What is high-risk insurance?
As the name suggests those people who work in high-risk occupations will require insurance that is not off the shelf and is specific to their individual and business requirements. There is no one size fits all policy for people working in a risk situation. This can include but is not limited to:
- Contractors
- Civil Engineers
- Diamond drillers
- Groundworkers
- Plumbing and heating contractors
- Refrigeration and ventilation engineers
- Rope access
- Steeplejacks
- Welding and fabrication
So, what qualifies as high-risk insurance? Most of these high-risk professions either involve working from height or being exposed to dangerous materials like heat or fumes, and this hugely increases the possibility of accidents. For instance, not only could somebody fall from high up and injure themselves, but there’s also a greater chance of property damage, should you or an employee drop work materials from height. This could lead to members of the public, or customers, taking legal action against you, which is when high-risk insurance cover becomes a lifesaver for your company.
What sort of liability insurance does a high-risk need?
Public Liability – insurance protecting you against claims made against you in respect of your legal liability for personal injury or damage suffered by third parties.
Employers Liability – offers protection against legal and compensation claims made due to injury, disease or death made by employees and contractors whilst working for you.
Employers Liability is a legal requirement and Public Liability an essential insurance for any business. However, your High Risk Liability Insurance may require additional features these can include:
- Products liability
- Tools and equipment
- Plant and machinery
- Temporary employees
- Personal accident to employees and directors
Talking to a broker will help you decide on the features that your insurance requires.
Why you should work with a broker:
Dependent on your profession and how dangerous your job is, will determine how many insurers are going to be interested in insuring you or your business, the more dangerous and specialist the sector the less likely that an insurer will want to navigate it. Quite simply, the riskier your work is, the more likely they’ll have to pay out. As such, many companies in high-risk industries are forced to settle for inadequate coverage that doesn’t give them the protection they need.
In this instance it is advisable to work with a broker like GMi Insurance Services. A broker will make sure that the level of cover you have is appropriate for your business needs. They will also know the insurers that are willing to cover your industry and the risks that you face and can advise on the best insurers to work with in your individual situation. Knowing the right insurers to go to may also lead to a cost saving compared to someone that is looking for insurance that doesn’t know where to ask for help.
How much liability insurance does a high-risk need?
The limit of indemnity is the maximum amount the insurer will pay out for a single claim, or in some cases the maximum amount they will pay out in a year. This limit is set by you based upon your requirements. Common limits under these policies are £1M, £2M £5M and £10M although other limits are available for high risk. Choosing the limit you will need, to decide how much cover you think you will require, may depend on the type of work you undertake, but more commonly these days the contractual requirements you work under requests for a certain limit from local authorities. For employers’ liability, the statutory minimum is £5M although in practice policies are not issued with a limit of less than £10M, again higher limits are available upon request,
What is the excess on a high-risk liability insurance policy?
The policy excess is an amount of money that you are responsible for in respect of each claim that occurs under your policy. You will generally find a policy excess applies to property damage claims under the public liability insurance and this is commonly £250 or £500. There is no policy excess in respect of claims for personal injury under either the public or employers’ liability insurance policies.
What to do next:
If you are not sure that you have the right insurance in place or if you think you are being over-charged then call us on 0208 850 5531 or email: commercial@gmi-insurance.co.uk and we can do a free review of your insurance needs.
