Contractors Public Liability Insurance

Why Do I Need Contractors Insurance?

When taking on large projects for clients, be prepared to take on the responsibility of dealing with unforeseen events that may happen during the project. These unforeseen events can range from injury suffered by workers to damage to homes and surrounding property.

Having the proper insurance coverage will ensure that you and your employees are covered in case of an accident or damage that occurs during the project. If you do not have this type of insurance, it can spell trouble for both you and your client if anything were to happen that would require extensive repairs.

Although it is not legally required to have contractors public liability insurance, your client may ask you for proof of this coverage before allowing you to continue with the project. If anything were to arise, without proper contractor insurance policies in place you could be responsible for any expenses that are associated with an accident or damage during the construction process.

What Does Contractors Public Liability Insurance Cover?

It covers any accidental damage or injury caused by you or an employee, to someone else while you’re working, or as a consequence of your contracting work. If somebody is hurt or damages property because of faulty workmanship performed on the job, then that will be covered under the liability portion of the policy too. This type of policy is usually referred to as all risks cover and includes accidental physical loss or damage such as fire, flood, storms, and malicious damage. The important thing is that the risk must be covered within the terms and conditions of the policy.

FAQ’s About Public Liability Insurance and Contractors

What is a Contractor?

A contractor is someone who takes on work that would be done otherwise by employees. They might hire subcontractors or use their own employees in which case they would be looking at employers’ liability insurance. contractors provide a service to the client, and they are paid either by time or by deliverables, it is not an employee-employer relationship.

What type of contractors work in the construction industry?

The main types of construction contractors include general building contractor, civil engineering contractor, electrical services contractor, plumbing service provider and gas service provider. Other types include those who specialise in particular areas, such as roofing companies for example.

What type of contractors work in property development?

In general, there is no difference between a contracting group that works on property development as opposed to other contract work. The only difference might be specialisation within one business line, which refers to being able to have expertise in certain areas due to the amount of time spent working on that specific service. For example, you might find a contractor that works purely on large developments and another that focusses on home extensions and loft conversion type work.

What happens when claims are made?

The most common types of potential claims are personal injury, property damage, medical payments, noise pollution violation claims or unforeseen events such as bad weather.

The insured's obligation under the policy is usually to pay the premium and otherwise cooperate with the insurer in defence of covered claims. It is important to be honest and give your insurer all the information possible about what happened.

This will help them to quickly and easily either pay the claim, or dispute it as required. If you withhold information from them, you could find that your policy is invalid, and you are faced with paying the claimant yourself. This could be incredibly expensive resulting in bankruptcy or insolvency or your business.

Benefits to Having Public Liability Insurance

There are many benefits to having a bespoke public liability insurance for contractors and a good relationship with your broker.

• There is the obvious one about protecting your risk, but over and above that you will find that the premium you pay varies with the amount of cover required and can be scaled up or down as needs change.
• Also, it provides protection for anyone who might suffer loss or damage due to your activities which is often more extensive than other types of insurance.
• As well as that, it covers claims against you by customers for faulty services or defective products that you place into their care after they have bought them from you, such as an extension with a faulty roof for example.
• Finally, some clients will require proof that you have adequate insurance before they hand over jobs to you so being able to provide this will give you an edge when it comes to securing work.

To find out exactly how much cover you need and to get a free quote, simply get in touch and we will be happy to discuss your requirements.