Regulation and sustainability
The insurance they want and the one you have
Holding a policy and being covered for that job are not the same thing. The gap only shows once something happens.
A new client sends their documentation list and there it is: a certificate of insurance with a specific limit and specific covers. It gets forwarded to the broker, the certificate arrives, it is uploaded and forgotten. That is where the problem slips in, because nobody compared what was asked for against what the policy says.
The four gaps a certificate does not show
| What they ask for | What to check |
|---|---|
| A minimum limit | Whether it is per claim or per year: not the same |
| A specific cover | Whether your actual activity falls inside what is insured |
| That it is current | The date, and that the premium is paid |
| That it names them | That sometimes needs an endorsement, not just a certificate |
Important
**The certificate says you hold a policy; it does not say that job is covered.** Two different claims, and only the first is evidenced by a one-page document. What decides on the day of a claim is the declared activity: if you started out installing and now also do maintenance, or you have moved into a type of work that is new for you, the policy may well be current and not cover what you are doing.
What to review, and when
- 1
Compare the declared activity against what you do today
The check that avoids most grief, and it takes one session a year.
- 2
Look at the limit and on what terms it stands
Per claim, per annum, with an excess: it changes a lot.
- 3
Tell the broker when your work changes
A new client from another sector is reason enough.
- 4
And file the certificate with its expiry and an alert
It lapses yearly, and always at a bad moment.
Watch out
The case that most often ends badly: **they ask for a higher limit than you hold and you upload it anyway, hoping nobody looks**. Almost nobody does — until there is a claim, and then everybody looks at once. Saying so beforehand is awkward for a day; not saying it can leave you outside cover and in breach of contract simultaneously. And raising a limit usually costs considerably less than people imagine.
Worth knowing
What cover each type of contract requires, what the limits mean exactly, and what is needed for a third party to appear on the policy is determined by the contract and by your insurer's terms. **Your broker settles that before the work is signed**; here we explain what to compare so you do not find out on the day of a claim.
›Is the certificate from my insurer enough?
To evidence a policy exists, yes. To know whether it covers THAT job, read the terms.
›They want a higher limit than I hold
Discuss it with your broker before signing. It usually costs less than expected.
›How often should I review it?
Yearly, and whenever what you actually do changes.
A real case
The situation
An installer starts doing maintenance too, and the policy declares installation only.
What you do
- Tells the broker about the change of activity before signing the first contract
What you get
The cover describes what the company actually does, not what it did three years ago.
The situation
A client asks for a higher limit than is held and the certificate is uploaded regardless.
What you do
- Raises it with the broker and with the client before signing
What you get
Being simultaneously outside cover and in breach of contract is avoided.
The situation
The certificate lapses yearly and is always discovered when a client demands it.
What you do
- Files it with its expiry date and an advance alert
What you get
The renewal is requested in good time rather than in a rush.
The situation
The policy is sent without checking what it covers.
What you do
- Checks it covers that work before sending it
What you get
Discovering the gap when something happens is avoided.
The situation
The client asks for a limit above what is contracted.
What you do
- Discusses it with the broker before accepting the contract
What you get
The commitment matches the real cover.
The situation
The policy expires midway through a long job.
What you do
- Records the expiry when filing it
What you get
Renewal happens before it bites.
This article answers
- asked for a certificate of insurance
- does my policy cover this job
- public liability insurance clients ask for
- asked for a higher cover limit