What is builders insurance?

Building and construction sites can be dangerous environments with many opportunities for accidents. Builders insurance is a specialist cover for those working on construction or renovation of buildings.

What does buildings insurance cover?

Buildings insurance can include personal injury, employee liability, public liability insurance and legal insurance. Depending on the size of your business, your needs will differ. While none of these policies are a legal requirement, other companies may insist on receiving a public liability builders insurance certificate to sub-contracting or working on larger projects.

Builders Compensation claims

Builders insurance compensation claims payout for injuries and losses suffered as a result of your building company.

Damage to property

Undoubtedly you’ll work away from your business premises. Suppose a customer’s home, property (like a car) or contents (someone’s watch, phone, etc.) are damaged. In that case, a builder’s public liability insurance will cover the cost of repairs or replace the item.

Medical fees

Suppose your business is found to have practised with negligence or malpractice. In that case, medical fees cover will cover the cost of medical treatment. Medical fee cover is essential for builders as toxic materials can sometimes be used. There is also lots of heavy, dangerous machinery. If dealing with asbestos, a specialist asbestos insurance quote is the best option. Even in the UK, where the NHS will cover most procedures, this can cost a business £ 1000’s.

Injury or death

Tragically, 40 construction workers died in 2019 at work. Suppose an employee, stakeholder or member of the public dies due to activities of your business. Your business could be held accountable for compensating their next of kin. Employee liability will usually cover the death of an employee. In contrast, third party builders public liability will cover all other individuals.

Builders Public liability insurance will not cover:

Cyber Insurance – dealing with customers details electronically opens every business up to the potential of cyber threats. If you even store customers numbers on a mobile phone, you can cover yourself against the liability of cybercrimes.

Injury on the road – In the UK, it is required by law that a third-party motoring policy covers every bike, car, van, lorry or other vehicles.

Does my business need builders public liability?

It is not essential by law to operate with a builder’s public liability insurance. However, every business should consider buying one if they deal with the public in any way. There are also occasions where other companies will not deal with a business that does not possess a public liability policy.

How much public liability insurance do I need?

Bigger corporations will want more extensive coverage, however, a great place to start for small firms is £1M. Local council jobs will generally require at least £5M before awarding you the business.