It is important that your contractor holds a current liability insurance policy. Liability policies cover Public, Products and Employers Liability risks. Many contractors are sole traders and use subcontractors for the work that they do and will therefore only have Public Liability insurance.
JCT Insurance Expert can provide a quote for Public Liability Insurance for building contractors, electricians, plumbers, carpenters, architects, and project managers – click here for a proposal form.
Public liability insurance is sold in £1,000,000 lumps so typically you will see certificates where the cover is £1,000,000 £2,000,000, £5,000,000 or £10,000,000 sums. The level of insurance cover needs to be sufficient not just to cover the work on your site, but also any loss or damage that might be incurred as a result of damage to surrounding property – for example cutting through a power cable or gas main can be very expensive if this interrupts the trade of local shops and businesses.
A key thing to look for is whether your contractor’s policy covers liability for the property being worked on – if it does not then any damage that is caused to your property by the contractor during the works would not be covered. The other thing to check is exactly who is covered by the policy – if your contractor is a sole trader or is using subcontractors they will each carry their own cover so you should ask to see these certificates too.
Public liability insurance is not compulsory but is an essential requirement of many of the contract works and property being worked on/works in progress policies.
Builders that have employees who are not family members or who use labour only subcontractors will need to buy employers liability insurance. JCT Insurance expert can provide cover for employers liability insurance as part of a public liability policy. Please click here for a proposal form.