Have you got is covered? Tradesman Saver reveals the five types of insurance the small builder will need.
Insurance isn’t something to take lightly, even more so when you work in the construction industry. As a builder, you’ll encounter potentially dangerous situations, and you need to be financially covered in case an accident causes damage to a client’s property or even causes them injury. In extreme situations, an accident may even leave you injured and unable to work, meaning you’ve missed out on any potential jobs and the income you could gain from it. And these accidents are hardly rare – in fact, according to statistics found by Tradesman Saver, one in every ten major job-related injuries happen in the construction industry, meaning the right builders insurance is absolutely vital.
Insurance offers you financial protection from these ‘worse-case scenarios’, leaving you safe in the knowledge that you won’t be left footing the bill for any compensation claims made against you. Here, we’ll go through the top covers which every builder must have in their insurance policies, as well as a couple of additional optional covers that you may find useful.
Public liability insurance
Perhaps the most important insurance policy a builder can hold, public liability insurance protects you against any liability claims made against you in case anything goes wrong. This includes covering any legal costs as well as compensation you might need to pay. Public liability insurance isn’t actually a legal requirement for contractors and business owners in the UK, but not having it could leave you financially vulnerable, especially if you need to pay out for costly legal fees as well as compensation. Some clients may even require you to hold public liability insurance, especially if you’re contracted by a local authority, who usually ask for a minimum of £5 million.
Personal accident and sickness insurance
If you’re ever left unable to work due to an accident or illness, personal accident and sickness insurance cover will give you a weekly payment so you’re able to continue paying your day-to-day bills. These accidents could be anything from having a defined injury such as a loss of eyesight or hearing, to broken bones and being left disabled, and it doesn’t matter if the accident happened while at work or not. This level of financial protection is ideal in case an accident leaves you off work for a prolonged period of time, ensuring that you’ll never fall behind on bills.
Contractors’ all-risk cover
Also known as insurer’s all-risk cover, this policy covers all the work that’s carried out by the builder or contractor which could be accidentally destroyed. This includes natural disasters like a storm or fire ruining a half-finished project. A lot of builders actually forget to take out this type of insurance, meaning you could be left out of pocket by paying for replacement work if you don’t have it. You probably won’t even need this cover, but it’s also probably not worth the risk to try and carry out your work without it.
Building guarantees and warranties
Building warranties cover is an optional policy which you might want to consider. Provided by you as the developer to the owner or buyer of the property, it simply states that your work has been completed to the high standard set by your building warranty provider. These covers are usually available for residential buildings, custom-builds, housing developments, and commercial premises, and can cover structural damage as well as defects to walls, roofs, and foundations. This isn’t usually included as standard in most policies, so it’s a good idea to ask your insurance provider if you want it.
Tools and equipment cover
Your tools are crucial to helping you complete your job, but they’re often expensive pieces of equipment which you’ve spent the entire course of your career collecting. If anything was to happen to them, like theft, you could be left footing a hefty bill to replace everything. Alternatively, you may accidentally damage an expensive power tool and not have the funds to immediately repair or replace it. Having insurance for your equipment means that, in the event of any accidents, you won’t have to worry about the cost for replacements, or the time it could take to get hold of them.
For further information on Tradesman Saver visit https://www.tradesmansaver.co.uk/builders-insurance/a-quick-guide-to-builders-insurance/