Claiming on Public Liability Insurance

[Venisonpie]

Our business has three offers in a retail environment one of which is selling wine to drink on the premises. Recently one of our staff accidentally spilt some.wine on a couple of customers causing damage not fixable.by dry cleaning.

We have assured the affected parties we will make the situation right by replacing the garments plus any dry cleaning fees.

We are claiming via our public liability insurance however this is taking longer than it should causing understandable frustration for the affected customers.

I asked the insurers if we could settle it and then claim back from them but apparently not. I've never had to use public liability insurance before- does the process sound right? We want to do the right thing but are a bit stuck.

[Nicetobenice]

Yes that's the correct process.

[AB]

This doesn't sound like a major problem unless it was a one-off designer dress or something?

In this instance I'd be tempted to just settle it and move on.

[LooneyTunes]

Have you checked what the implications of a claim are likely to be in terms of future premiums?

It may well be the case that you're better off just paying out and not claiming for something relatively minor.

[MrBen.911]

Public Liability claims more usually involve a claim in writing from the third party (or their legal representative), which you pass onto your Insurer to deal with on your behalf. Whilst it makes sense in this case that you have presented the claim yourself, the process often seems to work less well, as the Insurer's process is so fixed around dealing with a claim from the third party.

Do you have a broker, are they being any use in pushing the insurer to deal with the claim? Have they identified a reason for the delay, or is it just simple lack of response?

Also, do be careful assuring the claimant that you will deal with it, even when it seems like a very clear cut case - Insurers always instruct you not to admit liability, as you could prejudice their position.

[Venisonpie]

Thanks for all the responses.

In hindsight we might be better to settle it ourselves, the amount is not huge but enough to have made us follow the insurance route.

Given how the process is working and the need for the insurers need to engage directly with the claimants its probably a false benefit.

It's a lesson learnt on our part and I can see why the customers are getting frustrated. I assumed we would claim back our loss but obviously mistaken.

[Ham_and_Jam]

Venisonpie said:

Thanks for all the responses.

In hindsight we might be better to settle it ourselves, the amount is not huge but enough to have made us follow the insurance route.

Given how the process is working and the need for the insurers need to engage directly with the claimants its probably a false benefit.

It's a lesson learnt on our part and I can see why the customers are getting frustrated. I assumed we would claim back our loss but obviously mistaken.

What is the estimate for the replacement items? It does seem that it would have been easier to settle outside of insurance.

[Venisonpie]

Ironically the insurers have just accepted liability and will be settling with the affected parties directly which is the good news.

The fact it took nearly 4 weeks may have caused us more reputationally so one to learn from.

Amount was £500 ish which equates to 1 day's staff costs.

[vikingaero]

Venisonpie said:

Ironically the insurers have just accepted liability and will be settling with the affected parties directly which is the good news.

The fact it took nearly 4 weeks may have caused us more reputationally so one to learn from.

Amount was £500 ish which equates to 1 day's staff costs.

It just goes to show that you can only tell if an Insurer is any good in the event of a claim. Any Insurer can claim to be 99 star platinum Defaqto, but fall down at the most important hurdle.

The only real way round this is to go for the higher premium/net worth Insurers. We've had catering policies with NFU Mutual, but never claimed, but some farming friends said that the agents were allowed to write immediate cheques for up to £10k.

[TwistingMyMelon]

Good point above RE you can never tell how good an insurance is until it is too late

As above, tbh I would only use Liability insurance for a huge/buisness terminating cost , as they will reclaim the money through next years premium and as you have found it takes bloody ages

The lord giveth with one hand and taketh with the other...

[mjcneat]

Venisonpie said:

Ironically the insurers have just accepted liability and will be settling with the affected parties directly which is the good news.

The fact it took nearly 4 weeks may have caused us more reputationally so one to learn from.

Amount was £500 ish which equates to 1 day's staff costs.

I've worked for a few of the big insurers in the UK (and still do). Most Public Liability insurance usually has an excess in respect of third party property damage claims. Usually there to prevent small claims like this being presented and essentially making you self insured up to the excess amount.

[48k]

vikingaero said:

Any Insurer can claim to be 99 star platinum Defaqto,

No they can't. It's very strictly controlled and licensed.

(Source: 12 months spent working on a project for Defaqto. I could bore you to death on the software and data behind the star ratings and how it all works).