Insurance for Builders, Tradesman and The Construction Sector
Source High-Quality Tradesman Insurance with Insurance by Simply
Working in the construction industry brings with it an inherent amount of risk. Risk which needs to be protected against, from dangers to third parties from the falling of objects and equipment to theft and vandalism. Here at Insurance by Simply, we’ll help you source the best possible construction insurance for your business, whether you’re a sole trader or a large construction company.
Why Do Builders Need Insurance?
Builders need insurance for a variety of reasons; from legal obligations through to trade association membership criteria, but most importantly, to protect both themselves and third parties from risk and liability claims. Whatever sector you work in, there’s always the chance of an accident occurring.
When you work in the construction sector, those chances are much greater given the nature of the work. Climbing ladders and scaffolding, operating heavy machinery and dealing with potentially toxic chemicals/materials all pose elevated degrees of risk. By properly insuring your company, those who work for you and other third parties, you take a significant weight off your shoulders.
If you’re not insured and something happens, an accident on-site, for instance, then you could be in big trouble, having to fork out compensation claims, medical fees and legal expenses to name just some of the costs. It’s simply not worth the risk, which is why you should consider Insurance by Simply.
What Type of Insurance Do Construction Sites Need?
There are three main types of insurance construction sites need include Contract Works, professional indemnity (PI) insurance, public liability (PL) insurance and employers’ liability (EL) insurance. The lattermost insurance type is a legal requirement (under the Employers’ Liability Act 1969) for any business that employs even one other employee.
Professional indemnity (PI) insurance
PI insurance protects you in the event that a client or third party suffers reputational or financial damages as a result of goods/services you or your business provided. PI cover commonly ranges from as little as £50,000 all the way to £5 million (and even higher). Keeping good records, showcasing (and being open with) your claims history and displaying evidence of good risk management are all ways you can potentially bring down your PI premium.
Public liability (PL) insurance
This protects you from third-party claims; if a piece of equipment falls from scaffolding and damages your client’s motorbike, for instance, then this would be covered by PL insurance. Cover typically ranges from £1 million through to £10 million. Certain trade bodies require evidence of a minimum (usually of £2 million) public liability insurance in order to join, as well as a good previous claims history.
Employers’ liability (EL) insurance
EL insurance provides protection if an employee suffers an injury or accident whilst under your employment – whether that be on-duty or off-duty.
Contract Works
Contract Works Insurance, also known as Contractors All Risk, is an insurance for builders and other tradesmen; designed to protect building works in progress and cover for loss or damage that happens during construction.
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Do Tradesmen Need Special Insurance?
Aside from the core insurance types we’ve detailed above, tradesmen can also look to get tools and equipment cover, plant equipment insurance and contracts work cover, which protects builders if a project they’re working on suffers accidental damage midway through the build. This might be from flooding, vandalism, theft or a fire. A consultation with one of our brokers will be able to determine whether you need any additional specialist insurance.
How Much Cover Do I Need?
The amount of cover you’ll require as a builder or tradesman depends on whether you employ others or are a sole trader, how often you interact with third parties, the type of construction work you undertake, and more. A sole trader will require less cover than a national construction firm, for instance, because they’ll be exposed to fewer instances of risk, and won’t have to cover employers’ liability insurance fees.
The cost of your cover will also depend on whether you want a standalone policy, or whether you want to bundle various policies together into one overarching premium. Trawling the internet for different policies is tedious, time-consuming and often results in you paying more than you need to. With a singular builders insurance policy, however, which contains all that you need, you’re almost guaranteed to get better value for money.
Experienced Brokers Working Tirelessly For You
Offering a tailored, personalised quote to each and every one of our clients, the team of brokers here at Insurance by Simply will work with you to establish what policy is best, and what level of cover is most appropriate to you or your business. With connections with both large commercial insurers and more specialist providers, we can put together a bespoke premium for you.