Public Liability Insurance for Contractors

While not legally required, it’s something contractors can consider because some clients and main contractors require proof of Public Liability insurance before work begins. It protects you if your work causes accidental injury or property damage.

Employers’ Liability insurance can be a legal requirement if you have employees. However, contractors can also consider Public Liability insurance and Professional Indemnity, Tools cover or Contract Works insurance.

Contractors' cover limits are determined by project values, site risks and public-sector requirements.

Our contractor cover levels:

• £1 million
• £2 million
• £5 million
• £10 million (available via phone only).

Factors that determine the right amount:

• Whether you work on domestic or commercial sites
• Use of subcontractors (bona fide or labour-only)
• Work at height, depth or in public areas
• Interaction with the public or neighbouring properties
• Installation work that could cause future damage

If you tender for public-sector or commercial work, the contract will usually specify the minimum level of Public Liability insurance required.

Some contractors and subcontractors need their own Public Liability insurance. Even if you’re working under a main contractor, you should never assume you’re covered by their policy. Many site managers, principal contractors and local authorities require every contractor entering the site to provide proof of their own cover before work begins.

If you hire subcontractors, the rules differ:

• Labour-only subcontractors (LOSC) are usually treated like employees and must be declared to your insurer.
• Bona fide subcontractors (BFSC) must hold their own Public Liability insurance and must be declared to your insurer.

Failing to declare subcontractors properly can invalidate your policy.

You may be held responsible for accidental injury, property damage, faulty installations, or errors in advice. Public Liability and Professional Indemnity insurance help protect against these risks.

Not always. Many main contractors’ policies do not extend to subcontractors, so don’t assume you are covered by them. Always check with the main contractor before work begins.

The cost of contractor Public Liability insurance depends on several factors specific to the work you carry out. Insurers typically consider your trade, project risk level, whether you use subcontractors, your annual turnover, number of employees, and whether you work at height or depth. Your claims history and chosen cover limit (e.g. £1m, £2m, £5m or £10m) will also influence the price.

You can get a quote online in minutes or speak to a specialist adviser. You’ll be asked for your trade, turnover, number of employees or subcontractors, and where you work.

For Insurance at Trade Prices - quote and buy your construction and tradesman insurance online now.