FAQ's Railway Workers Construction Scheme

Q. Why do I need Public Liability?
The law states that if you cause damage to someone or their property then you will have to pay the claim amount which, in the worst case scenario, could run to many millions of pounds. By taking out PL you are protecting your business against going bankrupt should the worst happen. The insurer will pay the claim and any legal fees.

Q. How much cover do I need?
You are required by the Railway Construction Scheme to have minimum cover of £5m.

Q. What is Public Liability?
Public Liability Insurance (PL) covers you for any damages that a member of the public (other than an employee of your business) may be awarded as a result of injury or damage to them or their property caused by your business. It also covers legal fees in addition to the level of indemnity and other expenses to do with defending any claim.

Q. Do I need Employers Liability?
Yes. Generally speaking, it is a legal requirement on all businesses to have employer’s liability insurance cover. Exemptions exist and include:

• Family businesses (unless incorporated as a limited company).
• Companies employing only their owner where he or she also owns 50% or more of the issued share capital in the company.

Q. What is Employers liability?
Employer’s liability insurance (EL) is designed to cover your employees so that in the event they suffer any physical injury or death, and it is proven that as an employer you acted negligently and subsequently could have prevented their loss, if they then decide to pursue you for compensation the insurer will pay the cost of the claim. EL is not designed to cover you against the risk of being sued for claims such as sexual discrimination, wrongful dismissal etc.

Q. What is an excess?
An excess is the first amount payable by a customer in the event of a loss and so is the uninsured portion of your loss. This excess serves to deter customers from submitting minor claims and it also deters fraudulent claims. It therefore serves to keep premiums down.

Q. What is Professional Indemnity?
Professional Indemnity insurance covers small business people who provide specialist advice to other companies. People who are in the business of selling their skills or knowledge may wish to be protected in the event of a negligence claim as a result of services they have provided to a third party.

PI insurance will cover the costs of any compensation sought by a client as a result of negligence, and should also cover any legal costs.

Q. Who needs to take out Professional Indemnity?
Knowledge-based professionals, such as IT contractors, consultants, designers and engineers are increasingly likely to take out professional indemnity insurance, and some clients may insist that cover is in place before hiring your services.

Q. What does the Professional Indemnity cover?
A negligent act, or error made during the course of your duties
Unintentional infringement of intellectual property rights
Loss of data or documents entrusted to you
Unintentional breach of confidence
Unintentional libel or slander
Dishonesty

Q. If I leave the contract mid term will I get a return of premium?
There is no refund of premium if you decide to leave the Railway Workers Construction Scheme

Q. Why do I have to pay the premium? It appears expensive?
You need to ensure that the level of cover and type of cover is appropriate for the duties you perform. You may obtain a cheaper quote; however the insurance cover may not be relevant or suitable for the duties you perform.

Q. What if I have to make a claim?
You must contact Bond Insurance Services Ltd.

Q. What if I change categories (jobs) in the year?
Please contact Bond Insurance Services Ltd.