Working in construction means spending time on building sites, working around members of the public and carrying out work on other people’s property. Even with careful planning and good safety procedures, accidents can happen. Public liability insurance for contractors in Northern Ireland can provide important protection if your work causes injury to another person or damage to their property.
What Is Public Liability Insurance?
Public liability insurance is designed to protect businesses against certain claims made by members of the public or other third parties.
For example, a claim could arise if someone is injured because of your work or if you accidentally damage property while carrying out a job.
Depending on the circumstances and policy terms, public liability insurance may help cover compensation and associated legal costs following an insured claim.
Why Is Public Liability Important in Construction?
Construction businesses can face greater liability risks because work often takes place on sites belonging to clients or alongside other contractors, employees and members of the public.
Potential incidents could include:
- A member of the public being injured near your work area
- Accidental damage to a client’s property
- Tools or materials causing injury to another person
- Damage caused while carrying out building work
- An incident involving work being completed away from your normal premises
The risks will vary considerably depending on the type of construction work you carry out.
Is Public Liability Insurance a Legal Requirement?
Public liability insurance is generally not a legal requirement for businesses in Northern Ireland.
However, that does not mean contractors will never be required to have it.
Clients, main contractors or organisations may require you to hold a certain level of public liability insurance before allowing you to begin work or enter a site.
You should therefore check the insurance requirements of a contract before agreeing to carry out the work.
How Much Public Liability Insurance Do Contractors in Northern Ireland Need?
There isn’t one level of public liability cover that’s suitable for every construction business.
The appropriate limit can depend on factors such as:
- The type of work you carry out
- The size and value of your projects
- Where you carry out the work
- The risks associated with your trade
- Requirements set by clients or main contractors
- The size of your business
Before accepting a contract, check whether it specifies a minimum level of public liability insurance.
Does Public Liability Cover Employees?
Public liability insurance is designed primarily for claims involving third parties rather than your own employees.
Employers’ Liability Insurance is separate from public liability insurance and is designed to cover different risks.
Construction businesses should therefore consider their overall insurance requirements rather than assuming public liability insurance covers every risk they face.
Does Public Liability Cover Tools and Equipment?
Public liability insurance does not normally exist to protect your own tools, plant or equipment against loss or damage.
Construction businesses may need separate cover for items such as:
- Hand and power tools
- Owned plant and machinery
- Hired-in plant
- Equipment kept on-site or in vehicles
The cover available and any conditions will depend on the policy selected.
Is Public Liability Insurance Enough for a Construction Business?
Public liability can be an important part of a contractor’s insurance arrangements, but it may not provide all the protection a construction business needs.
Depending on your activities, you may also need to consider cover such as Employers’ Liability, Contractors’ All Risks, Contract Works, Plant and Machinery, Tools and Equipment and other forms of construction and contractors insurance.
The right combination will depend on your trade, employees, projects and individual circumstances.
Finding Construction Insurance in Northern Ireland
Every construction business is different. An independent tradesperson carrying out residential work may have very different insurance requirements from a larger contractor managing multiple projects and employees.
At Dolmen Insurance Brokers, our commercial insurance team can discuss your business, the work you carry out and the risks you face before helping you explore suitable insurance options.
If you’re looking for Construction & Contractors Insurance in Northern Ireland, speak to our team to discuss your requirements.
Disclaimer
The information provided in this blog is for general guidance and informational purposes only. While every effort has been made to ensure accuracy at the time of publication, Dolmen Insurance Brokers Limited accepts no responsibility for any errors, omissions or changes in legislation. Insurance policies and cover requirements may vary depending on individual circumstances. This blog does not constitute legal, financial or insurance advice.
Readers should seek professional advice tailored to their particular circumstances before making any insurance decisions.
Dolmen Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 978635.
