Don’t let your business become a liability

The construction industry is one that’s faced with claims everyday and still suffers the highest number of employee accidents of any trade. The costs associated with both public and employers’ liability claims can easily run into the millions, so being correctly insured is essential.

Luckily, organisations such as the CORGI make it compulsory to have a valid public and employers liability policy to enable you to become a member, proving just how important it is to be insured. But what do these types of policies actually cover?

Employee protection

If you’re an employer hiring permanent employees, trainees, temporary workers, apprentices, and labour-only subcontractors, by law you’re required to have a valid employers’ liability policy. This is part of your duty of care, which incorporates common law and statutory provisions with guidance from the Health & Safety Executive. Always check that your current employers’ liability policy is providing cover for yourself and everyone under your supervision.

Public liability insurance provides cover should you or your company cause any injury or damage to a third party person, such as the home owner or a passer-by, or their property. This type of insurance isn’t compulsory, although you’re required to have it to be a CORGI member. Without this protection, you could face risking huge financial losses should a substantial claim occur.

What’s the right policy for me?

The most critical aspect of buying liability insurance is ensuring you’re buying the right kind of policy according to your business needs. Your policy will vary depending on the type of work that’s carried out and who is doing the work. For example, your employers’ liability limit of indemnity must be £5 million but many insurers offer limits of up to £10 million. This level of cover may sound extreme but a recent claim, involving an employee who was left paralysed after a fall, was estimated to cost around £4 million.

Public liability works in a similar way, where insurers will offer different indemnity limits. Most of them start at £1 million with options to increase to £3 million or £5 million or even higher. The level you choose will depend on what kind of work you do, how you do it and even whom you work for as local authorities, for example, will ask for evidence of £5 million public liability insurance.

In general, you need to purchase a policy that will cover you for everything you need to do in your job, wherever you’re working, and covers everyone that works under your supervision.

And what about price?

The price of your premium will always depend on your trade, experience and claims history, amongst other factors. If you’re offered a premium that’s conspicuously cheaper than other policies always check that the:

• Policy covers you for all types of work carried out in your business.
• The excess if a claim occurs is not exceedingly high.
• Policy is based on the correct number of employees under your supervision.

Without adequate liability insurance protection, construction businesses could face financial ruin should they be found negligent for a claim. Always make sure you have a current public and employers’ liability policy in place, ensure it covers you for ALL the work you do and finally check that all the workers you’re responsible for are covered by your employers’ liability insurance.

At CORGI Insurance services, we can provide solutions for all your insurance needs. Call 08457 58 51 60 for your business insurance, or for your home, travel and motor insurance call 0800 028 5578. If your insurance isn’t due yet, give us a call to register your entry and we’ll then contact you closer to the date.

If you have any queries on your insurance or would like a free no obligation quotation, then call the CORGI Insurance Services team on 08457 58 51 60 or email corgi-insurance@ars.aon.co.uk.