feature
A gamble on insurance
The rail industry employs some 25,000 • Does the service provider/agency designed purely to serve the legal and
sub contractors with the majority engaged interpose themselves between the contractual needs of the contractor in this
through recruitment agencies facilitating company/individual and the end unique industry'.
essential operational works on its rolling user/client in any other way Elaine Southwell of Bond Insurance
stock and infrastructure assets. For the last whatsoever? Services Ltd commented, 'You may find
eighteen months, and in conjunction with From this it becomes apparent that group companies who are willing to quote cheap
QBE, Bond Insurance Services Limited have insurance issued by a service Public Liability, however you need to
been studying the insurance relationships provider/agency to a company/individual ensure the protection they are offering
in place between End User/ Agency and has the potential to fail MSC legislative covers you for the duties you will be
Contractor. requirements and we now see market performing. Unless you make it very clear
On April the 6th 2007, revised Managed leaders removing group insurance policies that you are performing your duties on the
Service Companies (MSC) legislation further from the services they offer. Group railways, you may find you are not
defined contract relationships, in our insurances carry the additional risk of covered and the premium you paid was
opinion clearly stating 'the only way in leaving individuals uninsured on generic worthless.'
which service providers/agencies can policy wordings which often exclude
support their client companies is by specific rail biased works. In simple terms, For the Limited Company Contractor
providing accountancy and legal services to generic policies often offer relatively low In the case of an accident or damage
them in a professional capacity'. premiums however effectively rendering occurring to third party property the
Whilst the provision of group insurances the worker liable, should a claim arise due principal insurers will always look to pass
does not automatically deem the service to exclusions in the policy wording. their liability down the line. In every issued
provider/agency an MSC provider, the Andy Graham of Cobra London Markets contract you will find clauses similar to:
terms under which the group insurances commented, 'The Railway Industry has The Contractor shall be liable for any loss,
are offered need to be examined: always presented Insurers with difficulties. damage or injury to any party resulting
• Is the individual company noted on the Many policy wordings may exclude work from the negligent acts or omissions of The
policy documentation? on, or on behalf of the Railway Contractor or Staff employed by the
• If another service provider/agency Industry. Bond Insurance Services Ltd has Contractor during a project.
engages the company/individual does teamed up with leading Insurer QBE at The Contractor shall ensure the provision
the insurance cover previously provided Lloyds, who carry specific knowledge of of adequate, Public Liability Insurance and
transfer with the company/individual? the Industry to facilitate a Scheme to any other suitable policies of insurance in
• Does the insurance suitably cover the ensure coverage meets their client's legal respect of the Contractor and any Staff
company/individual for the work and contractual requirements at very employed by the Contractor during a
undertaken? competitive premiums. Project in order to fulfil its obligations
• Is authority for any aspect of the Working closely with agencies, rail under this Agreement and shall make a
trading/provision of the companies and contractors, and with the copy of such policies available to the
company's/individual's services support of one of the largest rail insurers in Employment Business upon request.
delegated to the service Lloyds of London, QBE, we have As you can see you are liable for any
provider/agency? constructed a comprehensive scheme damages caused by you to third party
14 | the rail engineer | october 2008
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48