What insurances should a building contractor have?

Insurance is essential for any professional building contractor. But the type of insurance you need may vary depending on the nature of your work. At Hallsdale Commercial, we specialise in insurance for contractors. We can provide a bespoke package of insurances designed to cover you for almost every eventuality. So, what insurance should a building contractor have? You’re likely to need a combination of the following types of cover.

Public liability insurance

Although it’s not a legal requirement, public liability insurance is often stipulated with contracts. And for good reason. If you’re a contractor coming into contact with colleagues, clients or members of the public, your public liability insurance will cover you for claims against your business. For example, if a member of the public is injured by falling debris from your building site, they could file a claim against you.

• Required by law?
  No
• Required by professional trade bodies?
  Yes
• Required by clients?
  Usually
• Advisable for building contractors?
  Yes

Employer liability insurance

If you’re a contractor who employs full or part-time workers in any capacity, you are required by law to have employer liability insurance. This type of cover will pay the legal defence costs and compensation, if one of your employees becomes ill or is injured in the course of their duties.

• Required by law?
  Yes
• Advisable for building contractors?
  Yes

Contract works insurance:

Contract works insurance, provides cover for property damage in respect of work in progress including materials on site and in temporary storage.

• Required by law?
  No
• Required by professional trade bodies?
  Yes
• Required by clients?
  Usually
• Advisable for building contractors?
  Yes

Find out more about our contractor insurance

Plant protection insurance

Building contractors operating specialist construction plant and machinery and can benefit from plant protection insurance, which is designed to cover the cost of loss or damage to either owned or hired-in machinery. It would also include cover in respect of continuing hire charges in the event that the hired in plant is damaged.

• Required by law?
  No
• Required by professional trade bodies?
  No
• Required by clients?
  No
• Advisable for building contractors?
  Yes

Find out more about plant protection insurance

Professional indemnity insurance

Professional indemnity insurance is a type of cover that protects businesses offering professional advice or recommendations, such as design to their clients. It will cover the legal defence costs and damages if your client faces financial damage and accuses you of negligence.

• Required by law?
  No
• Required by professional trade bodies?
  Yes
• Required by clients?
  Usually
• Advisable for building contractors?
  Yes

Find out more about professional indemnity insurance

Vehicle insurance

Just as you must have insurance to drive a car on public roads, you will also need insurance for any vehicles you use in the course of your work as a building contractor. For large building contractors, vehicle fleet insurance could be a consideration.

• Required by law?
  Yes
• Advisable for building contractors?
  Yes

Directors and Officers Liability Insurance

Directors and Officers Liability Insurance (D&O for short) is designed to cover claims made about a company’s directors. Building contractors who are directors or senior managers should consider D&O insurance to protect themselves from costly legal costs, if claims are brought against them.

• Required by law?
  Yes
• Advisable for building contractors?
  Yes

Find out more about Directors and Officers Liability Insurance

Protecting your workplace against risk

We’ve seen that contractors face a number of risks during the course of their work. So, in addition to insurance, risk management should always be a priority. Conducted thoroughly, risk management can prevent dangerous or financially damaging incidents, and make it less likely that you will need to make a claim on your insurance.

Find out more about risk management

For more information on how Hallsdale Commercial can help you with contractor insurance, get in contact today.