We generally ask for details of Public Liability and Employer's Liability. Without the Public Liability Insurance you're on a sticky wicket in the event a contractor causes problems, e.g. an accident

Check also the amount of maximum cover available and match that up to the potential for damage. Simple ground works may not need as high an indemnity amount as someone who is doing major demolition/construction works. If they're working at height above your production machinery, what damage will the dropped spanner in the works do? For anyone offering professional advice then Professional Indemnity cover should be verified.

It is very common in fact. All contractors using naked flame or hot processes (bitumen tar boilers, welders, brazing etc) will have a Burning and Welding condition on the public liability section of their policy. In the event of a loss relating to use of heat, the insurers will first check to ensure the condition has been complied with. The conditions will normally stipulate:- - FEA or charged water hose available. - Work area is cleared of combustible materials for radius of 10m, including the other side of walls where sparks may be carried via penetrating services. Non combustible welding drapes used to protect combustible items that cannot be removed. - A fire watch is maintained during the work and for one hour afterwards. A good hot work permit system will ensure a contractor abides by their policy conditions and also allows the building controller to agree the scope of the work and who will maintain the fire watch. Other clauses that contractors policies can carry include:- - Height limit. - Depth limit. - Exclusion of demolition unless small ancillary structures. - Exclusion of demolition via single drop, explosive or ball and chain (rare) methods. - BFSC clause. This states that a contractor has to ensure all their BFSC's hold PL cover. Some will even stipulate the security rating (Standard + Poor / Moodys) rating that the insurer must meet or exceed. Most insurers with one notable exception in Ireland will meet this stipulation.

Re Stevie40's comment on my post - Just to clarify since I obviously did not make it clear. The existence of hot work conditions is standard what happens less frequently is an insurer deciding to void a policy. Despite much media comment to the contrary attempting to avoid paying a claim is something that insurers approach very carefully, after much thought and relatively rarely. Phil