LIABILITY INSURANCE

 

Liability insurance provides the contractor with protection from claims arising from injuries or damage to other people or property.

 

Liability insurance forms the core insurance protection of any contractor. Such cover is normally checked by contractors customers and/or employers prior to work commencing.

 

The two main types of liability insurance are employers and public/products liability. Both can be combined into one policy.

 

EMPLOYERS LIABILITY

 

Employers liability is a protection for the contractor against claims made upon him by his employees or labour only sub-contractors, for death, injury or disease sustained while they are work for which the contractor can be held legally liable. Since 1971 it has been legally necessary for employers to insure against this risk. Cover is normally £10 Million Indemnity.

 

PUBLIC LIABILITY

 

Public Liability is a protection for the contractor against claims made upon him for bodily injury (other than those covered under employers liability) or damage to property for which the contractor or his workforce can be held liable. Cover is usually limited to £1 Million Indemnity but many local authorities require cover increased to £5 Million Indemnity or even £10 Million Indemnity.

 

PRODUCTS LIABILITY

 

Another important area which can be included is the liability which can arise for accidental injury sustained by or accidental loss or damage to the property of third parties arising from defects in goods sold or supplied by your business (Products).

 

PROPERTY OWNERS LIABILITY

 

Property owners liability insurance is a protection against claims made upon the landlord/property owner for bodily injury or damage to property for which the landlord can be held legally liable. Cover is usually limited to £1 Million Indemnity but can be increased as required. Such cover is usually a standard part of property insurance.

 

DIRECTORS & OFFICERS LIABILITY

 

Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy. Cover can usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.

 

 

 

 

 

CONTRACT WORKS

 

ANNUAL POLICY

 

An annual Contract works covers all the contractor’s unspecified sites in any one year limited to the maximum any one contract value stated on the policy. Cover is for materials and contract works in course of erection generally against loss or damage for all unspecified contracts undertaken in a year. Cover can be extended to include own plant, site huts, tools, show houses and hired in plant. Risk of loss or damage by fire, theft, storm and malicious acts are usual types of cover included. Insurance can also be arranged for a specific site.

 

SPECIFIC SITE POLICY

 

A specific Contract works policy restricts cover to one contract. The name, nature and contract address is specified on the policy. Cover is for contractor’s materials and contract works in course of erection generally against loss or damage at the unspecified contract location. Cover can be extended to include own plant, site huts, tools, show houses and hired in plant. Risk of loss or damage by fire, theft, storm and malicious acts are usual types of cover included. Insurance can also be arranged on an unspecified annual basis.

 

SUMMARY OF COVERS THAT CAN BE INCLUDED

 

A) Contract works

 

i) The site: The permanent and temporary works executed in performance of the contract and materials for use in connection therewith.  Whilst on the contract site or adjacent thereto until the issue of a certificate of completion or until taken over by the principal and /or thereafter where the Insured is required to insure under the terms of the contract.

 

ii) Transit: whilst in transit (other than by sea or air) in the United Kingdom to or from the contract site

 

iii) Maintenance: During the period of maintenance or defects liability not exceeding twelve months:

 

1) arising from a cause occurring prior to the commencement of such period or

 

2) occasioned by the contractor in the course of any operations carried out by him for the purpose of complying with his obligations under the maintenance or defects liability clause in the contract.

 

B) Employees personal tools and effects

Personal tools and effects the property of the Insured’s employees other than motor vehicles, precious metals, precious stones or articles made there from or money.

 

C) Owned plant

Contractors’ plant the property of the Insured or on hire purchase or leased to the Insured comprising all types of contractors’ plant including scaffolding, temporary buildings, site office contents, site welfare facilities or as more specifically described in the schedule.

 

D) Hired-in plant

Contractors’ plant hired-in by the Insured but not on hire purchase or free loan to the Insured comprising all types of contractors’ plant including scaffolding, temporary buildings, site office contents, site welfare facilities or as more specifically described in the schedule. Including continuing hire charges in consequence of loss or damage covered under thsi section.

 

E) Free-issue materials

Free-issue materials supplied by the principal or his agents and for which the Insured is responsible under the terms of the contract. Provided that the total value of all such free-issue materials is included in any declaration made.

 

J) Expediting expenses

the costs necessarily and reasonably incurred by the Insured in making temporary repairs and expediting permanent repair