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.
- Employers Liability Insurance: This cover is mandatory by law if you have employees 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 have sold or supplied under the contract
Many contractors are sole traders and use subcontractors for the work that they do and will, therefore, only have Public Liability insurance.
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.