<iframe src="https://www.googletagmanager.com/ns.html?id=GTM-WCK3FXN" height="0" width="0" style="display:none;visibility:hidden" title="gtm-frame"></iframe>What is builders' insurance? | Trade Direct Insurance
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What is builders' insurance?

If you’re in the construction industry and trying to arrange your insurance, you may be wondering what builders’ insurance covers.  

Do I need builders’ insurance? 

If you work in the construction industry you will need to consider which builder’s insurances your business requires. There are different types, so you should take the time to understand which you may need.  

What does builders’ insurance include?  

Builders’ insurance is a general term used to describe several types of insurance products. What it includes will vary slightly from one insurance company to another.  

In general, builders’ insurance can include:  

  • public and product liability
  • employers’ liability
  • professional indemnity
  • insurance for tools and equipment 

This is not an exhaustive list. If you think you may need additional insurance, discuss this with your insurer.  

What are public and product liability insurance?  

Public liability insurance is designed to protect your business in the event something your business does (or fails to do) causes injury to someone or damages their property.  

The types of incidents covered can range from very minor (e.g. splashing paint on a vehicle next to a site) to serious accidents, illnesses, or even death.  

Many larger clients may want you to have this type of insurance, with specific minimum amounts of cover. Professional trades organisations may also insist that you have it.  

Product liability insurance is similar but relates to damage or injury caused by a product you supply or install 

What is employers’ liability insurance?  

This is designed to protect your business in the event a current or former employee is found to have suffered illness or injury as a result of working for you.  

You are legally required to have at least £5 million in cover if you employ anyone, including trainees, apprentices, and even some sub-contractors. You can be fined for every day that you don’t have it. 

What is professional indemnity insurance?  

This type of insurance covers you if you provide professional advice which turns out to be wrong, resulting in a financial loss for the client or customer. 

The advice provided could be about a range of things, including designs, specifications, or operation. 

It’s not a legal requirement to have professional indemnity insurance.  

What about insurance for my tools?  

This is not a legal requirement, but it can be an important consideration for your business. If your tools are stolen and you can’t afford to replace them, you will end up being unable to work. 

Where can I get builders’ insurance?  

You should choose an insurance company experienced in dealing with builders and the construction industry. They will be able to advise you precisely and provide a quote for the cover you need.  

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Trade Direct Insurance Services Limited (company number 1580129). Registered office Mill Pool House, Mill Lane, Godalming, Surrey, GU7 1EY. Trade Direct Insurance Services Ltd is authorised and regulated by the Financial Conduct Authority (FCA), firm registration number 307734. You can check this by visiting the FCA website at www.fca.org.uk/register or by contacting the FCA on 0800 111 6768

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