Building Contractor Insurance

There is a large variation in the size and types of building contractor businesses.  As such your building contractors insurance needs and requirements may vary.

Building contractors insurance is an essential part of your business plan and there are a number of key risks that your insurance should cover:

• As a self-employed building contractor, your building contractors insurance should include liability insurance to cover your legal liability for injury to either your employees or members of the public occurring in the course of your business. Even if you are a sub-contractor, it is still necessary to take out liability insurance as most main contractors will not allow you on site unless you can prove that you have the appropriate insurance in place.
• You may require other insurances such as Contractors All Risks cover,  (which provides cover for the contract works as well as site huts, unfixed materials plant and employees’ tools).
• Arrange road risks liability cover for your plant equipment if appropriate
• Do you use hired-in plant equipment?  If so, make sure that your liability for damage to this is covered.
• Your equipment, supplies, tools and even documents are all significant assets that should be protected by your building contractors insurance policy.
• If you intend to pursue government or municipal contracts, it is important to be sure that you have all the coverage required to pursue those contracts. While proof of insurance is not necessary to place a bid for most jobs, it is essential once the contract is approved and it will help fast track the process.

 

Getting your insurance sorted out should not be difficult. There are many companies offering ‘quote and buy’ insurance policies online, including tradesmen insurance which is a generic insurance product that can be used to cover you as a building contractor.

If you have any doubt about the insurance you need or you feel your business activities are slightly different or perhaps more high risk than the norm – piling, demolition work, work in or on bridges, railways or airports for example - your local Cherrypicked Insurance Broker will be able to help.  

It is worth spending a little time and effort to make sure you get the building contractor insurance cover that you need.

Last updated - 01/2010

To talk to an expert in your area and get a quote contact your local insurance broker.