Financial Advisor

Why is Public Liability Insurance so Important for Irish Contractors?

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. The Personal Injuries Assessment Board along with the Irish Insurance Federation’s anti fraud hotline ‘Insurance Confidential’ have met with significant success since their establishment in 2003 however Insurance Fraud is still a major problem in Ireland and recent figures suggest that as much as €100M per annum is paid to fraudulent/suspect claims. In recent times Public Liability Insurance costs 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.

Public Liability Insurance [PL] provides cover in the event that the policyholder is sued by a third party who feels that they have suffered injury or loss as a result of the policyholder’s negligence (lack of care).
Consider the following examples where Public Liability Insurance will provide cover:

” You run a plumbing company. One day you are called to an office to sort out a problem in their kitchen. Accidentally, you burst a pipe, and flood the office. Your client then makes a claim against you for the damage to their carpet and computer systems which have been damaged by the water.
” You are a building contractor. While walking along scaffolding one of your men drops a piece of equipment which falls to the street, injuring a passing pedestrian. The pedestrian makes a claim against your firm.
It is important to note that Employers Liability Insurance is also extremely important for Irish Construction Companies.

Employers Liability Insurance [EL] provides cover if any of your employees suffer physical injury or death, and it is proven that as an employer you acted negligently and subsequently could have prevented their loss. If they then decide to pursue you for compensation the insurer will pay the cost of the claim.

Consider the following examples where Employers Liability Insurance will provide cover:
” You run a carpentry company. One of your employees loses a finger while using a chop saw and decides to claim against you for his injury
” You are a scaffolding contractor and are erecting scaffolding around an apartment block. While erecting the scaffolding one of your employees falls and suffers severe bodily injury. He decides to claim against your firm.
Please note that Public & Employers Liability is offered ‘hand in hand’, that is when arranging construction insuranceyou will need to arrange both Public Liability & Employers Liability Insurance together [Also known as Combined Liability Insurance] as Employers Liability Insurance is not available on a ‘Stand Alone’ basis.

Public Liability Insurance,
Employers Liability Insurance,
Construction Insurance

provides cover if any of your employees suffer physical injury or death, and it is proven that as an employer you acted negligently and subsequently could have prevented their loss. If they then decide to pursue you for compensation the insurer will pay the cost of the claim.

Tag: Public liability insurance, construction insurance, Employers Liability Insurance