Is Public Liability insurance all your customer needs?

Did you know that Public Liability insurance does not cover the damage caused to contracted works? We explain why here...

Public Liability (PL) insurance is the 'go to' insurance policy for small businesses and contractors who primarily work in customers' homes and businesses. 

PL insurance covers the insured for a variety of different scenarios that arise in the course of their contract works, in relation to third party property damage or bodily injury. 

In this context, "contract works" means those works that any contractor or service provider has been requested to do, whether in person, by phone, via a formal estimate or from a written contract of works.

PL insurance covers the insured for accidental damage and/or bodily injury to third-party property or persons, as a result of negligence while carrying out their works. This means any subsequent or resultant damage is covered in principle. For example, it covers damage to existing flooring as a result of a plumbing leak due to a pipe being incorrectly fitted.

It is not designed to cover the damage to the contracted works. 

An example of an excluded item under PL would be the cost of buying and reinstalling a carpet, if the insured fit it as part of their contracted works and subsequently damaged the carpet, this would be considered a contract works claim.

As the damage occurred before practical completion, it would not be covered under Public Liability. By taking our Contract Works cover, the insured would be covered in this type of situation.

What is contract works cover and when should it be taken out?

Contract works cover is an optional section that can be purchased under a PL policy for manual trades. It provides a greater degree of cover while carrying out any contracted works, which covers the insured for damage to their contracted works before practical completion. 

We receive a number of claims where the insured wishes to claim for damage to the works they were contracted to carry out. They would need to have the contract works extension for their claim to be considered.

As part of our drive to treat customers fairly, we felt it would be a great opportunity to highlight the benefits of this cover, so customers receive the best advice around our products and services. 

If you have any questions around contract works cover, please contact a member of the team who will be happy to help you. 

Click here to contact the team.

picture of broken tiles on roof




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