What do you need builders' insurance for?
If you work in the construction industry, you may be aware that builders’ insurance exists. You may also be wondering whether it’s essential to have it.
What is builders’ insurance?
Builders’ insurance is a general term and covers several different types of insurance policies, so it is always important to check any insurance policy or quote to see exactly what it includes and how much insurance cover it provides.
There are certain types of insurance that may be included in your builders’ insurance such as:
- employers’ liability insurance
- public liability insurance
- professional indemnity insurance
- insurance for your tools and equipment
Why do I need employers’ liability insurance?
Employers’ liability insurance is a legal requirement if you employ anyone. What is legally classed as an ‘employee’ can be broad. It includes part-time employees, apprentices, and trainees. In some cases it may also include sub-contractors.
This type of insurance protects your business if a current or former employee suffers injury or illness as a result of working for you. You can be fined for every day that you don’t have this cover.
Why do I need public liability insurance?
You may want to consider this if you meet members of the public as part of your work. It protects your business if a third party, such as a client or passer-by, suffers injury or illness, or sustains damage to their property as a result of something your business has done.
Public liability insurance is sometimes a contractual requirement; you will need cover to the amount specified in the contract with your client. Your professional body or trades organisation may also ask you to have it.
In the event a claim is successfully made against you, having public liability insurance is vital. Without it, you could be made to pay damages and legal costs amounting to thousands or hundreds of thousands of pounds.
Why do I need professional indemnity insurance?
You may want to consider this insurance if you provide any kind of professional advice as part of what you do. Should your advice cause the client or customer a financial loss, this insurance will protect your business if they make a successful claim against you.
Why do I need insurance for my tools?
Your tools are your livelihood. Should they be stolen, damaged or lost, you may not be able to work. You’ll also have to pay to replace them. This is where insurance can be a huge help, ensuring you can get back to work ASAP.