In years gone by, the cheapest public liability insurance quotes were those that you would receive under a tradesmens insurance policy. These are the policies that cover builders, plumbers, carpenters, decorators and electricians etc.
They provide the very basic cover for any damage that you may cause to third party property (ie buildings) and/or people. If the carpenter drops a piece of wood that damages a plaster wall, this is where the public liability kicks in.
But, we are seeing more and more requests nowadays for cover that also includes contract works. This is cover for the physical improvements that you as the contractor are making to a site or premises at which you will work.
The easiest example to think of, is a builder that is putting an extension on to a house. Until such time as the builder gains formal sign off from the householder that they are happy with the actual works, then the contractor is legally responsible for this. So, if the extension burns down (yes, these things do happen) ot part of it is damaged in a storm, then the contractor is reponsible.
The important point here, is that this is not public liability. The contractor has not damaged 3rd party property. Therefore, cover is required for this physical item (the extension) for such perils as theft, storm, fire etc. You used to have to purchase a separate contractors all risks insurance or contract works insurance cover.
But, most insurers nowadays allow this as an extension to a tradesmens type insurance policy. You pick a limit for contract works, at any one location (as you may be doing more than one job), which is usually in bands such as £50,000, £100,000 and upwards.
The reason we are seeing more and more requests is because appointed architects or civil engineers (working for the householder) are insisting on this cover. Also, the mortgage company that is financing or loaning the monies for the project, may insist on seeing valid proof of cover, from the contractor.
To get a suitable quote, you will need to discuss this with a business insurance broker. They have the skills and the knowledge that can help to get the best quote at the best price for you.
Tags: contractors insurance