Auckland, New Zealand., As at the end of last year the New Zealand Transport Agency introduced new regulations that require companies that issue vehicle WoFs (Warrant of Fitness) and CoFs (Certificate of Fitness) to have public liability and professional indemnity insurance in place.
Essentially, the public Liability and professional indemnity insurance for companies issuing WoFs must be sufficient with regard to the activities the organisation has been appointed to carry out.
Businesses that issue vehicle CoFs must have public liability and professional Indemnity insurance with a minimum level of cover of $1 million.
Where a company issues a WoF or CoF, that company is certifying that a vehicle is safe to drive on the road. If something happens, the wheel falls off for example, and an accident results causing the death of a third party, accountability may be traced back to the company that certified the vehicle as being safe for the road.
A driver can turn around and say he or she had put their trust in service centre to ensure the vehicle met safety requirements.
If, for example, an inspector was negligent or missed something, the public liability insurance will cover the damages. However, if financial loss results – for example to the vehicle or in lost earnings – this may only be a loss that is covered under a professional indemnity insurance.
Businesses issuing WoFs and CoFs must comply with those requirements, they have no choice.
Insurer AMP (the policy is underwritten by Vero Insurance) has identified a risk to the vehicle inspector and have added a professional indemnity option to the public liability insurance – an all-in-one package for much less the cost than having two separate policies.
This includes $500,000 professional indemnity cover for $600 per year, compared to regular policies which cost between $1000 to $1500.