For the Construction Industry, Public Liability Insurance in today's litigious society is more important than ever. As a construction contractor, it is essential that your business holds public liability insurance as your business activities mean that you can be sued by the public for your negligence. Although the 'claims culture' in Ireland is not as rampant as in the USA or the UK, more and more people, instead of accepting that loss or damage can happen by accident, are encouraged to believe that it must have been through someone's negligence - with the result that they sue hence the need for Public Liability Insurance. In particular, the arrival & growth of 'no-win no-fee' agreements and legal expenses cover has meant that access to the courts has never been easier. This ease of access, together with the perception that judges will award compensation in virtually every case has resulted in the growth of Public Liability claims in the last decade. In 2006, 18 were Employers Liability claims. In the UK last year there was ?5.5 billion paid out in liability insurance claims. In recent times Public Liability Insurance premiums have reduced to levels not previously seen since the last millennium and the premiums currently available to contractors mean that Public Liability Insurance is now more affordable than ever. Please click here for more information on all areas of construction insurance including Public Liability & Employers Liability Insurance What is public liability insurance? Public liability insurance is an insurance policy designed to cover your business in the event that you cause bodily injury or death to a member of the public or damage to a third parties property. A third party could claim that as a direct result of your negligence they have suffered a loss whether it is damage to their property or they have suffered a bodily injury. In the event that you are pursued by someone who feels that your business activities are a direct result of their loss they could sue you for compensation/damages. Although public liability insurance will not prevent claims from happening it will cover the cost of compensation if there is a claim. Public liability insurance claims are notorious for running into hundreds of thousands of Euro. If you do not have public liability insurance you could be liable to pay the cost of the compensation awarded against you. Unfortunately, if you are unable to pay the compensation a court may pursue you for your assets such as your home, vehicles and any other assets. If you have public liability insurance then the policy will pick up the cost of the claim minus the excess which is usually around €1,000. Is public liability insurance compulsory by law? No. Unlike motor insurance, Public liability insurance is not compulsory under Irish law. It is however essential insurance cover for a business to have. In the event that you cause damage to another persons property or cause death or bodily injury you can be sued for compensation/damages. Without Public Liability Insurance you will be liable to pay for the compensation awarded against you/your business which can run into hundreds of thousands of Euro. Furthermore, many primary contractors refuse to allow sub contractors operate on site with proof that they hold adequate public & employer's liability so although it may not be a legal requirement to hold this cover in practice it is necessary to perform contracts. Is public liability insurance and product liability insurance the same thing? Product liability insurance will cover your business in the event that you provide a product to a third party which due to it being faulty or its poor design it causes damage to property, death or bodily injury. Public liability insurance will cover your business in the event that due to your negligence (lack of care) a third party suffers a loss i.e. bodily injury or death and/or damage to property. Without Products Liability cover a public liability insurance policy will not cover you in the event that you provide a faulty product to a third party however product liability is usually included with a public liability insurance policy. Under a public liability insurance policy you will typically be covered for an equal amount of products liability E.G. - If you have €2.6M public liability you will have €2.6M Products Liability. Is public liability insurance expensive? Public liability insurance rates have reduced significantly over the last five years and are nowhere near the ridiculous levels reached in 2001/2002. Premiums vary depending on your business activities, the level of cover you require, your turnover and the number of employees your business has. At Keystone Insurance we deal with over 15 construction insurers to ensure that we provide our customers with the best possible premiums and the most comprehensive cover available. How fast can I get quotation for public liability insurance? The time it takes to get a quotation for public liability insurance depends on the size and complexity of your business. If you are a small tradesman with fewer than five employee's quotations can typically be given instantly. If your business is classed as high risk (i.e. asbestos removers and civil engineers etc) quotations can take longer although we usually achieve a 24 hour turnaround. Can I buy public liability insurance on its own? You are able to purchase public liability insurance in isolation (i.e. on its own), although product liability insurance typically comes free with it. Some insurance companies will not sell you public liability insurance without employer's liability insurance if your business has employees and it is essential that you hold employers liability insurance if you have any employees. What level of public liability insurance cover should my business have? The typical level of cover under a public liability insurance policy is €2.6 million although it is possible to get lower and higher amounts. Many larger contracts & local authority contracts will require €6.5 Million cover. In the event that higher levels are required for specific contracts this can be arranged. What is the difference between employer's liability insurance and public liability insurance? Employer's liability insurance will cover your business in the event that one of your employees sues you claiming that as a result of your negligence (lack of care) they have suffered a bodily injury or death. Public liability insurance on its own will not cover your business against a claim from an employee so its essential that you hold employers liability insurance if you have any employees or use 'labour only' sub contractors. What are the consequences of me not having public liability insurance? Public liability insurance will cover your business if a third party decides to sue you for compensation as due to your businesses negligence (your lack of care) they have suffered a loss, i.e. bodily injury and/or death. Public liability insurance claims are becoming more frequent as members of the public have a greater awareness of their rights and since the introduction of no win no fee claims help people have found it even easier to make claims against unsuspecting businesses. Public liability insurance claims easily run into hundreds of thousands of Euro, if you business does not have insurance you will be liable to pay whatever amount is awarded against you. Click here to visit our website http://www.keystone.ie for more information
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