As you know, liability insurance is designed to protect you, especially in your day-to-day business activities. But there may be times when you are called upon to perform work in places or circumstances that are unusual for you. That's where the danger lies.
Insurance Contracts Contain a Number of Exclusions
Did you know, for example, that environmental pollution risks are generally not covered? Nor is work performed inside a naval vessel or an aircraft?
Imagine the catastrophic potential of such work. For example, what do you think happened to the contractor who was responsible for a major contaminant leak from work done on a dry cleaner's? What about the contractor whose work at a marina resulted in the total loss of dozens of luxury yachts? These competent contractors were forced into bankruptcy because they thought they were protected, but were not.
When Should I Consult my Broker?
To avoid such situations, it is important to check the limits of your coverage by consulting your insurance broker BEFORE starting any work. In general, do it every time you have a doubt! And more specifically:
- When you feel that your coverage amounts will be insufficient due to the scope of the work planned;
- When you are about to perform work of any size on the premises of an airport or marina, or inside an aircraft or marine vessel;
- When you believe that the work poses a risk of environmental pollution;
- When you commit to doing work, again, no matter how small, that is "out of the ordinary";
- When specifications are issued, whether or not they include an insurance component;
- When the project is covered in its entirety by a "wrap-up" insurance policy.
Of course, this list is not complete, as each insurance contract has its own particularities. Only your broker would know! Is this all just common sense? Perhaps. Nevertheless, every day, many of you take risks, fearing that by calling your broker, the latter will "impose" the payment of an additional premium on your insurance policy, which is a very bad calculation.
So, if you are unsure about the extent of your insurance coverage, call your broker. It won't prevent the unexpected, but it will at least prevent you from suffering the consequences!