Looking for Builders’ Insurance?
If you’re a builder it’s essential that you take out insurance. As you know it’s a high-risk profession and one that can result in injury and downtime for workers, as well as risks to machinery and materials too.
Working in the construction industry can be hazardous and you’ll want to do as much as you possibly can to protect your employees and the public as well as yourself should an accident, injury, theft or damage occur. As with other types of business there is some insurance that you’re required by law to purchase and additional policies can help to minimise the financial impact of unforeseen circumstances.
Types of builders’ insurance policy
Builders’ insurance isn’t just a level of financial protection, it can also help you to get work particularly if you’re working as a contractor. Many public-sector businesses or construction companies only work with insured builders, so if you’re not covered you could be missing out on jobs and contracts. Here’s a few important policies that you may benefit from looking into:
If you’re a sole contractor working on your own then there’s no need for you to have this one, however, if you’re hiring permanent or temporary employees to work for you, then by law you’ll need to have this kind of builders’ insurance. It will help to cover you in case employees are made seriously ill or injured while working for you and want to claim compensation.
This can cover you against damage to third party property (such as dropping tools or materials onto a car below), as well as injury or death of a member of the public due to your work or building site. Usually you’re able to claim back any legal costs associated with this too.
Whether it’s lost, stolen or damaged by accident, your equipment, both hand and power tools can be covered. You’ll need to check if things such as business laptops and phones are also covered especially if you’re mobile as this might need additional cover.
Helps to cover the cost of building and construction materials that may be stolen or damaged on-site.
If you operate from a central premises then you might want to take out this cover against flooding, fire or weather damage. This can also sometimes cover you for business interruption, but you’ll need to double check if your insurer will do this.
Whether it’s your own plant, or hired-in plant equipment, you can be covered for accidental loss, damage or theft. If you’ve hired it in, you can also claim for legal and compensation costs if it’s been included in your hiring agreement.
Keeping monthly builders’ insurance premiums down
Although builders’ insurance may seem like a hassle, it’s essential to protect yourself in such a high-risk profession. Mistakes can be costly and if you have your own employees then you’ll need at least employer’s liability insurance. There are things you can do to keep builders’ insurance premiums as low as possible whilst still getting cover that meets your needs.
Don’t leave them in your van overnight, move them to a secure location with alarms and CCTV.
Make sure you’re comparing insurers and their policies, and in some cases, you can combine policies with one insurer to make it more cost effective.
Check that you’re not taking out an additional policy if the type of cover is already included in one you already have.
Show insurers your commitment by keeping yourself and any employees up-to-date on training, particularly health and safety, and complete any accreditations too.
Builders’ Insurance – Useful FAQs
Yes, as you’re working in a hazardous environment you’ll need to cover yourself, employees, tools and machinery, and the public too. There are a few different types of builders’ insurance available, and often insurers will offer you the chance to combine multiple policies (which also makes it less of a headache to sort out).
You may have just one van, or a couple that your employees use too. If you’re using them to carry equipment and materials to and from site then these vehicles will need their own commercial vehicles insurance cover which is different from your regular car insurance. Speak to your insurer and find out whether a fleet policy is your best option.
No, by law you’re not required to pay this, however it does protect you financially against accidents such as scaffolding collapse, dropped tools damaging third party property and of course, injuries to the public as a result of your activity. These can often end in a compensation claim as well as hefty legal costs so it might be worth looking into.
If someone steals your tools it can seriously harm your income and even lead to legal action if it causes huge delays on a building project. Contact your insurer and find out the process of making a claim so you can replace them as quickly as possible and find out if you’re also able to claim for the loss of income due to downtime too.
Contract works cover can help to financially protect you should the building site you’re working on become damaged or destroyed accidentally. This will also help to cover you for any tools or building materials that you had on-site at the time.
With fleet insurance you sometimes have the added bonus of receiving a full package with accident recovery, roadside repairs and even a courtesy van too.