- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 27 Sep 2018
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).
- 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.
- JCT Clause 6.5.1 Insurance.
- Latent defects insurance.
- Legal indemnities.
- Making sure your builder has appropriate insurance.
- Professional Indemnity Insurance.
- Residual value insurance.
Featured articles and news
A lighthouse history from Eddystone to Fastnet. Book review.
Telling the story of the Government Code and Cipher School.
Are you an experienced writer with a practical understanding of the industry?
Hagia Sophia, Istanbul.
New Dwelling House at Grange View.
The causes of sinkholes.
The growth of megacities.
The restoration of Big Ben
Improving fire-safety design with computer modelling.
Sound insulation testing.
Making commercial property more efficient.
SF6 is at the heart of the electrical industry.
Caring for graves and memorials at 23,000 locations.
A return to historical forms and local identities. Book review.
Black water recycling.