Third party cover
Contractors public liability
Cover for the moment your work affects somebody you do not employ. If a passerby is injured, or a neighbour’s property is damaged by your work, this answers what you are legally liable to pay, up to the limit on your policy schedule. It does not cover the works you are building, and it does not cover your own staff.
Available for a single project, or on an annual basis across the operations you declare and the insurer accepts. Send us the contract and we will tell you what the liability clause actually requires. Subject to underwriting.
Third parties not your own staff
Project or annual declared operations
Broad form named parties, one policy
Not the works that is Contractors All Risk
What it covers
Your site, somebody else’s loss
Public liability answers what you are legally liable to pay when your construction work injures someone who is not your employee, or damages property that is neither yours nor the works you are building. The pedestrian on the pavement, the neighbour’s boundary wall, the car parked in the next bay.
It is the policy that faces the outside world, and it is one of several covers a construction site typically carries. Your own contract works sit under Contractors All Risk, your own employees sit under COIDA, and a mistake in advice or design sits under professional indemnity.
Broad form construction liability puts the employer, the contractor, the subcontractors and named consultants under one single project policy instead of each party relying on their own. On a site with several subcontractors that can reduce the argument about whose insurer answers, because the parties named on the policy are insured under the same wording, and subcontractors are not automatically covered just by working on the same site.
The short version
A summary only. Your policy wording and schedule decide what applies.
Request a call backIn and out
What is in, and what is not
The boundary matters more on this policy than on most, because a claim is sometimes declined here when the loss actually belonged somewhere else.
Injury to third parties
A member of the public, a visitor, or anyone on or near the site who is not employed by you, injured because of your work.
Third party property
Damage to property that is not yours and is not the contract works. Neighbouring buildings, services, vehicles and land.
The works themselves
Damage to what you are building, and the materials for it. That is Contractors All Risk, which usually carries a third party liability section of its own as well.
Your own employees
Injury to your own staff falls under COIDA, the compensation fund. Public liability answers only to people you do not employ.
Where it fits
Five covers, five different claims
A construction site usually needs more than one policy, and each one answers a different kind of loss. This is the whole set, with this page’s cover marked.
Scroll the table sideways →
| Cover | Pays for | A claim looks like |
|---|---|---|
| Contractors All Risk | Damage to the works you are building, and the materials for them | Storm, fire, theft or collapse during construction |
| Public liability this page | Injury to other people, and damage to property that is not yours | A passerby is injured, a neighbour’s wall cracks |
| Professional indemnity | Financial loss caused by your advice, design or documentation | A design error that costs the employer money |
| Design and construct | A defect in the works that traces back to the design | It was built correctly, but it was designed wrong |
| COIDA | Injury to your own employees | A worker is hurt on site |
A claim usually fits one of these and not the others, and a claim is sometimes declined on one policy because the loss actually belonged on another. If you are not sure which policy a situation belongs to, call us straight away. Notify your insurer within the time your policy requires, and we will help you get it to the right place.
Check the period, not just the limit. Cover for the construction period and cover for work you have already completed are not the same thing, and a policy tied to the works period stops when the works do. Check what your schedule says about the period of insurance, the limit, and whether legal defence costs come out of that limit or sit on top of it.
Quick answers
Contractors public liability questions
The ones contractors ask us most often.
Is public liability the same as Contractors All Risk?
No. Contractors All Risk covers the works you are building. Public liability covers injury and damage to people and property outside those works. They answer different claims, and most sites need both.
My CAR policy already has a liability section. Do I still need this?
Sometimes not, and it turns on three things: the size of the limit, how long the section runs, and who it names. Those can differ a great deal between a CAR liability section and a standalone construction liability policy, and the only way to know which is wider for your site is to read the two wordings side by side. Send us both and we will tell you whether there is a gap, rather than guess.
Does it cover my own staff if they are injured?
No. Injury to your own employees falls under COIDA, the compensation fund. Public liability answers only to third parties, meaning people who are not employed by you.
Does it cover damage to the building I am putting up?
No. That is the contract works, and it sits under Contractors All Risk.
What does a claim actually look like?
- A passerby is injured by material falling from the site
- A neighbour’s wall cracks because of your excavation
- A water main is struck and the property next door floods
- A parked vehicle is damaged by debris from your work
In each case the policy answers what you are legally liable to pay, up to the limit on your schedule, once that liability is established.
What is broad form construction liability?
A single project policy that indemnifies the employer, the contractor, the subcontractors and named consultants for their construction activities on that site, rather than each party relying on their own cover. It is worth asking about on any site where several subcontractors are working at once.
CivilSure is an insurance broker. Cover is arranged with, and underwritten by, an insurer, which is named on your policy schedule. This page is a plain language summary. What applies to you is set out in the policy wording and the schedule issued to you. Cover, limits and exclusions are subject to underwriting. If anything here is unclear, ask us before you sign.
Somebody else’s loss, your name on it?
Send us the liability clause from your contract. We will tell you what limit it requires, whether your Contractors All Risk policy already covers part of it, and what a separate construction liability policy would add.
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:
-
A passerby is hurt.
-
A neighbour’s wall or vehicle is damaged.
-
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:
-
The Employer / Principal
-
The Contractor
-
Subcontractors
-
Even Consultants (if named)
Everyone working on that site shares one protective umbrella.
Key Features:
-
No contractual liability exclusion: Even liability taken on by contract (within reason) is covered.
-
Non-accident operative clause: The insurance stays in force even if civil unrest or workplace stoppage occurs.
-
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
-
Keeps your business protected when things go sideways - not with your work, but around it.
-
Covers legal and compensation costs, even if an accident wasn’t your fault.
-
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:
-
- 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.
-
A storm damages the partly-completed roof → CAR Contract Works section pays to repair.
-
A passerby is injured by falling debris from scaffolding → CAR Liability section responds if it’s within the policy’s limit.
-
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
-
Higher limits: Many CAR liability sections have lower limits than client contracts require.
-
Broader coverage: Stand-alone liability can cover off-site work, completed operations, and contractual liability in more detail.
-
Multiple parties under one umbrella: A broad-form policy can cover all contractors, subcontractors, and consultants without each needing separate liability cover.
-
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.