New rules governing Employers' and Public Liability claims
From 31 July 2013, there are new rules from the Ministry of Justice governing Employers' and Public Liability claims valued below £25,000.
If the rules are successful, it should reduce the overall cost of insurance claims and drive down the cost of insurance premiums. A similar scheme has been in operation for Road Traffic Act claims for a few years and has had a positive effect.
Responding to a claimant's solicitor
- A claimant's solicitor is expected to make reasonable attempts to locate the insurer of a potential defendant;
- For Employers' Liability claims, solicitors will search an industry database where most insurer records are held;
- For Public Liability claims, the claimant's solicitor will find it more difficult to locate the insurer and may write to the defendant direct, advising that a claim is being pursued;
- The policyholder/defendant will only have one working day to repond to the claimant's solicitors with details of the liability insurer if a claim is received. If the response is not received in time, then higher legal costs will be incurred if the claim is settled.
- Ensure all employees have details of who has the insurance details in case they are contacted by a claimant or their solicitor;
- Contact us immediately to notify us of the correspondence and we can help you provide details of your insurer.
Preparing for a claim investigation
The 90 calendar day (63 working days) investigation period allowed by the existing rules are reduced to either 30 or 40 working days depending on whether the claim is against your Employers' Liability or Public Liability insurance policy. We recommend that you make every attempt to assist us and your insurer during the investigation by gathering evidence, documents and witness statements.