What’s included on a construction insurance policy?
You may need to consider a number of potential liabilities that you are likely to face in the course of your day to day work. There are three principle covers that you will need to consider when taking out a policy:
Professional Indemnity Insurance
It’s likely that you will be considered the overall expert in charge of the site. Your subcontractors may find ‘real world’ issues with the implementation of an architects plan, for example, and it may fall on you to make a decision to deviate away from the specification for perfectly good reasons. Giving advice like this leaves you vulnerable to potential claims that your input was in some way defective and has led to material loss of some description. Professional Indemnity insurance (PII) can protect you from legal costs as well as any subsequent payment that might be awarded in such a situation.
Public Liability Insurance
Public Liability insurance protects you in the event of a claim made by a member of the public that they have been harmed or suffered a loss as a consequence of your business activity. It’s often a contractual requirement that you have Public Liability Insurance in place. Indemnity (the maximum level of cover that the policy can pay out) levels vary to reflect your particular requirements.
Employers Liability Insurance
Employers Liability insurance is a requirement for any business employing staff to work under their control. That can include sub-contractors (irrespective of whether they have their own insurance) and casual workers, as well as workers on the payroll. Working in the high risk environment of the construction sector, it’s particularly important that your business is protected from potentially expensive claims, in the event that something did go wrong.