Builders’ Liability

This cover provides indemnity in respect of Construction related Risks Resulting in Death of Site Workers; Death of Third Parties; Injury to Site Workers or Third Parties; damage to Site Workers’ or Third Parties’ property and even legal costs.

It is a compulsory insurance policy for contractors and owners of buildings higher than two storeys. Section 64 of the Insurance Act. 2003 requires that every owner or contractor of any building under construction with more than two floors, must take an insurance policy to cover liability against construction risks caused by the negligence of the contractor, owner, servants, agents, consultants which may result in death, bodily injury, or property damage to workers or the public. The insurance must be undertaken from the construction stage. The purpose is to guard the public against construction risks that may be caused by negligence. The insurance should also cover collapse of the building.

A person who contravenes the law in this regard commits an offence and on conviction is liable to a fine of N250,000 or 3years imprisonment or both.