If you work in the trade industry, you’re likely often working outside, in the elements. As such, sometimes, in the blink of an eye, or in this case an unexpected gust of breeze, accidents can happen, no matter how experienced you are.
Recently, one of our long-time clients – a professional painter and roofer – was on-site repainting a domestic roof. It was a calm day, the job was straightforward, and everything was going to plan. Until it wasn’t.
The Oh No Moment
A brief gust of wind carried overspray from the roof to a car parked in the neighbouring driveway. The damage wasn’t immediately obvious, but it clearly caused some damage to the car and, when the owner noticed it, they contacted the company.
Time to Lodge a Claim
For any painter/contractor overspray can be one of those frustrating, unexpected accidents that you could describe as an “it-could-happen-to-anyone” moment. But when it does happen to you, it certainly pays to have liability insurance in place. Once the issue was reported, our client got in touch with our Penberthy Claims Team straight away.
A Smooth Claims Process
The insurer asked for a few key details:
- Detailed Reports and Photographs: Evidence of the damage to neighbouring vehicle and any other third party property
- Estimates for Repair Costs: Quotes from auto detailing services/panel beater which was provided by third parties
- Client Statements: The worker who completed the job was able to provide a statement of details of the event.
With these steps efficiently completed by the client, our Claims team took over from there to finalise the claim lodgement.
A Quick Outcome
The claim was fully resolved, and the neighbour’s vehicle was restored — a $14,000 job covered in full. The quick turnaround not only protected our client’s bottom line but also their professional reputation, which matters deeply in any small or medium business.
The claims team swift action in navigating the claims process successfully removed any ‘back and forth’ between client & insurer making it a stress-free process as well.
Lessons Learned
There’s two lessons here. Firstly – risk management – could more have been done to minimise the chance of one of those fateful ‘Oh No’ moments? Maybe the car should have been moved prior or was the paint of the right consistency for the working environment? These are good questions for next time – but sometimes, even when you do everything right, the unexpected still happens. And that’s where the second lesson comes in.
While taking all practical measures reduces risk, it cannot eliminate it entirely – a claim can still happen. This is why a Liability insurance policy is crucial for protecting you when engaging in work on behalf of a third party.
Also, it’s important to remember that not all claims go as smoothly as others. In the example above the client was covered in full for the damages, but this isn’t always the case, as liability insurance legally only indemnifies you for indemnity value. What that can mean is that, say as a builder you cause damage to a third-party gate that was 20 years old but the replacement of the gate is $5,000, there’s a likelihood the liability insurance would not pay out $5,000, as the insurer would depreciate the loss by the age of the gate.
Why It Matters
At Penberthy, we know how quickly a minor incident can turn into a major financial stress. For all the reasons we have just stated – due to the inherent complexity of Liability insurance policies – understanding and navigating a claim can be challenging.
Having the right cover in the first place can make a fundamental difference to the outcome.
And, in the event you are held liable for third-party damage or losses, it is imperative to speak with your broker at once to ensure proper steps are taken. Our claims team works closely with clients and insurers to make the process fast, fair, and as stress-free as possible.
It’s about having the right people beside you, every step of the way. And that’s what we’re here for.
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Disclaimer: The information in this article is for general purposes only and doesn’t constitute financial, legal, or professional advice. Please consult one of our financial advisers or brokers for advice tailored to your specific situation.
