Builders insurance

Without business insurance, you could be liable to pay out hefty legal fees or compensation if someone suffers an injury due to your construction work. Builders’ insurance could help cover you if a claim is made against you, and depending on the level of cover you choose, it can also help protect you if you cannot work due to injury.

Some clients may insist on builders having public liability insurance, so having sufficient insurance in place might be needed when securing new trade.

Whether you’re building an extension on someone’s house or demolishing a building, it’s risky business. Public liability insurance helps protect you if someone suffers an injury because of your work and claims against you. 

Public liability insurance is essential if the following events were to happen:

• You knock down a wall, and a brick falls and smashes a neighbour's window, and they claim against you
• Your scaffolding collapses, and an employee suffers a severe injury, which causes them to be unable to work
• A member of the public trips over some debris and suffers a permanent injury, and they make a claim

If you employ contractors, since they aren’t technically employees, employers’ liability insurance won’t cover them. That’s why it’s a good idea to take out public liability insurance in case they injure themselves or someone else while working for you.  

Bona Fide contractors usually have their own insurance and do not need to be covered by employers’ liability insurance. But if you hire Labour only sub-contractors, they are often classed as employees and therefore need to be included on your policy.

In any case, you must disclose to your broker/insurer if you hire contractors. If they are working under your company name, then any damages they could cause may be covered under the public liability insurance; but this must be disclosed to your broker/insurer to ensure you are covered correctly.

If it’s only you then employee’s liability insurance is not needed. But, if you bring anyone else on the job, including staff or apprentices, then you’ll need to take out employers’ liability insurance. If you don’t, you’ll be breaking the law.

Although not a legal requirement, other types of cover are essential when working in construction, including public liability insurance. If you don’t have this, you run the risk of paying out compensation or, even worse, being taken to court by unhappy customers or suppliers. 

At Bionic, we celebrate and champion UK business owners and want to help in every way we can. Our knowledgeable insurance team work with a panel of trusted insurers to find you the right cover. Start a quote online to compare business insurance providers today.