Public Liability> Public Liability Insurance
Public Liability Insurance - an overview
Introduction
In the course of our job, our hobbies and general living we come into contact with other people (the public). In law we owe a duty of care to these people to ensure that neither they, nor the property they own is damaged by our negligence. If they suffer a loss and we are negligent we become liable for the damage or loss that we cause. This potential of loss is unforeseeable and is quantifiable and so is suitable for insurance.
Duty of care/ Liability
Just because a member of the public has suffered a loss does not necessarily mean that we are liable for the loss. In law the following facts have to be proved before liability can be admitted in negligence.
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A duty of care was owed to the person suffering the loss.
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You failed to exercise that duty of care.
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The other person has suffered a loss as a result of that breach AND
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The loss was a forseeable result of the breach of duty of care.
Liability to the public may arise not only due to negligence (supra) but in 'tort' e.g. 'nuisance' or even strict liability or a liability imposed by statute. An example of strict liability is the rule established in the case of 'Rylands V Fletcher'. This rule states that if someone brings something or stores something on their land which is a non-natural use, then they are liable even if negligence cannot be proved. One exception is fire. If fire starts by accident on a property then the owner is not liable if it escapes. Please note that a fire started in a grate is NOT started by accident so if it escapes liability is established. An example of liability under statute is the hotel proprietors act which imposes a liability on a hotel proprietor for loss or damage to a guest's belongings.
Insurance
The cost of a claim for negligence can be substantial - losses could include damage to property, personal injury, consequential loss, legal fees etc and can quite easily run into thousands for the smallest claim and millions for the largest. Such an amount is beyond most people or firms so they take out insurance whereby for a small premium the risk is covered. The benefits of insurance are very marked - the premium for a single person in a low risk trade is less than £50.00 and up to £1,000,000 cover is purchased.
Cover
If you are considering buying public liability insurance online it is important to realise that the policy may not, indeed cannot, provide cover for every eventuality. Insurers will limit their exposure by ensuring that the job you have does not extend the risk of making a claim beyond what the insurance company expect. This they will do by defining the business, where you can work and limiting the activities. Particular endorsements may be applied also for certain trades.
Location
There will be a general restriction to working in the UK with possible occasional work in Northern Ireland and Europe - but we are limited to individuals and companies living in the UK (and Northern Ireland in some cases).
In addition the location will be further restricted by specifying on what types of property and locations you can work. Work on high-risk property such as dams, oil rigs, refineries will entail a greater exposure to risk and many companies will exclude such hazardous locations.
A further restriction will be a height or depth limit. The higher you are the greater the injury should an employee fall due to your negligence, similarly the deeper you are the greater the risk of collapse of the shuttering. If your work involves digging then insurance companies may also request precautions to be taken to avoid fibre-optic cables being cut.
Online Quotes
We provide a facility to obtain public liability insurance quotes online for many trades. We do not allow the policy to be bought online as we will have to provide confirmation of the quote and the policy documents/ summary so you can read them before purchase. It is also important that you read the endorsements and restrictions as to locations.
Policy excess
A final note - usually for public liability there is an excess for property damage claims - this can be as low as £100.00 but is often (especially for higher risk occupations) £250.00. Watch out for companies providing quotes with much higher excesses - ensure you could pay the excess if a claim is made. Most insurance companies will NOT apply an excess for injury claims or employers liability claims - but, as with any insurance you buy - check the cover - or call us if you are in doubt - that is what we are there for.
Subcontractors
IN general there are two sorts of subcontractors: Labour Only Subcontractors - who operate under the main contractor's supervision and for whom the labour is responsible (and cover with liability insurance) and Bona Fide Sub Contractors BFSC - who operate independently and who carry their own insurance (for whom the main contractor is not responsible but who may have to examine to ensure are in order).
Please note that just because someone is operating as a BFSC it does NOT mean that they are NOT employed by the main contractor. Indeed many unscrupulous contractors make their employees operate as BFSCs believing that they can get around the high employers liability insurance premiums. This is not the case. If an action is brought by the employee/BFSC for injury it will be up to the courts to decide if a contract of employment is in force. If they DO decide then insurance companies will not be happy that the employer has tried to defraud them of the correct premium - you have been warned.
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