Just Intrigued - Does Public Liability Insurance Cover Consequential Loss

[Jazz1966]

I saw a video on YouTube where one side of a house collapsed because the builder had not installed enough support before knocking out a load-bearing wall.

I was just wondering, if the builder had Public Liability Insurance, would the insurance pay out for the damage this caused?

 

[Murdochcat]

I would say yes BUT it all depends on what professions he has asked for cover for from the insurance company and whether such structural work is included

Just saying you have PL insurance won't be enough

 

[aveatry]

I think public liability is for injury. There is another one that is called professional liability

 

[MNW67]

What do you mean by "consequential loss".

 

[Notch7]

I saw a video on YouTube where one side of a house collapsed because the builder had not installed enough support before knocking out a load-bearing wall.

I was just wondering, if the builder had Public Liability Insurance, would the insurance pay out for the damage this caused?

is that the where the window falls out but doesnt break -it is rather funny (not for the home owner)

 

[Notch7]

I was just wondering, if the builder had Public Liability Insurance, would the insurance pay out for the damage this caused?

yes it would indeed

for example I made and fitted some windows for a customer, about 7 years later the customer had a decorator repaint the outside, problem was that they used a lad to sand back the paintwork and he scratched the windows. The decorators insurer paid the cost of replacing all the sashes at a cost of £13,000 (they could just have glass as they had dummy georgian glazing bar)

 

[MNW67]

This is a bit disappointing. I thought we were going to have a discussion about the difference between direct loss, consequential loss and pure economic loss.

 

[motorbiking]

I saw a video on YouTube where one side of a house collapsed because the builder had not installed enough support before knocking out a load-bearing wall.

I was just wondering, if the builder had Public Liability Insurance, would the insurance pay out for the damage this caused?

Public liability would be unlikely to cover it. As has been said professional indemnity would be appropriate. However, the building owners insurance would cover it, subject to exclusions and excesses for the works being performed.

The building insurer would then sue the builder for their negligence. The architect and structural engineer might also have liability.