Which liability insurance?

[RF Lighting]

Mine is £165 a year for £5M PLI, £50K PII, and £1K tools cover

 

[flyingsparks]

Why am I being so ripped off then?!
Are you chaps insured to work on bespoke machinery eg inside machine panels and to make modifications to them etc?
This is my first year of having cover, does it go down like car insurance does if you don't claim?

 

[PrenticeBoyofDerry]

This is my first year of having cover, does it go down like car insurance does if you don't claim?

When did car insurance go down, it only goes up don't it? But goes up more if you claim.

 

[flyingsparks]

No claims bonus?

 

[plugwash]

When did car insurance go down,

AIUI if you are a new driver the price of insurance for you starts out extremely high and then gradually reduces as you become a more experianced driver and (hopefully) build a no-claims bonus.

Eventually of course you reach a bottom and it starts going up as the general price of insurance goes up.

 

[JohnW2]

Why am I being so ripped off then?!

Are you sure that chalk isn't being compared with cheese? As has been pointed out, the indemnity element (which not all people may need or have) is likely to be much more expensive than the PLI. That's true in virtually all professions.

Kind Regards, John

 

[riveralt]

As has been pointed out, the indemnity element (which not all people may need or have) is likely to be much more expensive than the PLI. That's true in virtually all professions.

I have never been able to get to the bottom of why indemnity insurance is much more expensive than PLI. When PLI was for £2m and indemnity £250k.
I raised this a number of times with my insurer and the answer I got back was that you are giving your professional opinion for Electrical Installation Condition Reports and general advice to customers.
I contended that each time I gave a customer a quotation for a job I was making a judgement on their installation and their needs.
I was effectively, designing, installing and testing the installation which seem to be far more than just providing advice and/or an EICR.
My current PLI is £70 the combined PLI and indemnity insurance of my last quote was over £300.

 

[ban-all-sheds]

AIUI if you are a new driver the price of insurance for you starts out extremely high and then gradually reduces as you become a more experianced driver and (hopefully) build a no-claims bonus.

Unless you are French.

Over there, AIUI, they give new drivers one benefit of the doubt, and set the premiums at a much more affordable level, where they remain in your early years, unless you have a prang, in which case they rocket up to familiar UK-type levels.

Sounds like a good system.

 

[JohnW2]

I have never been able to get to the bottom of why indemnity insurance is much more expensive than PLI. When PLI was for £2m and indemnity £250k.

As I undertstand the situation (and I'm certainly no expert in this field) ....

I think it's probably basically just down to actuarial considerations and the nature of the respective cover. Millions of businesses (from corner shops and baby-minders upwards) have PLI, which essentially only covers damage to persons or property. Although claims, when they occur, can be large, only a minute proportion of PLI policies ever result in claims - so the premiums can be low. If you knocked down a customer's chandelier or they tripped over your toolbox, PLI would cover that but, with most PLI polices, it would not help you in relation to actions regarding 'bad work or advice' (unless personal injury or property damage resulted) - even dangerous work which hadn't (yet) resulted in any consequences would probably usually not be covered.

Professional indemnity is more about claims against you for 'bad work or advice', 'mistakes' etc. Claims are far more common, hence premiums higher.

Why undertaking EICRs seems to be regarded as more needing of indemnity cover than is 'designing and installing and testing' is as much a mystery to me as it is to you. However, I might look at it the opposite way around to you, since I would think that anyone who does engage in 'designing, installing and testing' (even if not EICRs) without indemnity cover is probably taking somewhat of a risk.

Kind Regards, John