Would you drive a car without insurance? Of course not, as the potential consequences are catastrophic. So why would you run a business without insurance?
Many training professionals are taking a risk by ignoring the need for professional indemnity (PI) and public liability insurance (PL).
Insurance broker Jardine Lloyd Thompson (JLT), preferred insurance provider to customers of the Chartered Institute of Environmental Health, are urging trainers to ensure they have appropriate insurance cover in place. One single incident could irreversibly damage their businesses.
Public liability insurance provides protection to your business in the event that physical loss or damage is caused to a third party or their property.
Professional indemnity insurance protects your business in the event that a third party suffers a financial loss as a result of errors or omissions in advice or professional negligence on your part.
Gary Chambers, Regional Managing Director JLT Professional Risks, said: “The vast majority of people would not even consider getting into a car without cover because a seemingly innocuous accident could ruin them financially, perhaps even professionally.
“If the other party makes a claim for injuries or property damage the legal costs can be very expensive, never mind any potential payout.
“However, many trainers are subjecting themselves to a similar situation by not having PI and PL insurance – a single claim could ruin their business.”
This danger was highlighted by a recent case where a director and his firm were each fined £7,000, as well as costs of £5,500, after an employee had to have part of their leg amputated.
Nicholas McCarthy, of Cottenham, and his firm Fenland Electrical Network Services pleaded guilty to charges brought by the Health and Safety Executive.
The incident occurred when a group of linesmen were training to carry out an emergency descent from a mobile elevated platform.
One of the men fell because his harness was not attached and suffered serious damage to his leg, pelvis and spine.
Gary added: “PI and PL cover will protect your business in situations where you are pursued by a third party who is either making a valid claim or holding your business liable for an incident that has occurred – a safety net that could ensure business survival.”
“Insurance will also protect training consultants who are claimed against by their client, who may try to blame them for their own health and safety breach after being hit with a payout.”
To discuss any of the above, or for advice on your insurances, please contact Jardine Lloyd Thompson on 0800 107 2434 and quote CIEH.
Disclaimer
Whilst all reasonable care has been taken in the preparation of this publication no liability is accepted under any circumstances by Jardine Lloyd Thompson for any loss or damage occurring as a result of reliance on any statement, opinion, or any error or omission contained herein. Any statement or opinion reflects our understanding of current or proposed legislation and regulation that may change without notice. The content of this document should not be regarded as specific advice in relation to the matters addressed.
JLT Professional Risks. A division of Thistle Insurance Services Limited. Lloyd's Broker. Authorised and regulated by the Financial Services Authority. A part of the Jardine Lloyd Thompson Group. Registered office: 6 Crutched Friars, London, EC3N 2PH. Registered in England No. 00338965. VAT No. 244 2321 96. The CIEH are an Introducer Appointed Representative of Thistle Insurance Services Limited.