Public liability insurance broker

Public liability insurance policies are indemnity policies. They provide protection to the insured against any liability to the members of the general public, as opposed to employees of the insured, and cover claims resulting from physical actions causing accidental injury and damage. They are usually written on a "claim occurring" or "occurrence" basis: the relevant insurance cover will be that in existence at the time the event occurred.

It is again usual for such policies to contain limitations on the indemnity provided, so that the policy could stipulate a pecuniary maximum payment in relation to any claim or any period.

A public liability insurance policy will, typically, restrict the cover by reference to the business carried on by the insured, so that if an accident occurs the insured will only be covered if the accident arises out of the insured's stated activities. The policy will also typically specify the particular liability covered so that an incident must be of the specified type.

The importance of specifying liabilities in the policy is that the premiums payable under the policy depend on the probability of accidents payable under the policy depend on the probability of accidents occurring and the occupation and size of the insured's business.

Claims brought by an insured's employee when acting in the course of business will usually be covered by employer's liability insurance.' If, however, an employee is not carrying out any identifiable professional activity when injured or injuries a member of the public, the professional organizationÂs public liability insurance will cover the liability.

'It is common for professional indemnity insurance and public liability insurance to be taken out at the same time through the same broker, which taken in conjunction with statutory compulsory employer's liability insurance, will assist to ensure there are fewer gaps or overlaps in the liability cover provided.

An accident occurring to a third party while an employee is driving a company vehicle in working hours would be covered by a motor policy, not by professional indemnity or public liability insurance.

However, an employee of a professional organization monitoring work on site, and who in the course of that monitoring causes injury to a contractor's employee or a member of the public, may be covered by professional indemnity insurance, as the professional's employee was engaged in professional activities at that time.

All main standard conditions now contain obligations to maintain insurance. The association of consulting engineers includes both professional indemnity insurance and public liability insurance. It provides:

The consulting engineer shall maintain public liability insurance covering the consulting engineer, his employees, agents and subcontractors from the effective date of this agreement until the completion of the services.