What insurance do builders need

As a builder, having the right insurance is a perfect way to protect your business and yourself from any risks that might arise. It’s also crucial for homeowners to ensure that they work with a builder that has the correct insurance before getting into a contract with them. Here are the different types of insurance builders need in the UK.

1. Professional indemnity insurance

Builder on a scaffold

As a builder, professional indemnity insurance protects your business against any claims by your clients. It covers the cost that would be incurred should a client make any claims against your business. It’s the perfect way to protect your reputation as a builder in case of any professional negligence or mistakes.

2. Builders public liability insurance

2 builders working on a scaffold

Public liability insurance protects the builders from any claims made against them by members of the public. This basically refers to the people who have suffered any injuries or property damage as a result of the builder’s work. The insurance covers the cost of any compensation, legal fees, and expenses resulting from such claims.

3. Employer’s liability insurance

Worker with safety black boots steps on a nail

Having an employer’s liability insurance is a legal requirement for any builder that employs anyone either permanently or temporarily. The insurance will cover the cost of any injury or illness claims made by employees as a result of their work.

4. Tool insurance

In case any tools or equipment are lost, destroyed or lost while on the site, tool insurance covers the builder from the cost of replacing them.

5. All risk insurance

This type of insurance protects the builder against any damages in case their work is accidentally destroyed. The damage can be either before the completion of the project or before the homeowner gets a chance to extend their policy to cover such. The cover is often overlooked but it’s ideal because it saves the homeowners huge financial bills.

6. Contract work insurance

Should any damage or loss happen while any building work is in progress contract work insurance will cover the repair or rebuilding work. The builder can take up an annual cover or take one up for each project. Most contracts require such insurance before embarking on the project, making it a crucial requirement.

7. Personnal accident insurance

Closeup of injured builder lying on the ground

With this cover, builders get financial support in case of any injuries sustained on the job. This can include death in case of an accident, serious injury or becoming permanently disabled.

With the different types of insurance that builders can opt for, it’s advisable to consult with insurance brokers or specialists to determine the best option for their business. It is also a perfect solution to protect the builder and his business against any risks that may arise.