Public liability on commercial sites

What this means for the business

Think through a normal month’s work. The useful details are often found in the jobs that differ from the usual routine.

Do not assume that a larger limit also means wider cover. The figure and the scope answer different questions.

The following situations are a useful reality check: damage stops another business trading; a visitor enters the work zone; and dust, water or debris reaches neighbouring premises. 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: site type and maximum job value; hot work, height, lifting or machinery; and security passes and principal contractor requirements. 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.

Examples worth considering

Think about the following before asking for a price:

• Damage stops another business trading
• A visitor enters the work zone
• Dust, water or debris reaches neighbouring premises

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

Look closely at “dust, water or debris reaches neighbouring premises”. Record who controlled the area, what equipment was in use and whether another business or household was affected.

Also look at “a visitor enters the work zone”. If another contractor, venue or customer controls part of the site, keep the agreement and any instructions they supplied.

Keep the exercise practical. Use jobs you have done or genuinely expect to do, rather than remote possibilities added simply to make the list longer.

Prepare the facts first

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

• Site type and maximum job value
• Hot work, height, lifting or machinery
• Security passes and principal contractor requirements

Read “site type and maximum job value”, “hot work, height, lifting or machinery” and “security passes and principal contractor requirements” alongside the booking terms, contract or site information. If one detail has not been settled, say what is known and update the provider when it changes.

Afterwards, compare the answer with the wording about follow permit-to-work systems. It should not point in a different direction from the information you supplied.

Two reminders from this page are “follow permit-to-work systems” and “business interruption losses can be substantial”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “site type and maximum job value”, 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.

Parts of the policy worth finding

• Follow permit-to-work systems
• Business interruption losses can be substantial
• Report changes from the agreed method

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

Keep these notes with the policy

Put the proposed start date beside the first job that needs cover. There should be no unexplained gap.

Then look at the least typical job you expect to accept. If it falls outside the description, deal with that before taking it on.

Store the documents somewhere another responsible person in the business could find them. That is useful if an incident happens while you are away or unable to deal with it yourself.

There is also a page-specific detail to carry forward: report changes from the agreed method; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.