Liability Insurance Broker in Essex:
Liability Insurance – what are you signing yourself up for?
This week I was asked to look at arranging liability insurance (amongst other things) for a company that supplies drivers, warehouse operatives, fork lift truck drivers etc on a temporary basis to the transportation and logistics industry.
Having a number of years experience in arranging liability insurance, I knew it was essential that I see their standard terms of contract that they work to, as there can often be some debate with companies of this type as to where liability rests, as far as the temporary workers are concerned.
Now, whilst I may be a legal layman technically speaking, it was clear that the company had protected itself very well by placing liability firmly with the end user (i.e. the company needing the temporary workers), but I also know that a customer will often try to get the company supplying the workers to work to their terms of contract, and after a few probing questions, it became apparent that my client had indeed agreed to a handful of non-standard contracts. When I looked at these, they (not surprisingly) completely placed all liability on my client – something that completely contradicted their own terms of contract and would need to be agreed with the specialist insurer I was dealing with.
Luckily, my experience in this area meant that I found this out early on and negotiated it into the quote I was putting together for my client, but had the client purchased a policy from the internet, or from a broker/insurer that hadn’t asked the right questions and taken the time to review their contracts, this could have caused a major problem come the time of a claim for injury, property damage or even death.
The message here is clear – if you are engaging with customers/suppliers and they ask you to work to their terms of service/contract, always drill down into the detail, and check just what you are entering into. It could have a massive effect on your insurance cover.
LFC Evans Insurance