In certain construction trades, the cost of correcting defective work can be extremely expensive. For example, a concrete flooring company who has poured defective concrete would be faced with a huge bill if the concrete had set and needed to be dug out and replaced. The costs could be even higher if the concrete had been built upon and building work had be demolished.

Public Liability insurance is designed to cover the legal liability arising from injury or property damage that you cause due to your negligence but it does not cover the costs of putting right defective work where no damage has occurred.

In certain trades (e.g. concreting contractors) insurers will even clarify their position by applying a “Rip and Tear” exclusion which will expressly exclude any liability that arises directly or indirectly from digging out or replacing concrete supplied by the insured.

It is sometimes possible to get insurers to agree to include “Rip and Tear” cover but as the costs associated with such claims are very expensive, the cover is also expensive to arrange.

Construction Risks UK has been arranging insurance cover for companies in the construction sector for many years and can advise on appropriate cover for your business.