It is important that your contractor holds a current liability insurance policy. The basic components of Liability Insurance are:
- Public Liability Insurance: This covers claims from third parties for property damage or injury. Public Liability insurance is not required by UK law but is highly recommended as it can provide key legal protection to your works when in close proximity to the public.
- Employers Liability Insurance: This cover is mandatory by UK law for people you employ via contract or in an apprenticeship. if you have employees this will covers injury to your employees as a result of your negligence.
- Products Liability Insurance: Covers damage which is the result of a defective product you, the tradesman have sold or supplied under the contract. Products liability insurance will help to cover legal fees if someone decides to take legal action against you.
Many contractors are sole traders and use subcontractors for the work that they do and will, therefore, only have Public Liability insurance.
When your business has taken our public liability insurance, whether short or long term it is important to know the insurers’ duties which are usually: Defend your business in the case of legal pursuit, indemnify and settle a reasonable claim.
A key thing to look for is whether your contractor’s policy covers liability for the property being worked on and know 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.
Insurance is imperative for most businesses, follow the links below to find out more or simply contact us for further information, advice and quotes on liability insurance.