Public liability insurance provides the necessary details of coverage on a single page. It provides the summary of the entire insurance coverage that the business is entitled. This certificate normally includes the policy number of the business, the name of the insurance provider, dates of effectiveness, the types and coverage limits of the policy. It also serves as reassurance for the company or business in the event of an accident.
For other businesses that want to subcontract work to another business in the UK, the certificate of public liability insurance will make it easier for them to understand the coverage policy of the company. So instead of going to each page of the business’s insurance policy, the certificate simplifies it for them. This makes it easier for the subcontractor to understand the policy and what is covered by the insurance in case that there are unexpected injuries or damages while working on the premise of the business. In general, public liability insurance serves as protection for the business especially when the subcontractor files a claim against the company.
When a subcontractor tries to request a certificate of public liability insurance, it is essential that the business contacts the insurance provider or company for a copy of the certificate. This provides the business an extra reassurance against fraud when sending the certificate to the subcontractor who requested it. This is because the insurance company will be the one to provide the certificate and not the business itself. Additionally, it applies to the same process of a business requesting to a potential subcontractor where the certificate will come from his or her insurance agent. It is also advisable for a business to call the agent listed on the public liability insurance certificate to verify the coverage of the subcontractor.
For businesses who hires a subcontractor to work for them, the certificate works as a reference to the person. In case that this subcontractor causes damage to the property or equipment of the business, all the necessary information needed by the business when filing claims to the subcontractor can be found from the certificate. It is important for the business to keep these files of the subcontractor since the insurance provider will request them when performing audits related to the claim of the business against the subcontractor. When the insurance provider of the business found out that the subcontractor is uninsured, it may assess additional premium or drop the insurance coverage of the business.
Public liability insurance is a necessity for any businesses in the UK, especially when protecting the assets of the company. While unexpected injuries or damages to the property may occur while the business operates, the public liability insurance works as a shield against the claims of the people affected by the business. Also, the certificate will let the people working for the business understands their limitations of filing claims against them. This makes public liability insurance important to businesses in the UK since a single claim may result in huge expenses when the company is not insured.