Why do builders need insurance?
Builders work in environments rife with potential hazards. From accidental damage to a client’s property to workplace injuries, the risks are numerous. Without insurance, a single incident could lead to financial ruin.
Public liability insurance for builders, for instance, protects you if a member of the public is injured due to your work. Similarly, employers’ liability insurance is a legal requirement if you have staff, ensuring they're covered for workplace accidents or illnesses. Insurance gives builders the confidence to focus on their work, knowing they're protected from unforeseen events.
Builders' public liability insurance
Builders' public liability insurance is arguably one of the most critical types of cover for professionals in the trade. It protects you against claims made by third parties for property damage or personal injury caused by your work. For example, if a passerby trips over a poorly secured ladder on your site, public liability insurance covers the associated legal fees and compensation costs.
Public liability insurance for self-employed builders is especially vital, as it provides individual protection in case of incidents. Most clients also require evidence of public liability coverage before hiring, making it an essential part of any builder’s professional toolkit.
Other insurance builders buy
Beyond public liability, builders often invest in additional policies to protect various aspects of their operations. Here are some common types of builders trade insurance:
Employers’ liability
If you employ staff, employers’ liability insurance is legally required. It protects your building business if an employee becomes ill or injured due to their work. For example, if a worker develops repetitive strain injuries from using tools on-site, this policy covers legal costs and compensation.
Tools & materials
Tools are the lifeblood of any builder’s trade. Tools and materials insurance ensures your equipment is protected against theft, loss, or damage. Whether it's a stolen drill or materials ruined by weather, this policy keeps you operational without significant out-of-pocket expenses.
Owned & hired in plant
Builders often hire specialised machinery for specific projects. Hired in plant insurance covers the cost of repair or replacement if the rented equipment is damaged or stolen while under your care. This ensures you’re not left covering costly bills for items you don’t own.
Contract works
Contract works insurance protects ongoing projects against unexpected setbacks like fire, floods, or vandalism. If a half-built extension is destroyed overnight, this coverage ensures you can rebuild without financial strain. It's especially useful for larger, longer-term projects where significant progress can be at risk.
