Construction Insurance Brokers | Design & Build
Anyone working on site should ensure they have sufficient construction insurance to guard against potential liabilities
Compare construction insurance cost
Construction insurance includes covers designed to protect contractors in the building industry
Working in a challenging and high-risk environment means having adequate construction insurance to protect your interests. If an unexpected event occurs the cost to property damage or potential liabilities can be significant.
Construction Insurance FAQs
- What is construction insurance?
- Who should purchase construction insurance?
- Do we need design & build professional indemnity insurance?
- Types of construction insurance UK guide
- Who purchases professional indemnity insurance?
- Does the construction industry have increased risks of personal injury?
- Do we require non-negligence insurance?
- How to compare construction insurance quotes?
Working on site carries a number of risks, however the construction insurance you decide to purchase will be specific to your individual needs. As a specialist construction insurance brokers, we can assist with identify and negotiating protection from the wholesale market.
Which covers you decide to purchase will depend on a number of factors including your responsibilities, contractual requirements, size and risk appetite. Below we take a closer look at construction insurance and provide some background to assist with selecting the right covers to meet your needs.
What is construction insurance?
Construction insurance provides specialist cover for construction companies. The most common types of cover include:
> contract works (offered under a contractors all risk policy);
Who should purchase construction insurance?
The construction industry can be a challenging and dangerous environment, especially when considering the range of duties you owe to third parties. As specialist construction insurance brokers, we can identify a range of covers for:
> Bricklayers
> Builders
> Carpenters
> Carpet and flooring contractor
> Demolition contractors
> Dry liners
> Electricians
> Flooring contractors
> Glazers
> Groundworkers
> Heating and ventilation contractors
> Kitchen and bathroom fitters
> Landscape gardeners
> Painters and decorators
> Plasterers
> Plumbers
> Project managers
> Tilers
> Site managers
Note certain business activities carry increased risk, such as: asbestos removal; demolition; hot roofing; piling; scaffolding; tunnelling; and underpinning.
If the contract work is in hazardous or high-risk locations this can impact the terms insurers are willing to offer for your construction insurance.
Do we need design & build professional indemnity insurance?
The requirement to purchase professional indemnity insurance will be based on your responsibilities and contractual obligations.
A design and build contract, describes a situation where the main contractor is appointed to design and construct the works. As opposed to a traditional construction contract, where the client appoints consultants to undertake the design and then a contractor to build the works.
Design and Build professional indemnity is recommended where: advice, professional, or technical services are offered to a client. Or, if any main contractor subcontracts such advice, professional, or technical services.
For example, as the main contractor who employs an architect you can be held vicariously liable for the work undertaken if there is an error with the design. Construction professional indemnity claim examples include:
> mistakes in the preparation of designs;
> improper or negligent advice;
> breach of building regulations; and
> inadequate materials.
Types of construction insurance UK guide
The below guide identifies different scenarios and the types of construction insurance available to provide financial protection.
| What would happen if… | Construction Insurance: | What the coverage does: |
|---|---|---|
| There's a fire at your construction site and works you have completed have been destroyed. |
Protects the work in progress on a construction site in the event damage occurs as a result of an insured peril. |
|
|
An independent contractor falls in a trench and causes a serious head injury. |
Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
| An employee falls while climbing a ladder and causes a serious back injury. | Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
| A client requests financial compensation for a design error that has led to a roof collapsing. |
|
Protects your company against legal costs incurred in defending the allegation; and damages from any award or settlement. |
| An employee’s tools are stolen when left on a construction site. | Protect against damage to personal tools and effects belonging to an employee. | |
| Damage to your equipment, such as an excavator occurs during a construction project. | Protects against damage to own plant and equipment whilst in your custody or control or hired out under a defined agreement. | |
| Damage to your equipment you hire-in occurs during a construction project. | Protects your legal liability under the terms of your hiring agreement to pay compensation for damage to hired-in plant whilst in your custody or control. | |
| A neighbour requests financial compensation against your principle after damage to their property during the works you have undertaken. | Protects against claims should there be damage to a neighbouring property due to collapse, subsidence, heave, vibration, weakening or removal of support, or lowering of groundwater, which is not the result of negligence. | |
|
An accidental bodily injury, such as a loss of sight occurrs to one of your employees. |
Offers financial support as defined in the policy schedule. Benefits will be payable for death or disablement and related medical expenses. | |
|
Your business was unable to trade as a result of an insured peril. |
Protects against the loss of income from being unable to trade as a result damage from a range of insured perils. | |
| A product that your company imports causes injury to a customer and they claim for financial compensation. | Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
| A director is investigated and prosecuted by the Health and Safety Executive. | Protects insured persons against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
| An employee claims sexual harassment against their supervisor. | Protects the company against legal costs incurred in defending the allegation; and damages from any award or settlement. | |
| You discover an employee has been stealing thousands of pounds of materials. | Protects the company against financial loss from the theft of property, money or securities by an employee. | |
| A fraudster pretending to be a supplier reports their bank details have changed and payment is sent to the wrong account. | Protects the company against financial loss from the theft of property, money or securities as a result of social engineering. | |
| A cyber security breach occurs, and thousands of customer’s details are stolen. | > Cyber Insurance | Protects the company against financial loss arising from security and privacy breaches. Can include first and third-party losses. |
| A van accident occurs with one of your drivers at fault. | Protects from an accident causing damage or injury. Comprehensive cover will provide for damage to your car, van or haulage vehicle. |
As a specialist construction insurance brokers, we have the expertise to identify the most appropriate construction insurance to meet your needs. Please contact us to discuss further.
Who purchases professional indemnity insurance?
Construction professionals that usually purchase professional indemnity comprise of:
> Architects
> Building and industrial designers
> Building inspectors
> Civil engineers
> Construction management
> Design and construct
> Environmental consultants
> Geotechnical engineers
> Interior designers
> Surveyors
> Structural engineers
> Town planners
> Project managers
Does the construction industry have increased risks of personal injury?
Contractors working within construction are exposed to increased risks relating to personal injury. The largest cause of accidents and ill health on a construction site typically arise from:
> Falls from height
> Collapse of excavations
> Collapse of structures
> Exposure to asbestos or building dust
> Electric shocks
At get indemnity we maintain the knowledge and expertise to provide a range of products to assist manage your risk.
Do we require non-negligence insurance?
Working close to existing buildings or structures means there is the potential for that property to suffer damage. Dependent on the type of contract you agree with the property owner, you may need to arrange non-negligence insurance.
Public liability insurance will only indemnify the contractor against claims arising from injury or property damage to a third party which has resulted from their negligence.
If negligence cannot be proven, the contractors public liability policy will not respond. As a result, some contractors may leave their principles exposed and potentially find themselves in breach of contract. Additional information can be found via contractors all risk insurance.
How to compare construction insurance quotes?
Commercial construction insurance quotes can typically be offered within 48 hours after completing our online application. We will approach a number of wholesale insurers to present a range of no-obligation options.
Construction insurance cost will depend on a variety of factors including:
- allocation of turnover & wages between different construction activities;
- nature and size of your largest projects; and
- details with respect to work at a height, work with heat, excavations, or use of industrial machinery.
As specialist construction insurance brokers, we can access wholesale insurers to identify cost effective solutions to meet your needs.
This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.