Construction liability insurance – do you have the right cover?

If you run a business in the construction industry, making sure you have the right liability insurance cover is vital.

The latest figures from the Health and Safety Executive show that 50 construction workers were killed while at work in Great Britain in 2010/11 and there were nearly 3,000 major injuries.

Employers liability insurance

Employers liability insurance for £5,000,000 is a legal requirement if you have any employees, even if they are temporary or casual. Claims can be very expensive and so the usual indemnity limit provided is £10,000,000.

Employers liability  insurance may also be required for your sub-contractors, if you are directing their work or providing tools and materials. If you’re not sure whether you need employers liability for sub-contractors, contact a commercial insurance broker for advice.

If you don’t have employers liability cover when you should, you are breaking the law and could be liable for a fine of up to £2,500 per day.

Public liability insurance

Public liability cover is not a legal requirement but is, in our opinion, a necessary cover for all businesses that deal directly with the public or work at other people’s premises. It covers you for mistakes that you might make which cause injury to a member of the public or damage to their property. The limit of indemnity you choose will depend on a number of factors and may be determined by the requirements of the client or main contractor, who will often want to see proof of your insurance.

If you use bona fide sub-contractors, you should declare this to your insurer and check that they have suitable insurance in place.

Speak to an independent insurance broker that specialises in business insurance for help with this and for deciding on the limit of indemnity your business needs. The standard limits for public liability insurance are £1,000,000, £2,000,000 and £5,000,000. Higher limits are available if required.

Product liability insurance

Product liability insurance is also available, if needed, for certain types of trade. Products liability covers claims from the public for injury or damage due to goods and products supplied.

For advice about construction liability insurance

If you have any questions about construction insurance or if you would like to receive a quote for employers or public liability insurance, please give us a ring on 01622 620531 or email us at

You can also click here to contact us through our website.

We’re here to help.

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Photo by University of Salford

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