Subcontractors · Mandatory · Pre-Construction

Public Liability Insurance Verification

A verification record confirming that a subcontractor holds adequate public liability insurance, typically a minimum of £5m cover.

Last reviewed: 29 March 2026 — This guide reflects UK law as of this date. CDM 2015 / Contract Law remains current with no amendments enacted as of 29 March 2026. Next scheduled review: 29 March 2027.

Legal basis	CDM 2015 / Contract Law (not a statutory requirement but contractually mandatory)
What PL covers	Third-party bodily injury or property damage caused by the subcontractor's operations.
What PL does NOT cover	Damage to own work (CAR insurance); professional negligence (PI); employer's liability for worker injury (EL); deliberate/criminal acts.
Cover levels	Typical minimum £5m per occurrence. Higher-value projects £10m or more. Specialist operations £10m-£25m.
Verifying the cert	Check policy period, cover level, legal name matches exactly, exclusions, insurer authorised by FCA.

1. Public Liability — Third-Party Risk Protection

Public liability insurance protects third parties from the consequences of the subcontractor's negligence. Without verified PL insurance, the PC may find itself on the hook for claims that should have been the subcontractor's.

PL insurance is not a statutory requirement in the UK — unlike employers' liability insurance. However, it is contractually mandatory on virtually every construction project. The PC should treat the absence of a valid PL certificate as a mobilisation blocker in the same way as the absence of an EL certificate. Third-party claims arising from construction work can be substantial — damage to adjacent properties, injury to members of the public, damage to existing infrastructure — and without PL cover, the subcontractor and potentially the PC bear those costs directly.

Verification must go beyond confirming that a certificate exists. The PC must check the policy period, the cover level, the insured name, and any exclusions that may be relevant to the work scope. A PL certificate that excludes the exact type of work being carried out provides no protection at all.

Check that the insured name on the certificate exactly matches the subcontractor's legal name

A certificate in a different name — even a trading name variant — may not provide valid cover for the contracting entity.

2. PL Verification Checklist

The following table sets out the fields that a well-structured PL verification checklist should include.

Field	What to record
Subcontractor legal name	Matches certificate exactly? Y/N
Insurer	Name and FCA authorisation confirmed? Y/N
Policy number	Recorded for reference.
Period of cover	Start date and expiry date. Covers project period? Y/N
Cover level	£[amount] per occurrence. Meets contract minimum? Y/N
Relevant exclusions	Any exclusions applicable to this scope? Y/N
Retroactive date	(if applicable) — for claims-made policies.
Certificate filed	Original or certified copy retained? Y/N
Renewal reminder set	For date 2 months before expiry. Y/N
Verified by	Name, role, date of verification.

The checklist should be completed for each subcontractor before mobilisation. The completed checklist — together with a copy of the certificate — should be filed in the project records and cross-referenced with the insurance certificate log.

3. Common Mistakes

Accepting PL certificates where the cover level falls below the contract minimum

The contract specifies a minimum PL cover level for a reason. Accepting a certificate with lower cover leaves the PC exposed to uninsured losses above the actual cover amount.

Not checking that the policy period covers the entire project

A PL certificate that expires before project completion creates a gap in cover. The policy period must extend to cover the full duration of the subcontractor's works on site. Where a renewal falls mid-project, the log must flag this and request the updated certificate before the existing one expires.

Not checking for exclusions that apply to the work scope

PL policies commonly exclude specific high-risk activities. If the subcontractor's work falls within an exclusion, the cover is effectively worthless for that scope.

Accepting a photocopy of an old certificate

A photocopy of a previous year's certificate does not confirm current cover. The actual current certificate — or a certified copy — must be obtained and retained.

Assuming a certificate from last year's project is still valid

PL policies renew annually. A certificate from a previous project may have expired or been amended. A fresh certificate must be obtained for each new appointment.

4. Frequently Asked Questions

What is the difference between PL and Contractors All Risks insurance?▾

PL covers third-party claims for bodily injury or property damage. CAR/Contract Works insurance covers the contractor’s own work — damage to works in progress. They serve different purposes and are not interchangeable.

Who is required to hold PL insurance on a construction site?▾

Each subcontractor is typically required by their contract to hold their own PL insurance. The PC’s PL policy does not automatically cover subcontractors’ operations. Each subcontractor should provide their own certificate as part of the pre-mobilisation process.

What does ‘per occurrence’ mean on a PL certificate?▾

The maximum the insurer will pay out for any single incident. There may also be an aggregate limit.

What is a combined single limit (CSL)?▾

A single maximum coverage amount that applies to both bodily injury and property damage claims combined.

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