What is Builder Insurance?

Whether you are a large scale building employer or a small family run operation, there are certain safeguards that you need to put in place in order to ensure that you enjoy success.

Building sites can be dangerous no matter how experienced and careful you are. Unfortunately, accidents can happen to your workers, to your clients or even to members of the public, and when the worst happens it pays to have appropriate builders insurance cover.

Worryingly over 4,000 major injuries such as broken bones or fractured skulls are reported to Health and Safety Executive (HSE) every year by the construction industry*. Many of these would have been prevented by following health and safety procedures. However, if the worst happens and one of your workers suffers a back injury as a result of heavy lifting or a fall, it is vital that your builders insurance policy covers your legal liability to pay compensation for the injury as well as legal costs.

Builders insurance is generally offered as a specific variation of a tradesmen insurance policy. It is important that you check that the following types of cover are included in your builders insurance.

If, as a builder, you have any employees, by law you must have employers’ liability insurance. This insurance covers your legal liability for claims made by employees for injuries or illnesses they may suffer as a result of working for you. It is worth noting that limited liability companies with only one employee, where that employee also owns 50% of the shareholding, are not legally required to buy employers liability insurance. If your business falls into this category, you may rate yourself as a sole trader when seeking your builders insurance quotation.

You are at risk of being sued if a member of the public is injured as a result of your negligence or breach of duty in the course of your business. If you are found to be legally responsible for their injury or for damage to their property, you may be obliged to pay compensation: this could run to thousands, if not millions, of pounds. To protect your livelihood in the event of this happening, you need to buy public liability insurance.

Besides personal injury, one of the most frequent types of disasters in the building trade is damage or theft of tools and equipment. Your builders insurance needs to cover your premises and tools and equipment.

A large number of insurance companies specialise in builders insurance and you can easily get a quote online. Alternatively you may like to discuss your requirements with your Cherrypicked Insurance Broker.

* Source: Health and Safety Executive (Reproduced under the terms of Click-Use License)

Last updated - 01/2010

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