Product liability Manufacturers and suppliers of construction materials should take out product liability insurance that covers personal injury or damage to third party property which their product causes. Product liability does not insure the cost of repairing or replacing the defective product itself (product guarantee insurance) nor the cost of recalling a defective product from the market (product recall insurance). Single project insurance Public liability, CAR and professional indemnity can all be purchased on a project specific basis. In the UK it tends to be seen only on larger projects where it is an employer reimbursable expense and where the available limits of indemnity under annual covers are not sufficient. The cover will be very similar to annual policies but will apply only to the project in question and last for the duration of the project rather than annually. Where single project cover is in place, the project will usually be excluded from the annual policies to avoid duplication.
Owner controlled insurance programmes The employer/developer may purchase a single and controllable policy/wrapper to cover CAR and PL risks which would otherwise be insured by a multiplicity of contractors and subcontractors.
Jonathan Brown Partner, London T: +44 (0)20 7876 6356 E: jonathan.brown@clydeco.com Richard Moody Partner, London T: +44 (0)20 7876 6020 E: richard.moody@clydeco.com
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