help with bringing my own professional negligence claim against my builder

[redpen]

Hi All,

new member here, but have been a long time lurker!

Can anyone assist with the following?

I hired a builder to extend the side of my house in 2016. Unfortunately the job was too complex for him. The work completed was of a poor standard, over budget and parts of it were left unfinished.

My legal exp insurer wont pay out because my contract was over £10k, so I am no having to go it alone to recoup my money. The builder has provided me with his insurance details (he has since gone bust). I now wish to claim for breach of contract etc, under the builder's third party liability insurance. I would be allowed to do this under the third parties rights against the insurers act.

Can anyone offer me help out on how I would go about bringing a claim of breach of contract against the builder, via his insurance policy?

Many thanks.

[des8]

hi and welcome

Sorry to hear of your problems but I'm afraid the Third Parties rights against Insurers Act. isn't going to be any help to you if you are intent on taking action against his public liability insurers.
That policy covers the builder for damages to third party property and your building would not be classed as that.
You need to ascertain if your builder had a professional indemnity policy which would cover against his mistakes and omissions

you say he has gone bust:
Was he a sole trader who has been declared bankrupt, or was it a limited company that has gone into liquidation?

[redpen]

hi and welcome

Sorry to hear of your problems but I'm afraid the Third Parties rights against Insurers Act. isn't going to be any help to you if you are intent on taking action against his public liability insurers.
That policy covers the builder for damages to third party property and your building would not be classed as that.
You need to ascertain if your builder had a professional indemnity policy which would cover against his mistakes and omissions

you say he has gone bust:
Was he a sole trader who has been declared bankrupt, or was it a limited company that has gone into liquidation?

He was limited company. According to the insurance policy, under the liability section (which he has a £5m level of cover- more than sufficient for my claim):

DC2.2 Claims Made Against You

We will pay on Your behalf all sums for which You shall become legally liable to pay in respect of any Circumstance or claim made against You for:

(a) any breach of professional duty arising from the performance of any design or specification supervision of construction or installation feasibility study technical information calculation or survey performed by You or performed on Your behalf by any contractor or subcontractor for whose acts errors or omissions You are legally liable

So under this section, the builder has breached our contract by not finishing the work. Therefore according to the above clause, he is covered by any legal action I take and compensation that the courts award me. Or am I reading this all wrong? I have attached the policy document for anyone who may be kind enough to read through the policy!

Many thanks again.

[des8]

I'm afraid you have misread the policy.
The policy wording is a complete package from which the insured chooses those sections he wants to purchase.
The purchased sections are shown in the schedule, where it can be seen the builder did not elect to purchase Professional Indemnity.
It is showing "Not Insured"
The section (DC2,2) to which you refer is the Professional Indemnity (Design & Construction) section of the policy.

You say that it was a limited company that has gone "bust"
Have you confirmed by reference to Companies House if the company is subject to insolvency proceedings?
You might possibly be listed as an unsecured creditor

[redpen]

Sorry my mistake. I have misread the policy! What I should have asked about was this clause:

LI3.0 Public and Products Liability
This cover is underwritten on a losses-occurring basis This means that We will only handle and settle claims that first occur during the Period of
Insurance and are notified in accordance with the Claims Conditions in Part 6 of this Certificate
LI3.1 The Cover
We will pay You
(a) up to the Limit of Indemnity for Your legal liability to pay Compensation and
(b) for Your legal liability to pay Costs and Expenses
in respect of accidental
(i) Personal Injury
(ii) Damage to Property
(iii) obstruction trespass nuisance or interference with any right of way air light or water
which arises in connection with the Business and which happens within the Territorial Limits

Costs and expenses are defined as


LI1.4 Costs and Expenses
(a) Fees for Your legal representation at
(i) any Coroner's Inquest or Fatal Accident Inquiry
(ii) proceedings in any Court of Summary Jurisdiction arising out of any alleged breach of statutory duty

So if there has been a breach of statutory duty such as the supply of goods and services act, would I be able to go after the insurer for this?

Lastly I have checked about insolvency proceedings but it is a no go

[des8]

You have no claim under the Public Liability section which insures him against claims arising from damage to other peoples property.
His liability to you was contractual
The products liability section covers him against claims arising from defects in products used in construction projects

By all means check with the insurance company (or even a short reduced /nil fee solicitor consultation), but I'm afraid I cannot see where you have a claim against his insurance company because he elected not to carry full cover