<iframe src="https://www.googletagmanager.com/ns.html?id=GTM-WCK3FXN" height="0" width="0" style="display:none;visibility:hidden" title="gtm-frame"></iframe>Why do I need insurance for my building business? | Trade Direct Insurance
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Why do I need insurance for my building business?

If you are in the building industry, you will know that there are all sorts of things which you must do to operate professionally. This includes finding appropriate insurance.  

Must I have builders’ insurance?  

In certain circumstances you are legally required to have insurance.  

If you employ anyone, you must have employers’ liability insurance. This is designed to protect your business if a current or former employee suffers injury or illness as a result of working for you.  

The requirement applies even if you only employ part-timers or trainees. You can be fined £2,500 per day if you don’t have insurance in place.  

If I don’t employ anyone, do I not need insurance?  

There are other situations in which you may need to consider insurance. These include:  

  • where you may come into contact with members of the public or clients while working
  • when you provide professional advice to clients
  • protecting against the possibility of being separated from your work tools 

Do I really need public liability insurance?  

Public liability insurance is designed to protect your business if something you or your business does causes someone harm or damages property, such as a passer-by tripping over tools and breaking an ankle or paint being splashed on a client’s vehicle.  

Unfortunately, claims like these are common. Even small incidents can amount to an order to pay damages, compensation and or legal fees of thousands or hundreds of thousands of pounds.  

Be aware that many larger clients will insist you have public liability insurance as part of your contract with them. Trades associations and other professional bodies can also request it as a term of membership. 

Do I need professional indemnity insurance?  

You may need to consider professional indemnity insurance if you offer professional advice as a part of your work. This could be advice about design, specifications, or materials.  

If your advice turns out to be negligent and causes your client financial loss, professional indemnity insurance will protect you if the client chooses to sue you.  

Is it worth getting insurance for my tools?  

The loss of your tools can stop your business in its tracks and may mean you cannot complete contracts or projects.  

If you cannot work, it can be difficult to find the money to replace your tools, leaving you trapped in a vicious circle.  

With insurance in place, your tools will be replaced quickly, and you can get back to work.  

Does it matter that I am self-employed?  

It doesn’t matter how your business is set up, you should consider which insurances you need.  

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