Most policies covering Public and Products Liabilities will have conditions applied. You may be aware of this but not necessarily understand what actions are required by you or how they will impact your business if not complied with. Here are some pointers of what to look out for when incepting, renewing or just reading your policy.
It is important to note there are many conditions noted in policy wordings and schedules, however, these aren’t always called ‘conditions’. Each insurer uses their own words/ phrases when constructing their policy wording. Look out for clauses, endorsements, exceptions, exclusions and restrictions.
One of the most common conditions applied is a Sub-Contractors Insurance checking clause. This generally relates to the use of Bona-Fide Sub-Contractors and requires you to check and obtain evidence that they have a current insurance policy in place, which provides a certain limit of indemnity, usually equivalent to what your primary insurance policy is covering. The policy covers the work they are completing, cover is effective for the duration of the contract and provides indemnity to you as the principal.
Other conditions to be aware of are: –
- High Risk/ Hazardous Locations Exclusions
- Height and Depth Restrictions
- Heat Work Exclusions/ Hot Work Conditions
Many of the above are automatically excluded under Liability policies, unless they are agreed to be covered by an underwriter and written back in to your policy. All of these can cause issues in the event of a claim if they haven’t been complied with, so it’s important you are aware of what conditions apply to you. If you are unsure, have a read through your policy documents to familiarise yourself – in particular your policy schedule and wording.
If you have any difficulties or wish to discuss this further, please give us a call on 01302 341 344 or 0114 243 9914.
By Molly White Cert CII – Commercial Account Handler