Last edited 24 Sep 2020

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:

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:

Public liability insurance and employers’ liability insurance are sometimes offered in a single policy which may also cover office contents and buildings insurance requirements.

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