Exclusions differ from one insurer to another, and checking them is part of our work before we recommend a policy to you.
A customer slips on a wet floor in a retail unit and suffers a fracture. The claim covers treatment, lost earnings and distress. General liability pays the compensation that is established and the cost of the proceedings up to the limit purchased, less the deductible.
A food producer ships a batch in which a sealing fault causes spoilage and makes customers ill. Product liability responds to the claims of the injured parties, but not to the value of the batch that is recalled. If you export the product, the territorial scope of the policy has to include those markets from the start.
A design office makes a mistake in a structural calculation, so the developer has to order a revision and remedial work. Professional liability covers the financial loss suffered by the developer and the defence costs, while putting the faulty design work itself right stays with the office. In public tenders this policy is often required as a condition for taking part.
The examples are illustrative and show how the cover works in practice.
General liability covers bodily injury and property damage that your business causes to a third party, for example a visitor or a neighbour. Professional liability covers financial loss caused by a mistake in professional work, with no physical damage involved. Most service companies need professional cover, and anyone who receives people on their premises needs general liability as well.
For some activities it is required by regulation or demanded as a condition for doing the work and for bidding in tenders, for example in construction and in certain regulated professions. For most companies it is voluntary, although customers and developers increasingly require it by contract. Tell us what your contract asks for and we will look for a policy that matches it.
The per claim limit is the most the insurer will pay for a single claim, while the aggregate limit is the ceiling for all claims in one policy year. If you have several smaller claims, the aggregate is eaten up and can be exhausted before the policy expires. That is why we compare both limits and not only the premium.
That depends on whether the policy is written on a losses occurring or a claims made basis. Professional liability is often claims made, which means the claim has to be reported while the policy is running or within an extended reporting period. This clause is easy to overlook, so we always check it before signing.
Not automatically. A subcontractor is normally liable in its own right and should carry its own policy, unless it is expressly included in yours. On larger projects it is standard practice for the contract to require evidence of subcontractor cover, which closes the gap.
Send us a short enquiry. We collect offers from every insurer that covers this risk and explain the differences before you sign anything.
