Public liability insurance
Construction contracts will typically include a clause requiring the contractor to carry insurance to cover expense, loss, liability, claim or proceedings for personal injury or death arising from the carrying out of the construction works, or loss or damage to property other than the works.
Personal injuries of employees will be covered by the contractor’s employers’ liability insurance, which is compulsory for all employers under the Employers’ Liability (Compulsory Insurance) Act. All firms who employ staff are legally required to hold Employers Liability Insurance.
Personal injury or death, or loss or damage to property of third parties is covered by public liability insurance. Common law claims for personal injury or death, or loss or damage to property can be very significant and are unlimited. The cover provided does not limit the contractor’s liability.
Public liability insurance might cover against claims by:
- Members of the public visiting the business of the insured.
- Customers.
- Clients.
- People taking part in events or activities organised by the insured.
- People watching events or activities organised by the insured.
- Independent sub-contractors.
That is, anyone that the insured interacts with as part of their business, but not employees, temporary staff, students or people on work placements (who should be covered by employers’ liability insurance).
Typically, cover will be between £1 million and £5 million and will insure business premises and activities whist making visits or working on a construction site. Insurance will normally cover:
- Damage to property and possessions.
- Personal injury.
- Legal costs, including the claimants' legal costs incurred by the insured if they are found to be at fault.
- Consequential losses such as loss of earnings (including future loss of earnings).
Public liability insurance and employers’ liability insurance are sometimes offered in a single policy which may also cover office contents and buildings insurance requirements.
[edit] Related articles on Designing Buildings
- 3D animation for insurance risk analysis.
- Building Users' Insurance Against Latent Defects.
- Contractors' all-risk insurance.
- Contract works insurance.
- Directors and officers insurance.
- Electrotechnical Assessment Specification guidance for installers.
- Employers’ liability insurance.
- Flood insurance.
- Insurance for building design and construction.
- Integrated project insurance.
- JCT Clause 6.5.1 Insurance.
- Latent defects insurance.
- Legal indemnities.
- Making sure your builder has appropriate insurance.
- Professional Indemnity Insurance.
- Public.
- Residual value insurance.
Featured articles and news
Resident engagement as the key to successful retrofits
Retrofit is about people, not just buildings, from early starts to beyond handover.
What they are, how they work and why they are popular in many countries.
Plastic, recycling and its symbol
Student competition winning, M.C.Esher inspired Möbius strip design symbolising continuity within a finite entity.
Do you take the lead in a circular construction economy?
Help us develop and expand this wiki as a resource for academia and industry alike.
Warm Homes Plan Workforce Taskforce
Risks of undermining UK’s energy transition due to lack of electrotechnical industry representation, says ECA.
Cost Optimal Domestic Electrification CODE
Modelling retrofits only on costs that directly impact the consumer: upfront cost of equipment, energy costs and maintenance costs.
The Warm Homes Plan details released
What's new and what is not, with industry reactions.
Could AI and VR cause an increase the value of heritage?
The Orange book: 2026 Amendment 4 to BS 7671:2018
ECA welcomes IET and BSI content sign off.
How neural technologies could transform the design future
Enhancing legacy parametric engines, offering novel ways to explore solutions and generate geometry.
Key AI related terms to be aware of
With explanations from the UK government and other bodies.
From QS to further education teacher
Applying real world skills with the next generation.
A guide on how children can use LEGO to mirror real engineering processes.
Data infrastructure for next-generation materials science
Research Data Express to automate data processing and create AI-ready datasets for materials research.
Wired for the Future with ECA; powering skills and progress
ECA South Wales Business Day 2025, a day to remember.
AI for the conservation professional
A level of sophistication previously reserved for science fiction.
Biomass harvested in cycles of less than ten years.
An interview with the new CIAT President
Usman Yaqub BSc (Hons) PCIAT MFPWS.
Cost benefit model report of building safety regime in Wales
Proposed policy option costs for design and construction stage of the new building safety regime in Wales.
Do you receive our free biweekly newsletter?
If not you can sign up to receive it in your mailbox here.