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Prof indem insurance versus public liabillity

ebee

Something I have not fully understood for a long time.

Let`s see if someone can enlighten me . A simple practising Sparks from the Norf of our country (England) or should that be from the Norf of our nation? (Britain or UK).

Anyway.

I set up as a self employed electrical contractor for say 10 years.

I decide to get insurance cover. Let`s leave employees or subcontractors aside for now.

So I get cover and renew every year for each of those 10 years.

After those 10 years I stop trading and cease all cover premiums. That`s it.

My public liability insurance covers me for hurting someone or damaging their property.

So any hurt or damage that is caused by something I do or omit to do during that 10 year period is covered.

Now my questions :-

Q1/   in year 11 or onwards something happens and someone is hurt or damage is caused by some of my actions during the 10 year insured period the is that covered by the insurance I had in place at the time? ref public liability insurance.

Q2/   ditto situation for advice I gave during the insured period and someone suffers damage as a result but again from year 11 onwards? (Periodic/ EICR would be a good example).

What is the answer in each case - is it yes or no?

Q3/   If yes then is the answer yes to both questions?

Q4/   If no then is the answer no to both questions?

Q5/   If the answers to Q3/ and/or Q4 are not identical then why is that?.

To my simple mind I would have thought that each of those insurances should cover what I did or advised when I did it or advised it and cover that subsequent liability for as long as I might be held to account for it by any law.

I consider that this discussion is very much "Wiring and the Regulations" related to all of us.

Parents
  • 0

    Public liability insurance covers only accidental damage to persons (tricky one) or property you damage whilst working. The period in which a claim may be made is usually specified and quite short, as such accidents should become obvious immediately.

    Professional indemnity insurance is very different, it (should) cover things that go wrong because you were professionally incompetent, and this may not become obvious for a long time. Most policies require you to continue to pay premiums to keep the cover going, but the risk to single electricians is in reality small, so fairly low premiums. If you are a designer of larger projects, say hospitals, then the premiums will be bigger and need to continue for longer. Grenfell is likely to significantly increase premiums for everybody because there will probably be many claims once the Lawyers get going.

    Persons carrying out EICRs should have PI insurance as there are ongoing risks. Claims are very low however because proving error MAY be very difficult and not worthwhile. I have no idea what happens with a drive-by although JP may have an idea as he appears as a professional witness in such cases.

    Hope that helps, but if you are unsure contact your insurer who will provide full details of the small print in English!

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  • 0

    Public liability insurance covers only accidental damage to persons (tricky one) or property you damage whilst working. The period in which a claim may be made is usually specified and quite short, as such accidents should become obvious immediately.

    Professional indemnity insurance is very different, it (should) cover things that go wrong because you were professionally incompetent, and this may not become obvious for a long time. Most policies require you to continue to pay premiums to keep the cover going, but the risk to single electricians is in reality small, so fairly low premiums. If you are a designer of larger projects, say hospitals, then the premiums will be bigger and need to continue for longer. Grenfell is likely to significantly increase premiums for everybody because there will probably be many claims once the Lawyers get going.

    Persons carrying out EICRs should have PI insurance as there are ongoing risks. Claims are very low however because proving error MAY be very difficult and not worthwhile. I have no idea what happens with a drive-by although JP may have an idea as he appears as a professional witness in such cases.

    Hope that helps, but if you are unsure contact your insurer who will provide full details of the small print in English!

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