Are Overseas Clients Covered By UK Builders' Public Liability Insurance?
When taking on projects for clients based abroad, clarifying the scope of your UK public liability insurance is essential. Overseas work can expose builders to greater risks, so confirming adequate protection is in place if issues later arise should be a priority. This article explains how standard UK public liability policies apply when serving foreign customers, any limitations in place, and extra provisions worth considering when contracting work across borders. What Does Public Liability Insurance Cover? Firstly, let's recap what risks standard public liability insurance is designed to cover. These policies protect insured tradespeople from costs associated with:
- Damages caused by them or their employees to 3rd party property during works. Builders Insurance includes accidental damage to clients' possessions.
- Injury claims from 3rd parties, for example, a decorator spilling paint that injures a passer-by through negligence.
- In some cases, financial losses incurred by 3rd parties arising from the policyholder's works. For example, disruption preventing a shop below a builder's project from trading.
Territorial Limits On Standard Cover Most UK public liability policies sold by brokers automatically include cover for works undertaken anywhere inside the United Kingdom plus the Channel Islands and Isle of Man. This means that standard policies inherently cover projects for clients based overseas provided the work itself is delivered within these territories. So if a Spanish client contracts a London builder to refurbish their British holiday home, this would fall within typical public liability boundaries without needing enhanced provisions. Cover Limitations For Overseas Work Problems can arise when UK traders plan to work directly on projects abroad with overseas customers. In these instances, standard UK public liability insurance policies provide little or no protection overseas. A policy taken out in Britain is extremely unlikely to cover liabilities arising from work undertaken in foreign countries. Limited exceptions occasionally exist in some policies for temporary small-scale work inside European Union nations, for example short repair jobs in France. However specific territorial exclusions often still apply regarding more litigious locations like the USA and Canada. But typically, standard UK public liability policies exclude overseas work from coverage. Always carefully check documents or contact your broker to clarify positions beforehand when planning foreign projects. Specialist Overseas Contingency Cover If undertaking building work abroad, special public liability provisions will almost certainly be required to maintain adequate protection. Seek specialist overseas contingency cover within your policy. Reputable brokers catering to contractors who routinely work internationally can arrange suitable bespoke liability cover protecting foreign projects. This may be deliverable through adding overseas extensions onto existing standard UK public liability policies. When arranging adequate overseas public liability cover, be sure to clarify which specific countries protection extends to within written documents. Some insurers may automatically exclude higher-risk regions like the Middle East and Asia. Check exclusions smallprint thoroughly and negotiate inclusion if needed. Also confirm policy response procedures for incidents occurring abroad, and whether legal and language translation assistance services are accessible under provisions to smoothly handle foreign claims. Stay Protected – Wherever Work Takes You UK builders completing projects overseas face amplified risks from working environments less familiar than home. This means verifying appropriate public liability insurance plans are in place first is all the more critical before taking on foreign contracts. With standard UK policies largely invalid beyond British borders, securing suitable overseas contingency cover is essential to shield your enterprise from expensive overseas legal disputes should the worst occur abroad. Protect your business and peace of mind.