Artists' Public Liability and Professional Indemnity Insurance
Frequently Asked Insurance Questions
Question:
I have recently been awarded a commission that requires me to have public liability and professional indemnity what's the difference?
Answer:
Public Liability insurance would normally cover the legal liabilities you would have for injury to people (including death) and damage to property, which arose from your working with or around people towards whom you and the commissioner had a legal duty of care; from your working in, on or close to property for which you and the commissioner had a legal duty to provide or ensure a healthy and safe environment. Such insurance would also cover the legal liabilities you and the commissioner would have for injury to people (including death) and damage to property, which arose from defects in any physical artwork you made and had installed for the commissioner.
Professional Indemnity insurance would normally cover the legal liability you would have for providing sound professional and specialist artistic advice to the commissioner (and its employees, agents, and sub-contractors), which was relied upon by the commissioner (and its employees, agents, and sub-contractors) and which caused financially quantifiable loss or damage to the commissioner (and its agents, employees, and sub-contractors).
Artists’ Level of Public Liability Insurance Cover
Question:
I have been asked to provide Public Liability insurance cover for £5 million - previously it was only for £2 million - should I agree?
Answer:
There is no single answer to this question, but factors to take into account should be: whether there is a considerable period of time between your securing previous insurance cover, and now, and would inflation explain the increase; whether there is an appreciable difference the nature and scale of the work for which you previously secured insurance cover, and the current work you are being commissioned to undertake; whether there is an appreciable difference between the scale and type of business and organisational profile of your previous commissioner(s), and your current commissioner(s) – suggesting that your current commissioner’s legal responsibilities to people and property are much greater than your previous commissioner(s).
Artists’ Professional Indemnity insurance – why?
Question:
I have been engaged to work on a project as a lead artist as part of the design team and they want me to confirm that I have professional indemnity - do I need this and why?
Answer:
As a member of the design team you would be professionally responsible for making sound professional and specialist artistic advice and judgements, in common with each other member of the design team. And, just as each other member of the design team would be required to have Professional Indemnity insurance cover, you would equally be required to do so. Professional Indemnity insurance would normally cover the legal liability you would have for providing sound professional and specialist artistic advice to the commissioner (and its employees, agents, and sub-contractors), which was relied upon by the commissioner (and its employees, agents, and sub-contractors) and which caused financially quantifiable loss or damage to the commissioner (and its agents, employees, and sub-contractors).
Securing Public Liability & Professional Indemnity insurance cover
Question:
How do I obtain public liability cover and professional indemnity cover?
Answer:
You should shop around for insurance premium quotations for the type and level of cover you require, either from an appropriate insurance broker (which is more usually the case) or directly from an insurance company (most insurers operate indirectly through insurance brokers, who receive a small commission from the insurers for securing your business). It is also possible, if you ask, to secure cover for a fixed period of time and/or a fixed project – rather than securing, say, annual cover.
Public Art Consultants’ Professional Indemnity insurance cover
Question:
Do I need to take out professional indemnity cover? If so for how much? How do I obtain it?
Answer:
You certainly should have Professional Indemnity insurance cover, because you are legally responsible for providing sound professional and specialist artistic and project management advice to the commissioner and artists (and their employees, agents, and sub-contractors) which, if relied upon by any of them, would make you legally responsible to them for financially quantifiable loss or damage that was caused by your giving negligent professional advice to any of them.
As for how much cover, it would be sensible to take soundings from other public art consultants about the level of cover they normally secure, from artists you have worked with, and from commissioners of public art projects (in relation to the level of cover they would normally expect from a public art consultant).
Insurance cover by others
Question:
I am working in partnership with a colleague who carries professional indemnity - will this cover me also?
Answer:
You should not rely upon other people or organisations telling or assuring you that you are covered. You should ask for a copy of the insurance policy and check whether it expressly covers you and the work you are doing.
Insurance cover abroad
Question:
I work abroad a lot and want to know if my public liability insurance and professional indemnity will cover me in other countries and do I require it?
Answer:
You should certainly secure insurance cover for working outside the UK. You should check with your insurance broker or insurer whether your insurance policy covers this situation, and whether the nature and level of you cover is reduced in any way. If your policy does not cover your working abroad, you should ask your insurance broker or insurer for a quotation for being covered for the specific project and/or a fixed period of time.
In any event, you should ask your insurance broker or insurer to advise you whether there are any special insurance requirements imposed on you by the laws of the State/Country in which you are proposing to work. For example, the laws of some States may require a minimum level of public liability or professional indemnity insurance cover for the type of work you would be doing there. You may also ask the relevant State embassy when you are applying for a permit and/or visa to work there.
Insurance cover for foreigners working in the UK
Question:
I live in both Germany and the United States - can I obtain public liability and professional indemnity to work in the UK?
Answer:
You should check with your insurance broker or insurer, in both Germany and the USA, whether your insurance policy covers your working in the UK, and whether the nature and level of you cover is reduced in any way. If your policy does not cover your working in the UK you should ask your insurance broker or insurer for a quotation for being covered for the specific project and/or a fixed period of time in the UK. If you have no insurance cover in Germany or the United States, you should consult an insurance broker or insurance company directly for a quotation for your working in the UK.
Artists’ Professional Indemnity Insurance when team working
Question:
I am currently working with a multidisciplinary team of architects, urban designers and engineers - all of whom carry professional indemnity - but as we are working jointly and not claiming individual ownership of the ideas or proposals - why would I need professional indemnity as well?
Answer:
As a member of the multidisciplinary team you would be professionally responsible for making sound professional and specialist artistic advice and judgements, in common with each other member of the team. And, just as each other member of the team would be required to have Professional Indemnity insurance cover, you would equally be required to do so. Professional Indemnity insurance would normally cover the legal liability you would have for providing sound professional and specialist artistic advice to the commissioner (and its employees, agents, and sub-contractors), which was relied upon by the commissioner (and its employees, agents, and sub-contractors) and which caused financially quantifiable loss or damage to the commissioner (and its agents, employees, and sub-contractors). It is because it would be practically impossible to prove for certain who made what contribution to the team’s creative and developmental processes, that it is essential that every member of the team achieves appropriate cover.
Further Information
Please see Public Art Online's insurance information sheet, which includes a list of companies that offer either public liability insurance and/or professional indemnity for artists and public art consultants.
You can alsorefer to the Arts Council’s website for an information sheet on insurance together with a list of useful contacts.
www.artscouncil.org.uk/publications/information_sheets.php
© Copyright Henry Lydiate 2007. All Rights Reserved.