Frequently Asked Questions
Who do you provide cover for?
What are legal liabilities and how can I be sure that the policy
limits will provide adequate cover?
I sometimes take on Temporary Employees, are they covered?
Does the policy provide cover for Bona Fide Subcontractors?
The nature of my business fluctuates according to the type of
contract secured. How can I ensure that the policy will continue to protect me?
What precautions must be taken when applying heat to any property
or materials away from the premises?
Why is it necessary to have cover for employment disputes?
What is Prosecution Protection?
Why is it necessary to have cover for tax investigation?
Are there any restrictions for Tools and Business Equipment?
Who do you provide cover for?
Business Insurance Direct can provide cover for self employed professional
people either working from a base such as an office/practice or off site such
as at peoples homes/building sites etc. Every business set up is unique, so to
confirm any aspect please do not hesitate to call us.
What are legal liabilities and how can I be sure that the policy limits will
provide adequate cover?
Employer's Liability
Employers are required by law to have insurance covering their liability should
an employee suffer death or injury whilst working for the trade or business. A
labour only sub-contractor is also likely to be considered an employee, as are
any working directors of limited companies. The Employer's Liability section
provides up to £10 million of cover for employers and fully complies with
statutory requirements.
Public Liability
Public Liability insurance is not compulsory but, with large sums for damages
now routinely awarded in court for personal injury coupled with escalating
legal costs, one claim could put you out of business, so cover is
essential for trading protection.
Local authorities and other principals usually require contractors to hold such
cover without which contracts will not be awarded. The cover will protect the
insured if in the course of the trade or business, the insured, any partner or
director or employee accidentally injures a third party or damages their
property and they seek recompense for which the insured is held legally
responsible. This also includes damage or injury caused by defects in goods or
materials supplied by the insured. The standard cover allows you to select up
to £5 million indemnity (on most trades). We would recommend the maximum.
I sometimes take on Temporary Employees, are they covered?
The Public Liability section is automatically extended to include cover for
Temporary Employees for up to 50 man days in total in any one period of
insurance. If there are permanent employees for which we have charged an
Employer's Liability premium this extension will also apply to the Employer's
Liability section. If there are no permanent employees and cover is required
for the Employer's Liability section, please enter one manual employee, for
Contracting trades, or one clerical employee for Professional trades, in order
to benefit from this extension.
This extension would also apply to the Tools and Transit section if the section
is operative.
Does the policy provide cover for Bona Fide Subcontractors?
The Public Liability section includes indemnity to the Insured for his liability resulting from actions of Bona Fide subcontractors. However there is a condition in the policy that payments to Bona Fide subcontractors do not exceed 25 % of the Insured's annual turnover. The insured must ensure, prior to their appointment, that the Bona Fide subcontractor holds current Public Liability insurance appropriate to the work to be carried out.
The nature of my business fluctuates according to the type of contract secured.
How can I ensure that the policy will continue to protect me?
In the majority of cases, referral to the questions, the summary of cover and
the policy wording should provide sufficient guidance. If, however, the contract is of such a size that the actual
workforce exceeds eight, it will be necessary for alternative cover to be
arranged to a more appropriate policy.
We cannot however provide cover for contracts involving work on or in any of the
following hazardous locations:
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Docks, Harbours or Railways
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Offshore or Petroleum Installations
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Chemical or Petrochemical Works
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Aircraft, Airport or Airfields
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Collieries, Mines or Quarries
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Power Stations
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Nuclear Installations
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Watercraft
If you enter into a new line of business or secure a larger than usual contract,
you should discuss this with us.
What precautions must be taken when applying heat to any property or materials
away from the premises?
We believe that prevention protects profits and that we are in partnership with
the insured to minimise avoidable disruptions to the business and damage to
their reputation.
The following precautions are vital to guard against loss and must be taken to
ensure the policy cover will operate:
-
Hot air guns in operating mode and lighted blowlamps, blow torches, flame
cutting or welding equipment must not be left unattended and must be
extinguished immediately after use.
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At least one two-gallon or nine litre fire extinguisher per item of heat
equipment must be kept available for immediate use.
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All movable combustible materials must be removed from the immediate vicinity
of the work (to a distance of six metres when welding or flame cutting
equipment is used). All combustible materials which cannot be removed, must be
covered by overlapping sheets of flame proof materials except when hot air guns
are used.
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A fire safety check of the working area must be carried out immediately after
the completion of each period of work but when welding or flame cutting
equipment is used fire a safety check must also be carried out thirty minutes
after the work ceases.
-
Bitumastic products must not be heated in or on any building or roof.
Why is it necessary to have cover for employment disputes?
Following changes in the definition of self-employed by the Inland Revenue,
most companies in the construction sector will be forced to engage many
operatives as direct employees. This will therefore increase the risk of having
to defend costly and time consuming actions brought by employees. This policy
provides cover for legal defence costs up to £25,000 per dispute and limited to
£100,000 in total in the Period of Insurance.
What is Prosecution Protection?
An employee may be prosecuted for any act or omission or alleged act or
omission in the course of the insured's trade or business. This extension
applies to a person under a contract of service or apprenticeship with the
insured and provides cover for legal defence costs up to £25,000 per dispute
and limited to £50,000 in any one period of insurance.
Why is it necessary to have cover for tax investigation?
With the attitude taken by the Inland Revenue towards employment and
self-employment status, many companies in the construction sector find
themselves exposed to tax penalties and retrospective collection of National
Insurance contributions.
The Policy will provide cover for legal and professional fees incurred should an
investigation be carried out by the tax authorities.
The policy provides up to £25,000 per tax Investigation and limited to £50,000
in total in the Period of Insurance.
Are there any restrictions for Tools and Business Equipment?
Certain valuables, money, documents and livestock are not insured. Theft of
computers, computer equipment and accessories from a motor vehicle is not
insured unless the property is stolen from a securely locked boot.
Theft from unattended motor vehicles between the hours of 20.00 hours and 07.00
hours is not insured unless the vehicle is kept in a securely locked garage or
an approved alarm and other security precautions are in force.