Understanding Public Liability Insurance
A form of insurance coverage known as “public liability insurance” protects the policy holder from any legal liability resulting from accidental harm to third persons or damage to their property. It covers the price of making compensation claims, legal fees, and other costs associated with the incident. Public liability insurance only provides coverage for third-party claims; as a result, it excludes compensation for any harm or loss sustained by the policyholder or their staff. Intentional conduct, contractual liability, and specific types of losses are among the exclusions and limitations to the public liability insurance coverage. Public liability insurance differs from other types of insurance, such as product liability insurance and professional indemnity insurance, which protect against various hazards.
How Public Liability Insurance Protects Homeowners
Importance of Verifying Builder's Public Liability Insurance
Working with contractors who lack public liability insurance carries a number of concerns, one of which is that homeowners could be held responsible for any accidents or damage that arise during the construction phase. As a result, it is essential to confirm the builder’s public liability insurance is current before signing a contract.
Homeowners can verify the builder’s public liability insurance by requesting a copy of their certificate of currency or policy document. To make sure the policy is adequate for the project’s scope, it is crucial to review the coverage limitations and exclusions.
Verifying a builder’s insurance guarantees that the builder is adhering to industry standards as well as protecting the homeowner from potential liabilities. If a homeowner doesn’t check a builder’s insurance, there may be legal and financial repercussions.
Protecting Your Home with Public Liability Insurance
For homeowners to be safeguarded against potential financial losses due to property damage or personal injury brought on by a builder’s negligence, public liability insurance is essential. Homeowners can choose a builder for their building projects with confidence if they are aware of the coverage, restrictions, and limitations of public liability insurance. We strongly advise every homeowner to check a builder’s insurance before signing a contract to make sure they are sufficiently covered. As a construction lawyer with over 10 years of experience, I highly recommend using our “Builder License and Insurance Verification Checklist” to assist in this process. Always remember that the best course of action for a homeowner is to take precautions to protect themselves.