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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.

  • 0 in reply to ebee
    ebee said:
    but what about insurance cover to pay some damages/reimbursement to the affected parties?

    That's your run-off cover.

    Perhaps it would be a good idea to speak to your insurers. Then please come back and let us know what they say.

    Oh, the joys of being a self-employed electrician! You still have expenses after you retire, but at least they will be deductible from the taxes which you will also have to pay in arrears, not least on your equipment should you choose to sell it.

  • 0

    So here is me thinking simple arithmetic that:-

    You are in business for 10 years.

    In each of those 10 years you pay a yearly prem to an insurance company (or companies) and you public lability is covered for what you did for each of those 10 years but not a day longer?

    But neither is it covered after the year for which a particular prem was paid either.

  • 0 in reply to ebee

    As I have said (above or below in this wonky forum) it is all in the contract. If you stay with the same insurer, I feel sure that cover continues past the premium year. Not sure what happens if you change though.

    I don't think that this is a practical problem with public liability. So you fall off your stepladder, which goes the other way and smashes a window/the telly/a priceless artwork/etc. You retire the next day (thankfully, and thinking of The Gas Man Cometh https://www.youtube.com/watch?v=v1dvAxA9ib0 ) and the claim comes in a few days later. I don't think that that is a problem because the damage was obvious whilst you were insured.

    By contrast, you design and install, and retire the next day. A couple of months later after the plasterers and decorators, etc. have done their work, the customer moves in. Any problems which occur at this stage require run-off insurance.

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