What exactly is Builders Insurance?
Builders insurance is specialised insurance required by building contractors and tradesman that are working for themselves. A builders insurance policy will cover a builder contractor or tradesman for the specific risks they typically deal with in their day-to-day work. Builders work in a specific and high-risk environment involving outdoor elements and working with the public. They also need insurance that will cover materials and liability should things, unfortunately, go wrong.
What is builder’s insurance?
Builders, contractors, and tradesmen need insurance that covers them to work in businesses and other people’s homes and properties. Typically part of their work is construction and demolition so safety and protection against the costs of repairs if unintentional damage occurs is an absolute necessity. The nature of their work means that things can go wrong and it’s not only the client’s property that can be damaged, neighbouring property and gardens can be affected as well. A situation that involves the clients and neighboring property is the main reason why builders and contractors need insurance. A responsible tradesperson or builder will have comprehensive insurance in place before they engage in any work. This includes painters, builders, contractors, electricians, plumbers, and carpenters, to name but a few.
What type of insurance do I need as a building contractor or tradesperson?
- First of all you have to have the right cover for you. You need to protect yourself, your clients and their property, your staff, and your equipment or materials. With this in mind there are a few types of liabilities that every tradesperson should be seeking insurance for:
- Public Liability protects your clients and any member of the public in the event that a claim should unfortunately arise and you are deemed responsible. If you accidentally damage your client’s property while working on their site you can claim cover from your public liability.
- Products Liability protects you if a claim arises due to a fault relating to materials you installed. It happens! Maybe a tile was faulty, a pipe had imperfections, and failed after installation. You can then pursue the manufacturer if the materials were in fact defective, once you have installed the materials correctly.
- Employers Liability protects you in the unfortunate event of an injury, accident, or death of an employee. If they or a family member sue you and make a claim against your business, the insurer will pay for the cost of the claim if they can prove you acted negligently and were able to prevent their loss.
- Machinery Insurance will cover you in the event of theft, fire, or accidental damage. Your tools and machinery are an essential part of your business. They keep your business going and it is highly advisable that builders and tradespeople have all their tools and machinery fully insured.
- Professional Indemnity insurance or PI will protect your legal liability for the advice and any designs that you provide to your client.
- All Risks insurance is specific to builders, contractors and tradespeople. It will cover comprehensive cover for contract works including damage to the project being worked on, own plant(a digger for example), hired-in plant( a cherry picker for example), and employee’s tools.
Does Builders Insurance apply to me?
If you are a builder, contractor, tradesperson, plumber, bricklayer, stonemason, heating or plumbing engineer, plasterer, electrician, carpenter, tiler, painter, decorator, roofer, fit-out contractor, flooring contractor or you are in an associated trade of any size, then yes you should have builders insurance.
Sheridan Insurances have been helping builders, contractors, and tradespeople find suitable insurance for over 40 years. We know the market, we know the products available to you on the market and we will find the best possible policy for you with competitive terms.
We would be delighted to have a conversation with you if you have concerns about cyber insurance for your business.