Insurance can be a confusing business, especially if you’re a general or independent contractor. However, given the number of risks that are present on site, combined with the operational and logistical tasks you need to manage on a daily basis, the potential for accidents is high. As such, it is essential to know that you are fully covered just in case of a claim made against you. Given that claims can run into millions of pounds, being fully insured will make the difference between continuing trading or having to shut down.
General contractors’ insurance covers a number of areas:
Public liability insurance covers you against any accidents which cause injury, damage or loss to any member of the public. Designed specifically to cover unforeseen accidents, public liability insurance offers you protection for whatever happens. Cover often starts at £1 million, but this can be increased to £5 million depending upon the size and scale of your business.
Often tied in with public liability insurance, financial loss insurance is designed to protect businesses against claims of financial loss to a third party which is incurred not as a direct result of loss or damage to physical property. If a claim were made against you that did not involve an injury, damage or loss then it would not be covered under public liability; financial loss insurance would cover this instead.
Covering your business against damages caused by a product that you make or supply, this insurance is vital for contractors who supply labourers with building materials or equipment to use on site. Even if you are not the direct manufacturer of the product, you can still be legally at fault by supplying the product. Therefore, it’s essential that all contracts have product liability insurance to cover these situations.
While public liability, financial loss and product liability insurance cover a wide variety of circumstances, there will always be unforeseen situations that normal general contractors’ insurance does not cover. As such, legal expenses insurance will come to your rescue in these situations, providing cover for your legal costs, often up to £250,000, but again this depends upon your specific policy. Legal disputes can come in many forms, including VAT appeals, employment disputes and representation for compliance and regulation matters.
By having general contractor’s insurance, you know that you will be fully covered for all situations, giving you the security you need to get on with your daily routine.