What insurance should my builder have?

As a consumer it can be enough just to think about your own plans for an extension to your home or other building work. Therefore, it can be understandable not to think about whether your builder is adequately insured in case something goes wrong.

We look at what insurance your builder should be carrying, so you know what questions to ask for the next time you plan to have any building work done.

It’s also important for self-employed builders to know what insurance they should be carrying to ensure their business is protected, but also what other forms of insurance cover are available to builders that can help enhance the overall level of protection for their business.

Why does a builder need insurance? 

All business professionals face daily risks no matter what their industry sector is. An employee benefits from being covered by the liability insurances of their employers, whereas self-employed professionals should arrange their own insurance in case something goes wrong.

Building and construction work of any kind comes with certain elements of risk due to the nature of working with power tools and plant machinery and in a potentially hazardous environment, which can include trenches, trip hazards, exposed nails, uneven ground and more.

If you’re undertaking building work at your home, then your home becomes that hazardous environment whilst the building work is being undertaken.

If an accident happens to yourself, your family, or a visitor, because of the building work, or if accidental damage occurs to your property, then you as the customer will be able to rest assured that the builder is insured to cover the cost of any damages awarded and/or repairs that need to be made.

The builder will also have the peace of mind that any accidents are covered, and that it won’t have a detrimental impact on the finances of their business.

So, what insurance should my builder hold? 

At the very least, your builder should be able to prove they hold a public liability insurance policy. If your builder employs staff, which is highly likely, then they must hold employers’ liability insurance.

As the customer, public liability insurance is the policy that will provide protection for you and your assets while the building work is underway at your premises.

What does builder liability insurance cover? 

Our builder liability insurance can cover accidents and accidental damage to property, providing building professionals with the peace of mind that they’re covered if something goes wrong.

The builder liability policy can provide cover for legal costs and damages in the event of:

Injury to person/s – As part of a building project, an unstable wall that is being repaired collapses and injures a passerby, giving rise to a claim. Another scenario could involve a client being injured, by treading on a nail, when they are being shown around the building work and being updated on the progress of a home extension.

Property damage – The builder is carrying out repair work in the loft of a client’s home and accidentally puts a foot through the floor, causing damage to the ceiling in the room below. The public liability insurance policy would respond to cover the extra work and costs required to repair the damage.

Ask your builder to prove they are insured before giving the go ahead 

Before you sign a contract for any building work, it is a good idea to ask your builder to prove they are adequately covered in case anything goes wrong.

Related articles:

Risks of not carrying Tradesman Insurance

How trades can protect their businesses when hiring subcontractors