Author – Megan Wright
In the next few weeks, months and maybe even years to come there will be a renewed focus on rebuilding South Africa. After the rubble has been cleared and the streets swept, warehouses, workshops, shopping centres and office buildings will literally have to be rebuilt. Of course, as a society and in a more figurative sense, we’ll also be rebuilding our national identity; coming together despite race, gender, creed or language to create a better and stronger country for all.
It is in such times that businesses and companies need a trusted partner that they know will come through when life takes a most unexpected turn. As your clients start construction, know that Consort Technical Underwriters is your insurance partner in rebuilding.
In this article we’ll specifically take a closer look at Public Liability Insurance and Surrounding Property Insurance and why it’s necessary to clearly understand and distinguish between these two when talking to clients about their insurance requirements.
What is Public Liability Insurance and why is it important to highlight it to clients?
Public Liability Insurance is a specific product that covers accidental death, injury or damage to a third party’s property during or in connection with the contractor’s works being carried out. The third party property can be any property located on, or adjacent to the construction site, which is not held in care, custody or control by the Contractor. The insurance will cover the employer, all contractors and subcontractors against liability claims.
Public Liability Insurance is an extension to the Contractors All Risk (CAR) cover as it is otherwise specifically excluded.
It’s important to remember that the average person has little knowledge or experience of the scope of potential liability hazards that accompany their business. It’s exactly for this reason that brokers should help educate their clients of the extent and limitation of their cover when discussing their individual insurance needs for a project.
Every person and every company or public authority owes a duty of care to the general public and any such individual or group causing loss or injury to others and / or their personal property, may be held responsible by law to recompense the party suffering loss or injury.
Liability is incurred not only in respect of a person’s own actions or omissions, but in respect to those he employs and others acting on his behalf, for example, subcontractors on the contract site.
What is Surrounding Property Insurance?
The SPD extension refers to property in the care custody and control of the Insured and being worked upon. Surrounding Property Insurance covers the employer and the contractor against loss of or damage to property (excluding the works) which is in the contractors or subcontractors care, custody or control and has occurred as a direct result of work being carried out in delivery of the insured contract.
Fortunately, Surrounding Property cover can be included in the CAR policy. Ultimately, it’s up to the broker to ensure it’s included and that the correct or appropriate Limit of Indemnity is assigned.
Do you have any further questions about Public Liability and Surrounding Property insurance? Contact your broker today. Brokers who would like to learn more about our CAR product can contact us here.