What is Builder Insurance?

The peaks and troughs of the macro-economy usually impact on the construction industry, yet regardless of wider economic trends those with good entrepreneurial skills and an eye for openings can nevertheless carve a lucrative niche for themselves in the building trade.

However regardless of 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 don’t end up bankrupt.

As many builders have realised to their detriment 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.

A National Audit Report in 2004 found that building workers are three times more likely to be seriously injured than the average and that deaths in the construction industry accounted for over 30 per cent of work place deaths in the U.K.. By ensuring that you have the correct builders insurance policy, you know that you will be covered if one of your workers were to injure their back doing heavy lifting, or in a fall. Or perhaps a visiting client trips or is hit by falling debris. If any of these events were to happen it is expected that those injured will claim compensation as well as legal costs and hence it is vital that your builders insurance covers all likely eventualities.

Builders insurance is generally offered as a specific variation of a tradesmen insurance policy. That said, it is important that you need to check that the following types of cover are included in your builders insurance.

If, as a builder, you have any employees then by law you must have employers liability insurance. This type of builders insurance provides cover for your legal libilities arising from claims made by employees for injuries or illnesses they may suffer as a result of working for you. It is worth noting that the rules for employers liability insurance have changed. From February 2005, Limited Companies in the UK that only have one employee, who also owns 50% of the shareholding, no longer need to have employers liability insurance. If your business falls into this category you may rate yourself as a sole trader when seeking your builders insurance quotation.

In addition, you are at risk of being sued if an employee or a member of the public is injured as a result of your negligence or breach of duty. If you are found responsible for damage to someone or their property then you may be legally obliged to pay the claim amount, which could run to thousands, if not millions, of pounds. To protect against this type of event happening public liability insurance offers cover for your legal liability for any damages that a member of the public may be awarded as a result of injury or damage to them or their property caused by your business. It also covers legal expenses or any other expenses in relation to the claim.

Outside of personal injury one of the most frequent types of disasters in the building trade is the damage or theft of tools and equipment. It goes without saying that your builders insurance needs to cover your premises and tools and equipment. So even if your site were to be vandalised when you wake up in the morning, you know that the damage and losses incurred will be covered by your insurance.

Finally, as there are a large number of insurance companies that specialise in builder insurance, it will be well worth your while carrying out a comprehensive web search to ensure you get the best deal available.

(Ref: FP537)

To talk to an expert in your area and get a quote.