Third Party Liability
What is it?
A Public Liability policy will pay damages and/or compensation that the Insured is legally obligated to pay in regard to third party personal injury (including death) and third party property damage losses which occurred as a result of the insured’s construction and general business activities.
The policy will also provide cover for associated defence costs and/or other related expenses.
Why?
To protect against claims from third parties relating to injuries and damage which is caused by construction and other business activities.
Who needs it?
Any party who is carrying risk either contractually or otherwise relating to works under contract. This will typically include principals/owners, financiers, contractors and subcontractors of every tier.
It may also include consultants, manufacturers and suppliers in regard to their on-site activities.
What are some examples?
Example 1
A contractor may damage an underground electricity cable whilst carrying out excavation works as part of a construction project. This damage may result in local businesses being without electricity for a period of time and affect their revenues.
In this case, the policy will indemnify the insured for the costs associated with rectifying the damage to the cable as well as the losses suffered by the local businesses as a result of the damage.
Example 2
A subcontractor’s employee may incur an injury whilst working on a site.
Typically, a contractor that has care of the site will be held responsible for the injury and damages may be sought against the contractor by the injured person or the injured person’s workers compensation insurer.
The policy will indemnify the insured contractor for these damages as well as defence costs associated with the matter.
How can I purchase it?
Every client is different, that’s why our insurance service is custom designed for your needs. Click on ‘Conact us’ and you can book a meeting with Cruden Read to determine the most effective and appropriate solution.