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.
- 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).
 Related articles on Designing Buildings Wiki
- 3D animation for insurance risk analysis.
- Building Users' Insurance Against Latent Defects.
- Contractors' all-risk insurance.
- Contract works insurance.
- Directors and officers insurance.
- Employers’ liability insurance.
- Flood insurance.
- Insurance for building design and construction.
- Integrated project insurance.
- Latent defects insurance.
- Legal indemnities.
- Professional Indemnity Insurance.
- Residual value insurance.
Featured articles and news
It was the tallest structure in the world for 3,800 years, but to this day the exact construction techniques are a mystery.
Shortlist for the industry's most coveted award announced.
Government responds to Mark Farmer's review of industry, rejecting the call for a levy on clients.
Peter Hansford to examine what wider lessons can be learned from the fire.
Every project is subject to uncertainty. How can construction better understand uncertainty for performance improvement?
MAD Architects reveal their designs for a futuristic campus for electric car manufacturer.
Homebuyers could borrow more with better forecasting of energy bills, according to industry consortium's new report.
Read our introductory article on carbon capture and storage.
Have a look at Frank Gehry's Binoculars Building in Los Angeles.
BRE publish new Loss Prevention Standard seeking to minimise fire risk from ducting.
How do we tell which infrastructure projects will work?
CIAT announce the establishment of a Working Group in light of Grenfell and call for contributions.
In 1900, 15% of global population lived in cities. Now it’s over 50%. Which is why we need ‘hydroinformatics’ to consume smarter.
Have a look at these competition-winning designs for a new residential development in Eindhoven.