It's Certain and Important. Otherwise, It Could Be Very Expensive for You
Personal liability insurance? It's definitely included in contractor work insurance or professional liability insurance, right?
Well, that's not necessarily the case!
The various construction industry insurance policies do not automatically include personal liability extension, unlike, for example, in the employer liability insurance section of the contractor work policy according to BIT 2013 terms, where this insurance is included.
And why is this so important?
Almost everyone connected to the construction project - from the management level (CEO, VP of Operations, VP of Engineering...), from the business level (developer, work client, directors, shareholders, various company officers...), and from the operational level (work manager, project manager, performing contractor, building contractor performing contractor work...) - may be exposed to personal liability claims.
Expanding personal responsibility
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Why?
Because the plaintiff decided to sue anyone possible and leaves it to the court to address the question of liability and its distribution.
The liability can be interpreted in two ways: tortious and criminal.
If you still don't have appropriate extensions in all the policies providing liability insurance for all officers in the organization! An expression that requires explanation:
This paragraph highlights the importance of expanding personal liability insurance primarily for officers in the organization, construction company, developers' partnership, officers such as directors and company officers, and more.
Why? During the last two years, changes have occurred in safety regulations that have aggravated the degree of personal liability of management position holders, namely: developers, managers, directors, shareholders, construction company owners, CEOs, contractors, and the like. This aggravation stems from the legislator's view of the need and importance in organizing safety management - in order to enable and provide those executing in the field with the tools to comply with safety regulations. This is the responsibility of the management level to provide adequate conditions and tools - and if these were not provided according to the requirements of the law and regulations - there is room for a lawsuit or indictment regarding personal liability.
A point for thought.
Particularly Important Data This data has already appeared several times on the website pages, which testifies to its specific weight when it comes to insurance policies in the construction industry in general and personal liability insurance in particular.
The characteristic in the construction industry that makes headlines every day is the number of casualties: about 6,000 construction workers are physically injured every year, of which close to 50 are killed, and how many accidents caused 'only' property damage?
As those who handle tort claims due to construction work on a regular basis, we can say with certainty that the number is much larger than the number of accidents with casualties.
And now, with the legislator's more stringent approach regarding personal liability - it's clear why I'm calling on you to contact me and examine existing policies and/or add insurance extensions regarding your personal liability.
We recommend that you call us to build a set of insurance extensions for your insurance policies that includes personal liability insurance coverage for all levels of the organization's staff - both managerial, business and executive.
This insurance extension gives you coverage for legal defense expenses in the event of criminal liability and extended coverage for financial damages in the event of personal tort liability, according to the terms of the policy.
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