If you are a contractor connected to the construction industry you need liability insurance to protect you in case someone is injured or their property is damaged as a result of your work.
You might also want to insure your stock, tools, own and hired-in plant and the contract works (work in progress) in case of loss or damage.
Other covers are also available including Professional Indemnity, Legal Expenses and Directors And Officers insurance.
Employers Liability, Public Liability & Contract Works
Construction is a high-risk industry and it is important that contractors, builders and tradesmen working in the construction industry have the right insurance in place.
- Employers Liability insurance is normally a legal requirement if you have any employees (this includes labour only sub-contractors and family members if you are a limited company) and provides cover for any injury or disease arising out of their employment.
- Public Liability insurance covers you if you cause injury to a customer or member of the public or damage to their property, subject to policy terms and conditions. You should advise your insurance company if you use bona fide sub-contractors, so that some contingency cover can be included.
- Contract Works insurance covers the site or building works and materials should they be damaged or stolen before the contract is complete. Contract works insurance can be extended to cover site huts, tools and own and hired-in plant.
Businesses with more than ten employees (or labour only sub-contractors) will usually need contractors combined insurance. This includes public liability, employers liability and contractors all risks and is rated on estimated annual wages and turnover.
There are contractors combined insurance products available for most trades. Click the link below to see a list of some of the types of trades that can be insured on this basis.
An independent business insurance broker will be able to advise you what is best for your business.
Whether you are a sole trader, work in a partnership or run a limited company, a tradesmen insurance policy may be suitable for your needs. This can include public liability insurance, employers liability insurance and cover for your tools and equipment.
Tradesmen insurance policies are designed for the small business and are usually rated on the number of people working. They can cater for up to about ten employees.
The cost of contractors liability insurance depends on a variety of factors including the type of work you do, the size of your business, the sort of clients you work for and whether or not you have had any previous claims or losses.
It also depends on the limit of indemnity you need and whether you work at height or use heat.
If you need liability insurance to work in airports or on motorways, for example, the cost will be higher than if you only work in private houses and flats.