Common Claims Made Against Contractors (With Examples)

Introduction

Contracting work is hands-on, deadline-driven, and often carried out in busy environments where other trades, clients, and members of the public are nearby. Even when you do everything right, things can still go wrong—materials fail, instructions change, weather turns, or someone else’s actions create a chain reaction.

For UK contractors, the cost of a claim can be more than the repair bill. You may face legal fees, project delays, reputational damage, and (in some cases) regulatory scrutiny. The good news is that most common contractor claims follow familiar patterns—meaning you can reduce risk with the right processes and the right cover.

Below are the most common claims made against contractors, with practical examples and the insurance policies that typically respond.

1) Third-party injury claims (Public Liability)

What it is: A member of the public, a client, or another non-employee is injured due to your work activities.

Why it happens: Trip hazards, falling objects, unsafe access routes, poor housekeeping, inadequate signage, or work carried out in occupied premises.

Example scenario: A flooring contractor is fitting new vinyl in a reception area. The adhesive is drying and the area is cordoned off, but the barrier is moved by someone else. A visitor walks across the surface, slips, and fractures their wrist. They claim for pain and suffering, loss of earnings, and travel costs for medical appointments.

What the claim may include:

• Compensation for injury

• Legal defence costs

• Loss of earnings and care costs

• Potential settlement costs even if liability is disputed

Risk reduction tips:

• Use clear signage and physical barriers (not just tape)

• Maintain tidy walkways and remove trailing cables

• Keep a site diary and take photos of barriers/signage

2) Third-party property damage claims (Public Liability)

What it is: Damage to a client’s property or a third party’s property caused by your work.

Why it happens: Accidental impact, water leaks, incorrect drilling, fire, or damage caused by subcontractors.

Example scenario: A plumbing contractor installs a new pipe run in a commercial unit. A compression fitting isn’t fully seated. Overnight, the pipe leaks and floods the unit below, damaging stock and electrical systems. The tenant claims for repairs, stock loss, and business interruption.

What the claim may include:

• Repair/reinstatement costs

• Replacement of damaged contents/stock

• Associated costs (drying, dehumidifiers, electrical testing)

• Legal costs

Risk reduction tips:

• Pressure-test and document tests before leaving site

• Use checklists for critical connections

• Confirm isolation points and emergency contacts

3) Defective workmanship and “making good” disputes

What it is: The client alleges the work is defective and demands it is corrected. This is one of the most common areas of dispute in contracting.

Important note: Many liability policies do not cover the cost of redoing your own faulty work (“making good”), but they may cover resulting damage to other property.

Example scenario: A contractor installs a flat roof membrane. Months later, water ingress occurs. The client alleges poor installation and demands a full replacement. The contractor argues the issue is due to blocked drainage and lack of maintenance.

What the claim may include:

• Cost to remove and replace work

• Expert reports (surveyors, engineers)

• Legal costs and contract dispute costs

• Consequential damage (e.g., damaged ceilings, electrics)

Risk reduction tips:

• Provide written scope, specifications, and exclusions

• Keep evidence of materials used and manufacturer guidance

• Photograph key stages and sign-offs

4) Negligent advice, design errors, or specification issues (Professional Indemnity)

What it is: A claim that your advice, design input, or specification caused financial loss or a defect.

Why it happens: Contractors often “value engineer,” recommend alternatives, or provide drawings for small works—even when the client sees it as informal.

Example scenario: A design-and-build contractor recommends a cheaper cladding system to meet budget. Later, the client discovers it does not meet the required fire performance for the building type. The client claims for replacement costs and project delay losses.

What the claim may include:

• Rectification costs linked to design/spec errors

• Professional fees to investigate and redesign

• Legal defence costs

• Delay and loss of rent/income (depending on contract)

Risk reduction tips:

• Clarify what you are and aren’t responsible for (design vs install)

• Use written change control for substitutions

• Maintain PI cover if you provide advice, drawings, or design

5) Injury to employees or labour-only staff (Employers’ Liability)

What it is: An employee (or someone deemed an employee) is injured and claims against you.

Why it happens: Manual handling injuries, falls from height, tool accidents, inadequate PPE, or insufficient training/supervision.

Example scenario: A labourer working under your supervision falls from a hop-up platform while installing ductwork. They allege inadequate training and unsafe working practices. Even if you dispute liability, you still need legal defence.

What the claim may include:

• Compensation for injury

• Legal costs

• Ongoing care and rehabilitation costs

Risk reduction tips:

• Confirm employment status and obligations

• Provide task-specific RAMS (risk assessments and method statements)

• Record inductions, toolbox talks, and PPE issuance

6) Damage to the works in progress (Contract Works / Contractors’ All Risks)

What it is: Loss or damage to the work while it’s being carried out, before handover.

Why it happens: Fire, flood, storm damage, vandalism, theft of installed materials, or accidental damage by other trades.

Example scenario: A contractor is refurbishing a retail unit. Overnight, vandals break in and damage newly installed stud walls and wiring. The client expects the contractor to reinstate quickly to avoid opening delays.

What the claim may include:

• Cost of reinstating the works

• Debris removal

• Additional labour and materials

Risk reduction tips:

• Secure sites, especially during fit-out stages

• Store high-value materials securely and consider tracking

• Clarify contract responsibilities for security and insurance

7) Theft or damage to tools, plant, and hired-in equipment (Plant & Tools)

What it is: Loss of tools and equipment from site, vehicle, or storage.

Why it happens: Opportunistic theft, insecure vans, poor site security, or theft of hired-in plant.

Example scenario: A contractor’s van is broken into overnight and power tools are stolen. The contractor can’t work for two days, misses a milestone, and faces liquidated damages under the contract.

What the claim may include:

• Replacement cost of tools

• Hire costs for temporary replacements

• Potential knock-on costs (depending on cover)

Risk reduction tips:

• Use tool marking and keep an asset register

• Upgrade locks, alarms, and tracking

• Avoid leaving tools in vehicles overnight

8) Subcontractor-related claims (vicarious liability and contract risk)

What it is: A claim arises from a subcontractor’s actions, but you are pursued as the principal contractor.

Why it happens: Clients often contract with you, not the subcontractor. If the subcontractor is uninsured or disputes liability, the claim can land on you.

Example scenario: You subcontract electrical works. The subcontractor damages a client’s server cabinet while routing cables. The client claims against you for replacement hardware and data recovery costs.

What the claim may include:

• Property damage and associated costs

• Legal costs

• Potential uninsured losses if subcontractor cover is inadequate

Risk reduction tips:

• Verify subcontractor insurance (PL/EL/PI as relevant)

• Use written subcontract agreements with indemnities

• Keep copies of certificates and renewal dates

9) Contractual disputes, delays, and liquidated damages

What it is: The client alleges you caused delays, missed milestones, or failed to meet contractual obligations.

Important note: Standard liability policies often won’t cover pure contractual penalties (like liquidated damages), but disputes can still trigger legal costs and related claims.

Example scenario: A shopfit contractor is delayed due to late material deliveries. The client claims the contractor failed to plan properly and seeks liquidated damages for each day the store opening is delayed.

What the claim may include:

• Contractual penalties (often uninsured)

• Legal costs to defend or negotiate

• Claims for additional project management costs

Risk reduction tips:

• Build realistic programmes and document dependencies

• Keep written evidence of delays outside your control

• Use change orders and extension-of-time requests promptly

10) Damage caused by heat work (Hot Works) and fire claims

What it is: Fire or smoke damage arising from welding, cutting, grinding, roofing torches, or similar hot works.

Why it happens: Inadequate permits, poor fire watch, combustible materials nearby, or failure to isolate.

Example scenario: A roofing contractor uses a torch-on felt system. A small ember enters a void and smoulders. Hours later, a fire breaks out, damaging the building and neighbouring units. Multiple parties bring claims.

What the claim may include:

• Major property damage reinstatement

• Business interruption claims from neighbours

• Legal costs and investigation costs

Risk reduction tips:

• Follow hot works permit procedures

• Maintain fire watches and record them

• Keep extinguishers on hand and remove combustibles

11) Pollution and environmental damage claims

What it is: A claim for contamination or pollution caused by your activities.

Why it happens: Fuel spills, chemical leaks, improper waste handling, or accidental discharge into drains.

Example scenario: A groundworks contractor ruptures an underground oil line during excavation. Oil enters the drainage system and contaminates nearby land. The landowner and local authority pursue clean-up costs.

What the claim may include:

• Clean-up and remediation costs

• Third-party property damage

• Legal costs

Risk reduction tips:

• Use utility searches and safe digging practices

• Train staff on spill response

• Keep spill kits on site and in vehicles

12) Product liability claims (materials supplied or installed)

What it is: A claim that a product you supplied or installed caused injury or damage.

Why it happens: Faulty components, incorrect installation, unsuitable materials, or unclear responsibility between supplier and installer.

Example scenario: A contractor supplies and installs a handrail system. A fixing fails and a visitor falls. The client alleges the handrail was not fit for purpose and claims for injury and associated costs.

What the claim may include:

• Injury compensation

• Replacement/repair costs

• Legal costs

Risk reduction tips:

• Use reputable suppliers and keep batch/serial records

• Follow manufacturer installation guidance

• Document inspections and handover

What insurance typically helps contractors?

Every contractor is different, but the most common covers that respond to the claim types above include:

• Public Liability Insurance (injury/property damage to third parties)

• Employers’ Liability Insurance (injury/illness claims from employees)

• Professional Indemnity Insurance (advice/design/specification errors)

• Contract Works / Contractors’ All Risks (damage to the works in progress)

• Tools and Plant Insurance (owned and hired-in equipment)

• Product Liability (often included with PL, but check)

• Legal Expenses (contract disputes and legal support, where available)

Quick checklist: how to reduce claims frequency

• Use written scopes, change control, and sign-offs

• Keep a site diary and photo evidence

• Maintain RAMS, inductions, and toolbox talks

• Vet subcontractors and keep insurance on file

• Improve site security and tool control

• Document testing/commissioning and handover packs

FAQs

What is the most common claim against contractors?

Public Liability claims for accidental property damage and third-party injury are among the most common, especially in occupied premises and multi-trade sites.

Does Public Liability cover poor workmanship?

Usually not for the cost of redoing your own work. It may cover resulting damage to other property caused by the defective work, depending on policy terms.

When do contractors need Professional Indemnity?

If you give advice, provide drawings, design elements, specify materials, or make substitutions that affect performance/compliance, PI is strongly recommended.

Are subcontractors covered under my insurance?

Sometimes, but it depends on your policy wording and how subcontractors are engaged. Always verify subcontractor insurance and keep certificates on file.

What evidence helps defend a contractor claim?

Site diaries, photos, signed scope documents, change orders, test certificates, RAMS, and written communications showing instructions and approvals.

Conclusion

Claims against contractors are common, but they’re also predictable. Most fall into a handful of categories: injury, property damage, workmanship disputes, design/advice errors, employee injuries, theft, and delays.

The strongest defence is a combination of good documentation, consistent site controls, and insurance that matches the real risks of your trade. If you want to sanity-check your current cover, it’s worth reviewing your contracts, the type of work you do, and whether you’re taking on any design responsibility—because that’s where many costly surprises begin.