Builders Insurance, That Fits the Way You Work

At minimum, builders should consider key types of insurance such as public liability, employers' liability if you have staff, contract works cover, plant and tools cover, and builders accident insurance. Design-and-build contractors should add professional indemnity.

Comprehensive builders insurance policies offer a range of cover options, allowing you to tailor your policy with add-ons like personal accident or hired-in plant cover to suit your specific needs.

Meeting insurance requirements is essential not only for legal compliance but also as a contractual necessity for winning tenders and demonstrating professionalism to clients. Insurance is absolutely essential for construction professionals to manage high risks and provide third-party protection.

Employers' liability insurance is a legal requirement in the UK if you employ anyone, including casual or temporary workers. It covers claims from employees who are injured or become ill due to their work. Failure to have this insurance can result in fines of up to £2,500 per day and you must display your Employers' Liability Certificate where employees can see it. Everything else is technically optional, though most clients and contracts will specify a minimum public liability limit before you can start work.

Homeowners insurance covers a finished, occupied home against risks like fire, theft and accidental damage.

Builders risk insurance (also known as contract works or contractors' all risk insurance) covers the construction site and the construction project while work is ongoing, including protection for materials and equipment on site.

Contract works insurance protects builders against loss or damage to ongoing works, materials, and equipment during the course of construction.

During a build, homeowners cover alone is rarely enough and a dedicated builders risk policy is what protects the project, the site, and everything involved in the construction process.

Professional indemnity insurance for builders covers financial losses a client suffers as a result of professional negligence, such as errors in your design, specification, or professional advice.

This insurance is particularly relevant for builders who act as principal contractor on design-and-build projects, as it protects against legal claims arising from mistakes or omissions in professional services. In addition to covering financial loss, professional indemnity insurance can also help safeguard your business from reputational damage resulting from such claims, providing essential legal protection and supporting client trust.

It's also worth considering product liability insurance, which protects builders from claims if a product you've installed causes damage or injury after installation, although it's not legally required.

The deductible, known as the excess in UK policies, is the amount you pay towards any claim before your insurance policy covers the rest. Excess levels on builders all risks policies vary by insurer and the type of loss - such as theft, flood, or accidental damage, which may each have different excesses within the same policy. The builders insurance cost (premium) is also influenced by factors like the nature and size of your construction projects, your business's claims history, and the amount of excess you choose. Selecting the right insurance policy and excess can help tailor your cover and manage your overall insurance costs.

In the UK, it's usually the main contractor or developer who arranges and pays for contract works (builders risk) insurance, though this can be written into contracts differently. It's worth clarifying who holds the policy before work starts on any project - saves confusion later!