Here is what you need to know about AHCI’s builders’ insurance and what each policy covers.
- Public Liability
It covers damage or accidental injury to third parties. Here, a builder’s public liability cover protects against any damage that happens during their job. It covers everything from damage to parked cars, broken windows or any other type of damage when moving construction materials. Keep in mind that this cover protects against injury or damage caused to the public and their property, besides yours.
- Product Liability
It protects against damages or injury caused by the products supplied by the insured individual. Keep in mind that even if a tradesman supplies products or materials, the responsibility for any defects is taken up by the manufacturer. The tradesman/supplier will take responsibility for repairing or replacing the faulty product.
- Contract Works
It covers damage to buildings or extensions during construction that are being worked on when incomplete. If an extension isn’t complete, it may not be listed on the home insurance policy. Additionally, if there is a fire or storm that damages the extension before it is complete, the contractors are not to blame. Contract works policy is in policy to cover any losses incurred by the tradesman and homeowner during the project.
- Contractors All Risk
It is a policy package for contractors. It covers everything discussed above as well as insurance for their tools and machinery. This policy package protects contractors in the eventuality that there are losses incurred during the project.
- Professional Indemnity
This policy protects clients in the event of any negligent design, service or advice provided by experts. If a contractor advises a client to take a certain course of action or specifies different dimensions or materials for a job they are doing (such as designing an extension) and everything turns out to be incorrect forcing you to incur a loss, you may make a claim against the professional indemnity policy.
Keep in mind that professional indemnity is more uncommon than other types of policies, except for architects, surveyors, engineers, project managers and other types of contractors who are offering professional services. If you are hiring a contractor for a straightforward job such as plastering, basic plumbing or much more, it is unlikely that you will need this type of cover. However, if you are in doubt, you can discuss this with your contractor and request them to get the policies so your project is completely insured.