Contractors Public Liability
Cover that protects you when accidents happen to others
When you’re building, anyone passing by, or nearby property, can get hurt or damaged. Contractors Liability (also called Public Liability -PL) covers your legal responsibility for third-party injury or property damage caused by your on-site work.
You can take it out as:
Single Project Liability: Covers one specific job from start to finish (including defects period).
Annual Liability: Covers all your projects over a year under one policy.
Request Your Non Obligation Contractors Liability Quote
Some Important Things To Know
What’s Covered
General Liability (Third-Party Liability)
This covers you if, during your work:
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A passerby is hurt.
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A neighbour’s wall or vehicle is damaged.
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A client or third party makes a claim for injury or damage.
Broad Form Construction Liability
This is a stronger, single‑project version. It gives legal cover to:
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The Employer / Principal
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The Contractor
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Subcontractors
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Even Consultants (if named)
Everyone working on that site shares one protective umbrella.
Key Features:
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No contractual liability exclusion: Even liability taken on by contract (within reason) is covered.
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Non-accident operative clause: The insurance stays in force even if civil unrest or workplace stoppage occurs.
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Limits include costs and expenses: Legal fees related to a claim are part of the same limit.
You can also broaden cover to include lateral support – essential if you’re excavating near neighbouring structures.
What’s Not Covered
Damage to your own contract works – that’s what Contractors All Risk (CAR) covers.
Injuries to your employees – they are covered under COID or WCA.
Damage to completed or handed‑over works – unless separately insured.
Liability arising from professional services (that’s Professional Indemnity – PI).
Examples On The Ground
Scenario |
What Happens |
|---|---|
| A passerby trips over your tool and breaks an arm |
PL covers medical costs and legal risk. |
| You hit a parked car while unloading materials | PL responds for the property damage. |
| A consultant’s error causes a third party injury | If included in a Broad Form policy, the consultant is defended. |
| You dig near a neighbour’s foundation without preparing |
If lateral support cover is added, damage to their property is covered. |
Why This Cover Matters
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Keeps your business protected when things go sideways – not with your work, but around it.
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Covers legal and compensation costs, even if an accident wasn’t your fault.
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Prevents an injury or damage from becoming a financial liability or reputation risk.
Frequently Asked Questions
Is Public Liability the same as Contractors All Risk insurance?
No. CAR covers your contract works (materials, structures under construction) against damage, and often has a small liability section built in. Public Liability focuses on injuries or damages to other people or their property. The liability cover in a CAR policy is often more limited than a stand-alone Public Liability policy.
Does Contractors All Risk (CAR) include construction Liability?
Most Contractors All Risk (CAR) policies in South Africa have two sections:
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- Contract Works Section – Covers the physical project (materials, works in progress, temporary works, free-issue materials, etc.) against accidental physical loss or damage from insured perils.
- Third-Party Liability Section – Often called the “Public Liability” section. This covers your legal liability if you accidentally cause injury to someone or damage to their property in connection with the project.
So yes – most CAR policies do include construction liability cover, but it is usually limited to the period of the works and to the contract site. The limits and wording may be narrower than what you can get under a stand-alone or broad-form construction liability policy.
What is the difference between CAR and Construction Liability
Feature |
Contractors All Risk (CAR) |
Construction Liability (Public Liability – PL) |
|---|---|---|
| Main focus |
Physical loss or damage to the contract works you’re building |
Injury to third parties or damage to their property |
| Cover for your own works |
Yes, under the Contract Works section |
No |
| Cover for third-party injury/property damage | Yes, but usually as an add-on section in the CAR policy | Yes – it is the core of the policy, with higher limits and broader terms |
| Cover period |
During construction and sometimes into a defects liability period |
Can cover entire project duration, annual periods, or multiple projects |
| Geographical scope | Usually limited to the contract site |
Can be wider, including off-site incidents if related to your operations |
| Extensions available |
Existing structures, SASRIA (South African Special Risks Insurance Association), hired plant, lateral support (if added) |
Lateral support, products liability, spread of fire, contractors plant liability, and higher liability limits |
| Excesses and limits | Usually smaller liability limit than a stand-alone PL policy |
Can be set much higher to match client contract requirements |
| Who is covered | Usually the contractor and named subcontractors | Can include principals, subcontractors, consultants, and joint ventures under one “broad form” policy |
| Best for |
Protecting the works and some liability during construction |
Protecting your legal liability comprehensively – especially on larger, higher-risk projects |
How does CAR and PL work together?
Scenario:
You’re building a shopping centre.
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A storm damages the partly-completed roof → CAR Contract Works section pays to repair.
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A passerby is injured by falling debris from scaffolding → CAR Liability section responds if it’s within the policy’s limit.
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Six months after completion, a subcontractor’s faulty balustrade collapses, injuring someone → A stand-alone Construction Liability policy with products and completed operations cover would respond, but the CAR policy’s liability section likely would not (because the works are completed).
Why you might still want a separate Construction Liability policy even if you have CAR
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Higher limits: Many CAR liability sections have lower limits than client contracts require.
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Broader coverage: Stand-alone liability can cover off-site work, completed operations, and contractual liability in more detail.
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Multiple parties under one umbrella: A broad-form policy can cover all contractors, subcontractors, and consultants without each needing separate liability cover.
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Longer protection: Liability for completed work can extend well beyond the construction period.
Does it cover my own staff if they are injured?
No. Staff injuries fall under COID or WCA. Public Liability only covers injury to third parties—people who are not employed by you.
Does PL cover damage to the building I’m constructing?
No. That’s covered under Contractors All Risk insurance. Public Liability only applies to third-party property damage—things you don’t own or aren’t building.
