Construction Insurance and UK Construction Contracts

Marshall Levine and Roger ter Haar KC

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Page 140

CHAPTER 9 Liability policies

9.1 A number of different types of liability policy are liable to be called upon in connection with construction projects. Those most likely to be called into use are:

(1) public liability;
(2) employer’s liability;
(3) road traffic liability;
(4) product liability;
(5) professional indemnity (see ); and

(6) directors’ and officers’ liability

9.2 There are also other more esoteric forms of cover such as premises pollution liability and cover against liability for liquidated damages. 9.3 We do not attempt to describe all the aspects of all these different forms of policy: to do so would potentially add hundreds of pages to an already long book. Our aim is to draw attention to some aspects of some of these policies that have proved legally troublesome. For details of what cover is available in the marketplace and upon what terms it is available, the reader is politely advised to refer to the insurance brokers specialising in construction risks. 9.4 Professional indemnity insurance and directors’ and officers’ liability insurance raise some particular considerations that we refer to in a separate chapter.

Public liability

9.5 contains a public liability policy wording used by Allianz. The insuring clause in that wording provides:

The Insurer will indemnify the Insured against legal liability to pay compensation and claimants’ costs and expenses in respect of accidental (a) Injury to any person (b) loss of or damage to material property (c) nuisance, trespass, obstruction or interference with any right of way, light, air or water. For occurring within the Territorial Limits during the Period of Insurance in connection with the Business.

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