Builders Insurance

The builder’s lot is not a simple one – not as simple and straight forward as you might first imagine.

Any building contract is likely to involve a number of steps requiring professional judgement and execution:

  • first comes discussion with and advice given to your clients about any building project;
  • designs and drawings need to be made – often requiring the input of an architect and possibly an engineer;
  • the detailed specifications need to be calculated;
  • the services of a professional quantity surveyor might be needed; and
  • only then may a start be made on the physical process of actually building the proposed structure.
  • at any step along the way, mistakes, errors or oversights may be made – to the financial loss of the client.

When the client suffers any such loss, it is likely that the builder is going to be held to account by paying for faulty building works to be put right. That is where builder’s insurance needs to step in.

What is builder’s insurance

What is builder’s insurance

Builder’s insurance is designed to indemnify you against claims that may be made alleging your negligence as the builder.

If the building works involve improvements or an extension to an existing residential property, it is highly likely that the homeowner already has building insurance in place. Whilst this protects your client’s interests, however, you still need to ensure that you have adequate builder’s insurance to safeguard and protect your own business.

It may also extend to protection for the assets of your business, such as insurance against theft, loss or damage of tools, plant, machinery and equipment you use for building contracts and the insurance of a vehicle or vehicle fleet also used by your business.

What does it typically cover?

What does it typically cover?

Just as there are many different types of building firm, so there are different types of builder’s insurance, tailored to meet the scale and nature of works likely to be undertaken.

The principal elements of cover included in a typical policy include:

Public liability insurance

  • a building site is a potentially dangerous place and you have a duty to ensure that passersby and other members of the public suffer no personal injury or damage to their property because of the work you are doing – a slate slipping from a roof and hitting a neighbour, for example, or damaging a neighbour’s parked car;
  • public liability insurance offers indemnity against the – potentially substantial – claims which are likely to be made;

Employers’ liability insurance

  • most builders employ others to help them on building projects;
  • if that is the case in your business, the law requires that you also hold a minimum of £5 million employer’s liability insurance, to ensure that you may meet any claims from employees who are injured or contract an illness because of the work they are doing;

Premises, tools, plant, equipment and vehicles

  • builder’s insurance may also extend to cover for any premises you own, tools, plant and equipment you use, vehicles owned by the business and other assets.

Who is builder’s insurance suitable for?

Who is builder’s insurance suitable for?

Builder’s insurance – in any one of its variations – is likely to be suitable for any type of builder, from the sole trader, to small or medium sized business or larger corporations.

Summary

Summary

Building works may be complicated and involved process, with seemingly multiple risks and perils to be faced.

To protect your business against these various liabilities and the assets upon which you depend, you might want to contact us here at Specialist4Business to discuss your needs for builder’s insurance.

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