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Posted By Ronofcam
Morning all,
Simple question, really. Not my specialist area, but wondered if anyone can shed any light.
A principal contractor (has employer’s and public liability insurance) is working on site building a house directly for the client and employs Joe Bloggs Glazing Services (JBGS) to fit some windows. JBGS has only employer’s liability insurance. Let us say a window fell out in 6-months’ time and killed Mrs Miggins (whose house it was).
Does JBGS’s lack of public liability insurance make any material difference, or does the principal contractor’s insurance cover it (any H&S prosecutions notwithstanding).
By-the-way, this is hypothetical. ?
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Posted By Raymond Rapp
Rono
Not my specialist area either but, I would have thought the PC's insurance would cover the hypothetical scenario you have mentioned. The question is whether the PC can claim from the subbie's insurance? If they have none then it is unlikely. The PC might consider a civil claim, on the proviso they can prove the window falling out was due to some form of negligence by the subbie.
Ray
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Posted By Stuff4blokes
Ronofcam, the answer on whether the PC's insurances would pick up any civil liability for a failing of the subbie is specific to the terms of the policy in force. If it has been well negotiated then it should, but equally may be subject to some imposed exclusion by the insurer.
If this moves beyond the hypothetical then the insurance broker will be best placed to answer.
The question of whether the PC should be appointing a sub-contractor without adequate insurances in place is one for the PC's risk manager to consider.
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Posted By Phil Grace
Ronofcam
Your scenario illustrates one of the golden rules of employing sub-contractors... check that they have the appropriate insurance, that it is in force and that the levels of cover are suitable/sufficient.
In the absence of Public Liability (PL) cover for the sub-contractor I am guessing that the estate of the deceased would sue the PC since there was a contractual relationship between them ... I would also suggest that there would be a claim in negligence for failing to employ competent sub-contractors, failing to ensure that suitable checks were carried out etc.
Whether the PC is protected by their own PL insurance is another matter... the case could still be decided even if their insurer said that there was no policy cover. In that case the PC would have to pay any compensation awarded themselves.
Hope this helps.
Phil
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Posted By Ian-Edwards
From an insurance broker...!
Phil's correct.
It's important for contractors that employ "subbies" to declare sub-contractor payments to public and products liability insurers and request "contingency insurance cover". This should be provided cheaply and dots the "i's" very well in this type of instance.
Many Contractors Liability insurance policies these days insist that sub-contractors public liability insurance arrangements are checked and minimum indemnity limit (eg. £2m) are arranged.
Ultimately, it's likely that liability would attach directly to the actual sub-contractor that did the work (insurance or no insurance) if they can be traced!
Hope this helps.
Ian
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Posted By Phil Rose
Surely the issue is WHO is liable, not who is insured? When somebody is found liable then they are responsible for paying for those liabilities i.e. compensation in this case, awarded by the courts. If they have appropriate insurance then the insurer pays up on their behalf, if they don't ..........
Arguably, if the claimant is aware that the sub contractor does not have PL insurance then they may chose to pursue the PC, but the existence or not of insurance cover is not really the issue. Establishing liability for the alleged negligent act is.
As has been said, I would assume that the PC had made suitable enquiries as to competence of the SC and ensure that they have appropriate insurance.
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Posted By Ian-Edwards
Agree, but thought it was an insurance question! The heading's a bit of a giveaway....
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Posted By SteveD-M
In this hypothetical answer it would be the PC's insurance that would foot the claim..as it would appear their contractor control system isn't working or has some deficiencies...It is a liability and insurance question...
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Posted By Phil Rose
Thank you for pointing that out Ian! But i am not sure that you can separate the two as conveniently as some people would like, the two issues are very much connected.
Looking at thew question - "Does JBGS’s lack of public liability insurance make any material difference...". The answer is yes it will IF a claim is brought against JBGS AND they are found liable. If they were insured then the insurance will pay (subject to excess etc) and if they aren't then JBGS will have to pay. So I believe that the issue of liability is pertinent and inseparable from the actual question asked.
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