Construction Insurance
An expert guide about construction insurance for small builders
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.
Who are the best construction insurance companies and why you need a broker?
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.
What is construction insurance?
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.
At Get Indemnity™ we are specialists in contractors 'all risk' insurance
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.
Tradesman insurance
Tradesman insurance is a package policy designed for small businesses that may work across a number of different trades.
Contract works insurance
Project specific contract works insurance is designed to protect the work in progress on site in the event property damage.
Get construction insurance with Get Indemnity™ and save up to 25% on your annual premium
We are specialists in builder risk insurance. Talk to a broker about your business needs.Construction liability insurance and contract works insurance to help meet your contractual needs
Contract works
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
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.
JCT insurance
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.
How much does construction insurance cost?
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.
What other builders risk insurance policies are typically purchased?
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.
Excess layer
Excess layer insurance will typically be arranged to provide additional cover for public liability, and potentially employers liability.
Get contractor insurance tailored to your needs. Talk to one of our construction insurance brokers
Ensure your business is covered against serious financial losses and property damageWhy secure cover for your construction company with an insurance broker?
Frequently asked questions
Why do construction contractors need business insurance?
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.
What insurance should I get if my work involves multiple construction trades?
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.
Do we need a 'certificate of insurance'?
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.
What business activities are deemed high hazard?
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.
How much builders insurance do we need?
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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