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Frequently Asked Questions – Construction Liability Insurance
Need to buy Public Liability Insurance but don’t quite understand what cover is provided or how much you should have? Read our frequently asked questions guide for the construction industry.
What is public liability insurance for contractors and builders?
Public and Products Liability Insurance covers accidents for bodily injury to third parties or property damage which arise in the course of your daily activities, for example damage to a client’s premises or neighbouring property whilst you are undertaking work.
Unlike Employers Liability Insurance, Public liability Insurance is not a legal requirement for businesses in the UK. But if you don’t have it and third party makes a claim against you, the impact on you and your business could be catastrophic. Accidents on worksite can happen at anytime, even when risks assessments have been carried out and safety briefings haven place.
How much does Public Liability Insurance Cost?
When might someone make a liability claim against a business or contractor?
If a member of the public is killed or injured as a result of your work. This could happen if plant, materials or hoardings are obstructing a path and someone trips over it or if materials fall from above!
If your work damages someone else’s property. You might put a scaffold pole through someone’s window or damage a neighbouring property by going through pipework.
What will public liability insurance cover a contractor for?
How much Public Liability cover should a contractor hold?
This limit is set by you based upon your requirements. When choosing this limit, you will need to decide how much cover you think you will require. This may depend of various factors such as type of clients, works undertaken or the size of contracts being work on. It is worth noting that many local authorities or large commercial clients would expect a limit of £5,000,000 as a minimum.
Do builders and contractors need Employers’ Liability Insurance?
Employers Liability Insurance covers you for liability arising from employees who sustain an injury or illness during the course of their employment with you. It is a legal requirement for all employers within the UK to hold this cover and the minimum statutory limit is £5,000,000 however most insurers provide £10,000,000 as standard
You may need Employers Liability Insurance for someone who works for you if:
- You have the right to control where and when they work and how they do it
- You deduct national insurance and income tax from the money you pay them
- You supply their work materials, a van or equipment
- Your contract states that you are responsible for their actions and supervision
What is Contract Works Insurance?
It covers work in the course of construction before it is handed over to the principal or employer on practical completion. It can pay to repair or to redo the work that is in progress if it is damaged by an insured event e.g. fire, flood, storm, vandalism or theft and includes both the permanent and temporary works.
It can cover the cost of materials, labour and tools to put the site back to the position it was before the loss occurred.
How can I compare builders and contractors insurance quotes?
Do all contractors need Professional Indemnity Insurance?
If they carry out any form of design work or give advice, we would recommend it. Construction Professional Indemnity Insurance, which also known as Design and Construct Professional Indemnity, is designed to protect contractors and sub contracted specialists, such as electrical engineers, or façade contractors for allegations relating to errors in their work or incorrect design.
On larger builds the principle contractor may provide the design or contract the services of an architect or engineer. But that doesn’t mean that a builder or air conditioning engineer is off the hook and shouldn’t hold Professional Indemnity to cover themselves for their involvement in a design and build contract.
What about tools insurance?
We can provide cover for tools, plant and hired equipment as well as solutions for items that are left overnight in a van.
Be safe in the knowledge that your business is protected.
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Clarke Williams Ltd are authorised and regulated by the Financial Conduct Authority under reference 758683. The Financial Conduct Authority’s Register can be accessed through http://www.fca.org.uk/ . We are registered in England and Wales with Companies House under number 10317065. Our registered office address is Blue Bell Court, Sovereign Way, Tonbridge, Kent, TN9 1FU.