Apart From Builders’ Insurance, Do I Need Other Types Of Insurance?

As a builder, you need builders’ insurance. But what does it cover – and do you need more cover than you think?

It depends on your business and how you work. You may need contractors’ all risks (CAR) insurance, employee insurance, van insurance, or other sections.

You can arrange extra cover where you need it by calling us today. We can help you find affordable extra cover to protect you, your tools and your employees.

In this article, we’ll go over the following:

• What does standard builders’ insurance cover?
• Are my employees covered by my builders’ insurance?
• What is contractors’ all risks insurance?

If you’re confused about where you stand with regards to your policy, we can help sort things out and arrange any extra insurance you may need.

What does standard builders’ insurance cover?

Builders, contractors and tradesmen of all types should all have specialist insurance tailored to the type of work they are carrying out. This lets them work in others’ homes and properties safely, and will cover the costs of repairs or replacements if misfortune occurs. This applies not only to their clients, but other members of the public as well.

Building sites are very dangerous places, and this is the number one reason builders need insurance. If you’re starting out, you will surely find it more difficult to find clients willing to take a risk on an uninsured builder. If things go wrong, you could find yourself horrendously out of pocket, at the receiving end of a lengthy court battle, and perhaps even lose your business.

Standard builders’ insurance includes public liability as a minimum. It protects the customers of the tradesmen or any member of the public in the event that a claim should arise and the tradesmen are responsible.

If you accidentally damage your client’s property while working on the site, your public liability section will cover the cost of the labour and materials involved in replacement.

Are my employees covered by my builders’ insurance?

Not as standard. Public liability will not cover extra workers you bring on site for larger or more technical jobs. If you can’t rewire a socket or don’t have the time or skills to plumb in a central heating system, you need to hire other people – and those people need to have insurance.

If they are sub-contractors, they need to have their own insurance. Beware taking on an uninsured sub-contractor: if something goes wrong, it will be you who has to pay the price. Always do your research and make sure the tradesmen you are working with are legitimate and fully protected.

However, if you employ anyone other than yourself and family members, then it’s a legal requirement to have employers’ liability cover. This could cover you for compensation claims if your employee suffers an injury or illness as a result of working for you.

Employers’ liability is a common section which can be added on to most builders’ insurance policies, so get in touch and we can arrange that for you.

What is contractors’ all risks insurance?

Contractors’ all risk insurance protects against physical damage to works while they are in progress. Contract works insurance or contractors’ all risks (CAR) insurance – not to be confused with “car insurance”, just to make things more complicated! – gives you protection if your building site is destroyed by fire, flood, or other natural circumstances. It also covers damage to materials and equipment, including hired-in equipment.

Standard public liability cover will probably not cut it if you accidentally cause damage to a property you were hired to work on. Having a contractors’ all risk policy in place would fill in any gaps to pay for all the damage.

For example, say for example you are building a conservatory and it burns down before you hand it back to the owner. The good news is, no one suffered injury and no property was damaged because it was empty. Public liability would not cover it – but the cost of the build so far will come back to you thanks to your contractors’ all risks policy.

As building is a dangerous profession, you need comprehensive builders insurance to make sure everything goes smoothly. Get in touch with our experts and we can help arrange the right policy for your business.