Have I got the right cover.... Indeminity...?

[sythai]

Evening Chaps....

Renewed my public liability on Fri. And this time round also added on £250,000 of Indemnity cover.

Got my documents through from 'Trade Direct (Zurich)' Little confused :

Reading through it all there is £50,000 of 'professional indemnity' - same as last year. Then there is £250,000 for 'wiring certification'

Is that right, wouldn't I be better of having £250,000 of 'professional indemnity' then surely it would give me a bigger scope of coverage, which should include any paperwork and certification ?

Help please,

Sy :bulb2:

 

[SW1970]

Yes, you'd be better. I get my insurance through NAPIT and it's clearly stated as the amount selected under professional indemnity. Not sure what the breakdown of cover from Trade Direct is all about. I'd give them a bit of grief because it's not what you requested. PI insurance covers all aspects. E.g., if I do a design, hand it to the client, they give it to another sparks, design turns out to be flawed and there's an incident. Under your policy only £50k would be covered, not the £250k.

 

[sythai]

Thanks for that..... best I get on the case :53:

Sy

Just curious - anyone else out there have any PI insurance through Trade Direct ?

 

[sparkygirl]

I suspect that 'wiring certification' is insurance speak for doing a Periodic Inspect and Test. Because in that circumstance you would be certifying wiring that has been installed (and possibly been modified) by another spark, not yourself, the customer will then rely on your professional opinion of the installation. If it later bursts into flames when he uses something based on you saying a circuit was safe, you will be liable. I agree with SW1970 that £50K would not be nearly enough, but neither would £250K. Imagine the worst case scenario: a block of flats or row of terraces going up. The liability would run into millions. For this reason, I get my insurance through NICEIC because they, like NAPIT, will ensure that any insurance they endorse will offer correct and relevant cover for their members.

 

[IQ Electrical]

I suspect that 'wiring certification' is insurance speak for doing a Periodic Inspect and Test. Because in that circumstance you would be certifying wiring that has been installed (and possibly been modified) by another spark, not yourself, the customer will then rely on your professional opinion of the installation. If it later bursts into flames when he uses something based on you saying a circuit was safe, you will be liable. I agree with SW1970 that £50K would not be nearly enough, but neither would £250K. Imagine the worst case scenario: a block of flats or row of terraces going up. The liability would run into millions. For this reason, I get my insurance through NICEIC because they, like NAPIT, will ensure that any insurance they endorse will offer correct and relevant cover for their members.

Have you checked the limits on your NICEIC insurance?

I checked and the PIR indemnity was only £75,000

 

[sparkygirl]

Yes, that's right IQ Electrical. I'm going from memory here, but I think I'm right in saying that the standard policy conditions give you a low level of PI cover as long as it only accounts for something like 10% of your total business. If you plan on offering PIRs as a regular service, you need to buy extra optional PI cover. If you don't, it would be easy to get caught out in the event of a claim. If the insurer looked at your business and found you did a greater percentage of such work than you were covered for under the policy, it could invalidate your insurance.

When I looked into it, an adequate level of PI cover was going to add massively to my premium and, as I almost never do PIRs, I decided not to bother. But if I ever change my mind and decide to make PIRs a serious part of my business, I won't hesitate to pay for the right amount of cover. The alternative is just not worth the risk.

 

[sythai]

Just rang up the NICEIC for a quote..... thats better

They give full professional indemnity cover as opposed to 'wiring certification' from Trade Direct.

£240 = £2000,000 liabilty + £500,000 PI, thought that seemed reasonable

 

[drew35]

Trade direct are easily the cheapest, and the indemnity is specifically for electricians I think that's why its worded the way it is on the certificate.

 

[sythai]

Unfortunately didn't help me this time..... shame cause been with them years....

Their price was £200 = £2000,000 PL + £250,0000 wiring certification (which dosen't include surveying, design, giving general advice)