answers: date, cause and total paid or reserved; corrective steps and training; and any open complaints or solicitor letters. A brief written clarification is easier to rely on than a half-remembered conversation.

If a customer requested the insurance, compare the certificate with the contract before sending it. Dates and limits should agree. If the answer is not clear, ask before the first job relies on the cover.

What can go wrong around the work

The risk becomes clearer when it is broken into real events:

• The same work method is still used
• Records of the claim are incomplete
• An unresolved circumstance could become another claim

Do not assume that a familiar accident is automatically insured. Conditions and exclusions still apply.

Use “the same work method is still used” and “records of the claim are incomplete” 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.

“an unresolved circumstance could become another claim” 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.

Have these answers ready

Use actual business records where you can. The provider is likely to need:

• Date, cause and total paid or reserved
• Corrective steps and training
• Any open complaints or solicitor letters

Check “date, cause and total paid or reserved”, “corrective steps and training” and “any open complaints or solicitor letters” 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 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 “do not omit a claim because another insurer handled it” and “separate facts from opinion”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “date, cause and total paid or reserved”, ask about it before the cover is needed and retain any written reply.

Keep the quotation record with the policy. If the wording describes a narrower business, ask why.

Check the limits and restrictions

• Do not omit a claim because another insurer handled it
• Separate facts from opinion
• Answer questions about incidents as well as claims

The certificate is only a summary. Use the schedule, wording and endorsements for the fuller picture.

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: answer questions about incidents as well as claims; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.