Offshore Contractor Insurance: Liability Insurance

What does this type of insurance actually cover you for and why are you required to hold it?

When contracted on an offshore installation, whether oil and gas or wind, you will almost certainly be required to hold offshore contractor insurance, namely Public Liability Insurance - and maybe Employers Liability Insurance - but what does this type of insurance actually cover you for and why are you required to hold it?

Unless you employ staff for your company, neither of these policies are legally required, however both are generally stipulated in contracts, which means you could be in breach of your contract if you do not hold the appropriate cover.

Public Liability Insurance covers the defence costs and liability found owing if somebody were to sue you for causing injury or death of a third-party person, or for damage to third-party property, in the provision of your services. On an offshore installation, the risks can be high whether your role is manual or otherwise, which is why all contractors on offshore installations tend to be required to hold a suitable policy with a high level of indemnity (amount that the policy will cover).

Employers Liability Insurance will covers the defence cost and liability found owing if one of your employees suffered injury or death in the course of their duties for your company and alleges that the company is responsible. If you are the sole director of your limited company with no employees, and hold at least 50% of the shares, you won’t be legally required to hold this, but once again, if it is stipulated in your contract, you may be in breach of your contract by not doing so. If you don’t believe you need this policy in place, you may wish to speak to your agency/hiring manager but for a small outlay, it is often not worth burning any bridges over.

Qdos Contractor have been providing competitive premiums to contractors in the offshore energy sector for a number of years, covering over 30,000 energy sector contractors in the UK. £5m Public Liability policies start from as little as £121.50 per year, inclusive of all relevant taxes. If you are a UK contractor servicing the energy sector, purchase your business insurance policies today online or over the phone with one of our UK-based customer service agents on 0116 2690999.

Qdos Contractor
Tel: 0116 2690999
Details: Qdos Contractor Info