Public Liability vs Professional Indemnity vs Contractors All Risk
What’s the Difference?

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A clear guide to the three main types of construction insurance - what they cover, when you need them, and how they protect your business.

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We compare quotes from leading UK construction insurers

THREE CORE COVERS - BUT VERY DIFFERENT PURPOSES

  • PUBLIC LIABILITY (PL)

  • PROFESSIONAL INDEMNITY (PI)

  • CONTRACTORS ALL RISK (CAR)

  • RISK MANAGEMENT

What’s the Difference Between PL, PI and CAR Insurance?

Public Liability, Professional Indemnity and Contractors All Risk insurance each protect construction businesses in different ways. Knowing which one you need - and when - is essential for compliance, contract requirements and financial protection.

This guide explains the differences in simple terms, helping contractors, trades, developers and consultants choose the right combination of cover.

Public Liability Insurance - What Does It Cover?

Protection if your work causes injury or property damage to others.

  • Injury to members of the public
  • Accidental damage to a client’s property
  • Damage caused by subcontractors (depending on policy)
  • Trip, slip or fall claims on-site
  • Use of heat tools, working at height & general hazards
  • Legal defence & compensation costs
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Professional Indemnity Insurance - What Does It Cover?

  • Incorrect design, plans or specifications
  • Professional advice or consultancy errors
  • Negligence causing financial loss
  • Surveying, engineering or architectural mistakes
  • Legal defence costs & settlements
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Contractors All Risk (CAR) - What Does It Cover?

  • Damage to works-in-progress
  • Damage to materials on-site
  • Damage to temporary buildings, fencing & site huts
  • Owned & hired-in plant, tools & machinery
  • Theft, fire, flood, storm & accidental damage
  • Continuing hire charges (for hired-in plant)
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PL vs PI vs CAR - Simple Comparison

  • PL = covers injury or property damage to others
  • PI = covers professional mistakes causing financial loss
  • CAR = covers building works, materials & plant
  • Many contractors require all three types of cover
  • Most construction contracts and main contractors require PI & CAR for higher-risk work
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“We didn’t know the difference between PI, PL and CAR - Insure24 explained it clearly and made sure we had the right cover for each project.”

Michael R., Building Contractor

FREQUENTLY ASKED QUESTIONS

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Do I need all three types of insurance?

Most contractors benefit from having PL, PI and CAR together - they protect completely different risks and complement each other.

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Is Professional Indemnity only for architects and engineers?

No - builders, trades and contractors may need PI if they provide specifications, design input, consultancy or advice.

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Does CAR include tools and plant?

Yes - CAR can include owned tools, hired-in plant, materials on-site and works in progress.

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Is Public Liability enough for most builders?

Public Liability is essential, but it will not protect you against design errors, financial loss claims or damage to your own work - this is where PI and CAR are needed.

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Do main contractors require PI or CAR from subcontractors?

Yes - many principal contractors require evidence of PI and CAR for subcontractors working on structural, design-related or high-value projects.

Related Covers

Comparison pages should route users into the right liability, PI and works pages instead of forcing one page to answer every intent. These links keep construction cover-comparison traffic on related pages.

Comparing Core Covers

Project and Contractor Risk

Planning and Structure