Personal liability insurance?
Wouldn’t you think that this is included automatically in your Contractors All Risks
or Professional Indemnity insurance
policy? Well, not exactly and not always. Not all policies in the construction industry include an automatic extension for personal liability of the type that be found in the Employers Liability section of the BIT 2013 Contractors All Risks policy.
So why it is so important? Almost everyone involved in the construction project – from the upper management echelon (CEO, deputy CEO of construction, deputy CEO of engineering) through to the corporate level (principal, developer, directors and officers, company shareholders) and down to the executional level (foremen, project managers, building contractors and turnkey contractor) can potentially find themselves exposed to a claim for personal liability.
But why? Since plaintiffs usually sue everyone even remotely involved and leave the courts to address the question of liability and its apportionment. The liability can be manifested in two ways: civil or criminal. If you don’t have the appropriate extensions under your various liability policies, then read on: