Does Public Liability Insurance Cover Sub-contractor?

A self-employed individual engaged in risk-associated projects must buy public liability insurance. The professions and businesses that are highly prone to risk may hold an insured liable for certain acts while discharging his duties. General liability insurance is purchased to settle the claim of a third party. However, it is essential to learn if public liability insurance covers subcontractors.

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Public Liability Insurance

Public Liability Insurance (PLI) covers subcontractor. An individual discharging his duty as a subcontractor for a third party may make errors or omissions. He might be held liable by the contractor for his acts in the course of his employment. He is vulnerable to several kinds of damages and losses. Hence, a subcontractor may avail of public liability insurance. 

Requirement of PLI

A subcontractor is generally held responsible for the loss or damage caused to a third party during the business activity. He would be obligated to pay appropriate compensation to the third party. In addition, public liability insurance is imperative at construction sites. These sites are prone to risk when the workers discharge their duty in a hazardous environment. Therefore, if something went wrong, the subcontractor would have to pay compensation for the injury suffered by the workers at the construction site.

Cost of PLI

It is important to note for an individual that public liability insurance cover subcontractor. Therefore, a company or firm that hires a subcontractor shall not be liable to cover the losses or claims made by the third party. It is crucial for a subcontractor to buy general liability insurance. 

Additionally, the companies hiring subcontractor verify if he has purchased comprehensive liability insurance. In order to win a quotation, an individual must possess public liability policy. However, when a third party suffers from a property loss or other losses due to the act of the principal contractor as well as the sub-contractor, the loss shall be divided between both parties.

Claim for PLI

A subcontractor must learn about the process of claiming public liability insurance. No standard procedure is defined to claim the liability policy. It generally varies from insurer to insurer. However, the policyholder must possess the relevant documents required at the time of claiming PLI. The insurance investigator shall ask several questions in order to ensure the validity of the claim made by the insured. 

The insured must apprise the insurer immediately after the claim arises. He must complete the necessary formalities in the first place. 

Upon informing the insurers, the insurance company shall appoint a surveyor in order to investigate the claim and evaluate the loss required to be paid by the insurer. Upon verification, the insurer shall settle the claim if found valid. This is how public liability insurance cover subcontractor.

Case of PLI

  • ABC contractor won a quotation for building a hospital in Delhi. The project was extensive which mandated them to hire a subcontractor in order to build the hospital within the stipulated time. The hired individual possesses public liability insurance that covers the subcontractor. 
  • The construction work started in a full swing. While lifting some concrete, a worker lost his balance which resulted in the falling down of concrete on a senior citizen passing through the construction site. 
  • The senior citizen or victim was admitted to the hospital which cost him INR 5,00,000 in order to save his life. The victim instituted the suit for negligence in the Saket district court having jurisdiction to deal with the matter. The court held the subcontractor vicariously liable for the actions of his worker and mandated him to pay the appropriate compensation to the victim. 
  • The subcontractor approaches the insurance company and settles the claim.


A subcontractor may also be held legally responsible for the negligence caused to a third party. Hence, it is important for the sub-contractor to purchase public liability insurance that covers subcontractors.

Written By: PolicyBazaar - Updated: 16 August 2023
Policybazaar for Business - Comprehensive Liability Insurance - Customer Reviews
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4.3 April 09, 2023
Competitive Premiums
The premiums offered by PolicyBazaar for the Comprehensive General Liability Insurance are competitive, considering the extensive coverage and top-notch customer service they provide.Truly recomend it.
4.3 March 28, 2023
Worth Buying
PolicyBazaar worked closely with me to tailor the coverage to meet the specific needs of my business.Worth buying.
3.8 March 16, 2023
Wide Coverage
One of the most significant aspects of this insurance is its coverage. It provides extensive protection against a wide range of liabilities, including bodily injury, property damage, etc. Thanks for the policy PB
3.8 March 04, 2023
Peace Of Mind
I have been a satisfied customer of PolicyBazaar for several years now. It offers a comprehensive and reliable safety that has given me peace of mind and allowed me to focus on growing my business without constant worry about unforeseen events.Thankyou PB.
3.8 February 20, 2023
Claim Process Is Hassle Free
PolicyBazaar's claims process is efficient and hassle-free. In the unfortunate event of a claim, they handled everything swiftly and professionally, ensuring a smooth resolution without unnecessary delays. This reliability and promptness have further strengthened my trust in their services.Thankyou.
4 February 20, 2023
Great Customer Support
PolicyBazaar can help you get your Insurance as I am in the construction Industry and needed some guidance on risk concerns. I contacted PolicyBazaar Team, whO explaned to me the process to get the Insurance. Thank you PolicyBazaar.
3.8 February 16, 2023
Damages Covered
I recently purchased CGL insurnace from PolicyBazaar. They helped me to cover my damages. Thankyou.
4 February 12, 2023
Helpful Team
We were looking to buy Comprehensive General Liability Insurance Plan that protects Third party property from any accidental damage at my workplace. So we landed on the PolicyBazaar website. It was well managed and described all the benfits in detaill... We contacted their Customer support and dcided to buy from them. Thanks, PolicyBazaar Team
3.8 February 08, 2023
All In One Platform
It is an All in one platform which provided me unique perks, Low premium prices and a fast claim settlement process. Thankyou PB. Excellent platform.
4.3 February 04, 2023
Good Package
Got a really good coverage. Thanks, PolicyBazaar