Quick answer
For a portfolio programme, a maintenance contractor should carry public or general liability cover at a level that matches the risk (millions, not hundreds of thousands), contract works cover to the value of the work, plus statutory liability, professional indemnity, and motor and employer cover. You should be able to see a certificate of currency, and be named as an interested party on the relevant policies. Behind the insurance, the contractor's own stability, how long it has traded and what stands behind it, is what tells you it will still be there to honour a warranty in year eight.
What a portfolio programme needs behind it.
Key points
- Public or general liability should be at a level that matches the risk of the work, measured in millions for a portfolio.
- Contract works cover protects the work in progress; statutory liability and professional indemnity cover the other exposures.
- Ask for a certificate of currency and to be named as an interested party on the relevant policies, not just a verbal assurance.
- Insurance covers the accident; the contractor's stability and backing cover whether it is still there to honour a warranty later.
- A contractor that hesitates to show cover, or to name you on it, is telling you something before the job even starts.
Insurance is the least exciting part of choosing a contractor and one of the most important, because it is the part that only matters on the worst day. On a portfolio programme, where a contractor is working across many of your buildings for a long time, the cover it carries and the strength behind it are not paperwork, they are the answer to what happens if something goes badly wrong, and to whether the contractor will still be around to stand behind its work years later. Here is what to look for and why.
The cover that matters, and the level
The headline is public or general liability, which covers damage or injury the work causes to people or property. For a portfolio programme the level has to match the risk: cover measured in millions, not hundreds of thousands, because a fire or a flood in one occupied building can run well past a small policy. Alongside it, contract works cover protects the work itself while it is in progress, and statutory liability and professional indemnity cover the other exposures. Motor and employer or ACC cover round it out. A serious contractor holds the set, not just the one policy it was asked about.
Certificate of currency, and named as interested party
Cover you cannot see is cover you cannot rely on, so ask for a certificate of currency, the insurer's confirmation that the policy is real and current, rather than a verbal assurance. Then ask to be named as an interested party on the relevant policies, which means you are recognised on the cover for the work being done on your buildings. A contractor that is properly insured produces both without fuss. One that hesitates is telling you something useful before you have signed anything.
| Cover | Protects against | What to check |
|---|---|---|
| Public / general liability | Damage or injury the work causes | The level, in millions for a portfolio |
| Contract works | Loss or damage to the work itself | Cover to the value of the work |
| Statutory liability | Certain statutory breaches | That it is held |
| Professional indemnity | Advice and design errors | That it is held |
| Certificate of currency | It all being real and current | You can actually see it |
Behind the insurance: will they be there?
Insurance handles the accident. It does not answer the other question a portfolio owner should ask: will this contractor still exist in year eight when a warranty issue comes up? That is about stability, not policies, how long it has traded, whether it has weathered downturns, and what backing stands behind it. A contractor with decades of continuous trading and a parent group behind it is a very different proposition from one that might not survive the next quiet patch. The 10-year workmanship warranty is only worth as much as the company standing behind it.
This is the same logic as choosing one accountable partner across a building or checking real capacity rather than a borrowed peak: you are not just buying this week's work, you are buying a relationship that has to hold for years. Insurance is the floor; stability is what keeps the floor there.
Frequently asked questions
What insurance should a maintenance contractor have?
At a minimum, public or general liability at a level matching the risk, contract works cover to the value of the work, and statutory liability, professional indemnity, and motor and employer or ACC cover. For a portfolio programme the liability cover should be measured in millions. A serious contractor carries the full set, not just the one policy it happens to be asked about.
How much public liability cover is enough?
Enough to cover the realistic worst case, which for work in occupied buildings means millions rather than hundreds of thousands. A fire or flood in one occupied unit can cause damage well beyond a small policy, so the cover has to match the risk of the work being done, not just tick a box. Ask for the actual sum insured, not just that cover exists.
What is a certificate of currency?
A certificate of currency is the insurer's written confirmation that a policy is real, current and covers what the contractor says it does. It is the only reliable evidence of insurance; a verbal we are fully insured means nothing without it. Always ask to see the current certificate and check the cover types and levels on it before work starts.
What does being named as an interested party mean?
Being named as an interested party means you are recognised on the contractor's relevant insurance policies for the work being done on your buildings, so your interest in that work is acknowledged by the cover. A properly insured contractor can arrange this without fuss. It gives a portfolio owner a stronger position than simply taking the contractor's cover on trust.
Why does the contractor's financial stability matter?
Because insurance covers the accident, but not whether the contractor still exists years later to honour a warranty. A 10-year workmanship warranty is only as good as the company behind it. A contractor with decades of continuous trading and a parent group behind it is far more likely to be there in year eight than one that might not survive the next downturn.
What if a contractor will not show its insurance?
Treat the cover as if it does not exist. A properly insured contractor produces a current certificate of currency and agrees to name you as an interested party without hesitation. Reluctance to do either is a signal, before you have signed anything, that the cover may be thinner than claimed, which is exactly the risk you are trying to avoid.
If you are letting a maintenance programme and want to know the contractor is properly covered and will still be there to stand behind the work, we will show you the certificate of currency, name you as an interested party, and tell you plainly what stands behind the business. Ask, and we will put the whole insurance and backing picture in front of you before you commit to anything.