What is efficacy insurance?
Efficacy is cover against the legal liability for injury to third parties or damage to third party property brought about by a product or service failing to perform its intended function. Efficacy insurance is also known as "failure to perform" insurance.
This type of insurance is important to electricians, cctv installers, alarm installers, electrical contractors, security firms, and fire companies, especially those preparing Fire Risk Assessments, working with fire extinguishers, and sprinklers or misting equipment.
You need specialist help because effiacy is excluded from 99% of standard Public/Product Liability insurances - any exclusion should be clearly noted within the Policy Wording or shown as a Policy Endorsement.
Why buy efficacy insurance?
Most professional bodies recommend that efficacy is included within Public / Product Liability Policies because of the protection it provides. Increasingly organisations will not sub-contract work unless evidence of effiacy cover is in place. For years we have offered competitive efficacy cover through this and our sister-site efficacybroker.co.uk
It is important to note efficacy cannot be bought as standalone cover. Instead it is incorporated within a Public/Product Liability Insurance, usually to the amount of indemnity shown.
Is efficacy insurance expensive?
Choosing not to have efficacy cover is a false economy, especially in the event of a claim. Because of the nature of work undertaken in industries where efficacy is excluded, costs quickly escalate to the hundreds of thousands.
£1 Million for damage repair doesn't go far and most specialist efficacy providers use it as their baseline, offering also £2 Million, and £5 Million. Companies sometimes arrange £5 Million Public/Product Liability (including efficacy) plus an Excess Layer of an additional £5 Million, taking the full coverage amount to £10 Million. Evidence of such cover is often needed before contracts can be awarded or commenced.
Why buy efficacy from us?
We have been a pioneer of efficacy cover from its earliest days and have become broker of choice for BAFE, the BFC, and the UK Fire Association. Whether it's as Sandham Davies & Jones Ltd or efficacybroker.co.uk, we are a leader in providing efficacy to the UK Fire, Security and Electrical Sectors.
We have access to several specialist efficacy providers and can tailor cover to suit your needs and budget, whether a low cost Per Capita plan (based on the number of manual workers) or a wider ranging bespoke policy permitting more high risk or specialist work, such as in airports or power stations.
Sandham Davies & Jones Ltd arranges efficay insurance or "failure to perform" cover for: the Fire and Security Sector; Electrical Contractors; Heating and Ventilation Contractors; Cleaning Contractors; the Pest Control Sector; Renewable Energy industries: and the Facilities Management Sector.
What is Public / Product Liability Insurance?
Public / Product Liability indemnifies a firm against any compensatory damages and claimant costs in connection with legal liability for accidental injury or property damage arising in connection with the business. The Product Liability component protects a firm against costs incurred from accidental bodily injury to a third party or accidental damage to their property arising from goods supplied.
What is Employers' Liability Insurance?
Employers' Liability Insurance covers a firm's legal liability for the accidental death or injury to its employees (including claimant's costs and expenses) arising from activities in connection with the business and caused by negligence.
The Employers' Liability Regulations 1998 make employers' liability compulsory for any individual or company with employees. The only exemption is if you run your own Limited Company with yourself as the sole employee and you own 50% plus of the issued share capital.
A valid employers liability certificate must be displayed at the place of business and where employees are working. Since October 1st, 2008 your certificate can be stored electronically providing all employees have access and are aware of its location. Employers' Liability insurance is automatically set at an indemnity level of £ 10 Million.
What exactly is Professional Indemnity Insurance?
Professional Indemnity cover protects your legal liability to compensate third parties should they sustain injury, loss or damage as a result of professional negligence.
Most liabilities arise from failing to adequately inspect equipment, design errors, inadequate supervision of work in progress, or negligent certification. It would be worthwhile considering Professional Indemnity insurance if you do any of the following:
- Paid and standalone design work
- Inspection and certification of other people's work
- Work for Local Authorities, who may insist on such cover
- PAT testing with the issue of inspection reports
What is Contract Works?
Contract works insurance covers loss or damage to temporary and permanent construction works plus the the cost of any materials should they be damaged or stolen prior to completion. Contract works insurance may be arranged to cover new builds, refurbishments, repairs or extensions.
What is Own and Hired-In Plant?
Own plant and/or hired in plant insurance is vital for contractors who use complex and expensive machinery as part of their everyday business. Cover may be extended to include items on the contract site, in transit to and from the contract site, as well as being temporarily stored elsewhere. This cover does not extend to hand tools, ladders, or other low value kit.
Should you need any further information, please call us on 01633 213063 or email us using the box below.