The world of construction insurance can be confusing.

To make sure you don’t get lost in a minefield of policies and acronyms we have summarised the main types of insurance you need to be aware of for your development project.

Read on to make sure you know your EL from your PL and of course your structural warranty!

1. Public Liability Insurance

What is it?

Public liability (PL) insurance protects against liabilities for injury to third parties (non-employees) or their property.

Who needs it?

If you work near other people and/or their property, which is basically anyone in construction, you should consider having PL insurance. This will ensure you are covered against any potential claims for damage to the person and/or their property.

2. Product Liability Insurance

What is it?

Product Liability Insurance protects against liability for injury to people or property arising from products you supply, manufacture or even import.

Who needs it?

If you supply, manufacture, adapt or import (particularly from outside the EU) products used by other people or on construction sites then you should consider this cover.

3. Employer Liability Insurance

What is it?

Employer Liability (EL) insurance protects against liabilities to employers for injuries or illness.

Who needs it?

If you are an employer, EL insurance is compulsory. You may also want to look into EL insurance if you are building your own home as injury to volunteers or sub-contractors could spark a claim against you as an ‘employer’.

4. Contractors All Risk Insurance

What is it?

Contractors All Risk (C.A.R.) insurance protects against physical damage to works and site materials that you were contracted to undertake. These types of losses are normally excluded under a regular Public Liability policy although they may be sold together.

How does it work?

If a contractor causes damage to the element of the property they were contracted to conduct works on, standard PL insurance may not cover you whereas the C.A.R policy would cover costs associated with rectifying the damage.

Who needs it?

Employers and contractors.

5. Professional Indemnity Insurance

What is it?

Professional Indemnity insurance protects against claims for loss or damages arising from professional negligence or negligent advice.

Who needs it?

If you provide advice or hold design responsibility for a site then you should consider Professional Indemnity insurance.

6. Structural warranty

What is it?

A structural warranty provides building owners with 10 years of protection from ‘latent defects’ to the structure of a building (defects that occur during the build period but are not discovered until after completion).

Structural warranties are usually bought by the builder or developer but the warranty itself will provide cover for the person who purchases the completed building i.e. the owner.

Who needs it?

Anybody building or buying new buildings.

Find out more about the structural warranties LABC Warranty provide for new build residential and commercial buildings.

 

By Craig Ross