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 6. Insurance

Partner organisations are expected to have appropriate insurance arrangements in place. 

 This will include: 

  • Employers Liability Insurance 

  • Product Liability Insurance 

  • Public Liability Insurance 

  • Professional Indemnity Insurance 

Minimum recommended insurance coverage is indicated in the table below (to be completed). 

Insurance Type 

Minimum recommended coverage 

Comments 

Employers Liability Insurance 

 

 

 

Product Liability Insurance 

 

 

 

Public Liability Insurance 

 

 

 

Professional Indemnity Insurance 

 

 

There is concern within the insurance industry regarding the level of cover required for retrofit work (see below) 

 6.1 Professional Indemnity Insurance 

  • Professional indemnity insurance, also referred to as PI insurance, is a type of cover to protect your business if you provide designs, specifications, advice or instructions as any part of your job. If any of your recommendations or advice have caused a financial or reputational loss for a client and you’re found to be at fault, this is insurance cover that will indemnify you against liability  

  • All companies that provide professional services, recommendations or advice should invest in professional indemnity insurance. 

  • When would you need professional indemnity insurance? 

  • PI will protect you if something you’ve done or recommended in the course of your work results in a financial loss for your client and they decide to take you to court. It can take a while for the issues caused by professional consultation/bad design to come to fruition Investing in PI will help to mitigate the consequences of any legal action which may arise. 

  • How much professional indemnity insurance do you need? 

  • This depends on the type of business you run, the kind of work that you do, and the scale of the contracts that you work on. Professional indemnity can protect work you’ve done in the past, so the level of insurance you need will depend on how established your business is and how much of your previous work you want to protect. 

  • [to be confirmed – this is for DPPR] It is required that to operate under LEAD each Partner should hold Professional Indemnity Insurance that covers a minimum £100,000 including maintained cover for 6 years on a simple contract, and 12 years on a deed.  

  • Naturesave has notified ECOE, TEC and others that the insurance industry is uncomfortable with the risk associated with providing retrofit advice. It has been agreed that we should work with Naturesave and a panel of insurers to discuss this; and help the insurance industry understand the work that we are undertaking, and the level of risk involved.

  •  We will progress this in April 2024, and invite participation from Partner organisations as required.  

 

 

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