We can offer builders and contractors a range of products, such as contractors all risk, tradesman insurance, and contract works insurance. Below we explain how construction insurance is paramount to protect against legal liabilities.
As a Willis Towers Watson Network Broker, we are experts in arranging cost-effective cover and have access to the best construction insurers. Business insurance for builders and contractors may include. public liability, employers’ liability, contract works, own plan and equipment, hired-in plant, and professional indemnity.
Construction insurance is a combination of covers designed to meet the needs of companies that undertake building work and traditional trades, such as a electrician, carpenter, general contractor, or plumber.
If an unexpected accident occurs on site the cost of a liability claim, or property damage can have a significant impact to your business. It is prudent to get contractors all risk insurance, or builders insurance to protect your financial security.
We’ve put together the below guide for companies to help navigate the jargon and better understand what construction business insurance you need to protect your interests and meet your legal and contractual obligations.
Bricklayers, builders, carpenters, cable contractors, dry liners, electricians, flooring specialists, general contractors, glazers, groundworkers, heating and ventilation, kitchen and bathroom fitters, landscape gardeners, office fitters, painters & decorators, plasterers, plumbers, project managers, tilers, and site managers, are just some of the trades we can accommodate with construction insurance.
Contractors all risk insurance is a flexible policy starting at £468 annually that provide a number of covers under one product.
Tradesman insurance is a package policy designed for small businesses that may work across a number of different trades.
Project specific contract works insurance is designed to protect the work in progress on site in the event property damage.
Public liability insurance (otherwise known as general liability) can offer builders protection from compensation claims arising from injury or property damage of persons other than your employees.
Employers' liability insurance can help offer builders financial protection from compensation claims arising from arising from bodily injury or illness of your employees.
Contract works insurance can help offer financial protection against the work in progress on a construction site in the event damage. Contract works insurance will reinstate or repair the building works resulting from any damage, i.e., fire, flood, explosion, etc.
Plant & equipment insurance can help protect builders against damage to own plant and equipment whilst in your custody or hired-in plant under your control or hired out under a defined agreement.
Construction professional indemnity insurance is recommended where your building firm provides design, or technical services to a client. It's worth noting that you can still be held accountable if you sub-contact the work. Therefore, as the main contractor, you should consider arranging professional indemnity, whilst also ensuring that your professional subcontractor maintains the same amount of cover.
JCT insurance helps protect 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. JCT insurance will typically be arranged under a separate policy for a specified project.
The premium that builders pay for your insurance policies will dependent upon a variety of different factors. For example, working at height, depth, or with heat will increases your exposure to claims under the policy.
A significant fact for insurers in calculating your construction insurance cost, will be your % of turnover paid to subcontractors. The higher the % paid to subcontractors the greater exposure to liability claims.
A basic tradesman insurance policy can start at £298 annually or £24.83 monthly for a small business that has one working director, one direct employee, and pays < 25% of turnover to subcontractors.
There are many different types of commercial insurance available to builders, tradesmen and construction companies. To ensure your business to adequately protected, talk to one of our experts about what other policies are available. Builders and contractors can be exposed to high liability claims for bodily injury and property damage, ensure your company is adequately protected.
Company fleet insurance is a cost-effective means of managing your car and van insurance for multiple vehicles under one policy.
D&O insurance starts from £345 annually and can offer individuals protection against civil, criminal, and regulatory proceedings.
Excess layer insurance will typically be arranged to provide additional cover for public liability, and potentially employers liability.
Understand whether your business needs an insurance broker to help with identifying financial protection.
We benefit from being affiliated with a global business and have access to leading insurance markets and policies provided by our partner insurer panel.
Working in a high-risk environment means having sufficient construction business insurance to protect your financial interests is highly recommended. Business insurance can help you save money if there’s an accident, and it’s usually required before you can start work on a project.
You should notify us if you undertake more than one trade, such as general construction and carpentry. We will be required to split your turnover by the percentage of time you would undertake for each business activity. That way, we’ll be able to provide you with construction coverage specifically designed to meet your needs.
If you are required to provide evidence of your business insurance, ask us to provide you with a certificate of insurance. You should not provide a copy of your policy schedule and wording to your clients as this is a contractual agreement between yourself and the insurer and may prejudice claims under your policy if you assist an allegation made against your business. As an insurance broker, we can also respond to specific construction project or tender requests to detail how your coverage operates.
Certain business activities carry increased liability risk, such as, asbestos removal, demolition, hot roofing, piling, scaffolding, tunnelling, and underpinning. If the work is in hazardous or high-risk locations this can impact your insurance cost and availability.
The amount of cover you require will depend upon your contractual obligations and appetite for risk. Liability claims that involving disability or death can be very expensive. Not to mention that awards made by the courts have increased to ensure compensation payments keep up with inflation and cost of living. Therefore, you may find that your level of builders insurance is not adequate. If you would like to discuss further, give us a call.
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