A Guide to Building Contractors’ Insurance | Checkatrade
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Your guide to building contractors’ insurance

Like any form of insurance, building contractors’ insurance can seem complex. Fortunately, it’s much easier to understand than you might think. Read on to learn more about building contractor insurance requirements and how to get the best deal for your business.

Insuring your building contractor business

Anyone working as a building contractor is likely familiar with the level of responsibility that comes with such a role.

  • Planning a project
  • Managing
  • Monitoring
  • Coordinating the entire construction phase

As you can see – there is a lot to consider!

And that’s before you even consider the responsibility you have to those who may come into contact with your work. Whether employees, clients, or other members of the public, you have a responsibility for their safety as well.

This is where building contractors’ insurance requirements come in. Designed to provide financial and reputational protection, with building contractors’ insurance, you can be sure you’re protected against any accidents.

Do I need building contractors’ insurance?

While not a legal requirement, it’s highly recommended that you acquire some form of contractors’ insurance for your business. This is both to provide your company with protection and to show your customers that you’re a responsible tradesperson.

If you’re working in construction, you’re no doubt acutely aware of the various risks associated with the industry.

The fatal injury rate for the construction sector is four times higher than other trade industries. Not to mention the near misses and costly accidents that frequently occur.

Therefore, like insurance for builders, you should aim to meet your building insurance requirements as soon as possible.

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Examples of why you might need contractor’s insurance

As we’ve just mentioned, getting contractors’ insurance is important if accidents at work happen and impact your business.

To put this in perspective, here are a few examples of where building contractors’ insurance would be important to have:

  • One of your team accidentally drops a brick from a height, damaging your customer’s car on the driveway below
  • A member of the public trips over an extension cable causing themselves an injury
  • One of your team falls from height causing themselves a serious injury
  • Your tools are stolen or damaged, bringing work to a grinding halt
  • Your business equipment fails you making it nearly impossible to operate

Naturally, these are only a few common examples. But as we’re sure you can imagine, there are any number of similar scenarios that could occur. All of which would be made worse without having the right building contractors’ insurance.

What insurance do building contractors need?

When it comes to building contractors’ insurance, there are a variety of insurance options you can choose from. All will be useful to have in one form or another, and it’s recommended you purchase each one if possible:

  • Employers’ liability insurance – to protect your team should they fall ill or suffer an injury as a result of working for you. Please note that this is a legal obligation for anyone with employees
  • Public liability insurance – to protect your business if a third party claims that your work has caused them to suffer a loss, damage, or injury
  • Professional indemnity insurance – to cover you should a claim be brought against you for professional negligence that’s caused loss or damage
  • Tools insurance – to safeguard your tools and equipment should they be damaged or stolen at work or in storage
  • Personal accident insurance – to protect you and your business should you suffer an accident that prevents you from working for an extended period of time

Once you’ve settled on the type of insurance you want, we also suggest speaking to an insurance broker. They’ll be able to collect all your insurance under one policy, meaning you’ll only have to make one monthly payment.

changes to building regs in 2022

How much does building contractors’ insurance cost?

As the type of insurance required by all businesses will be different, there’s no set price for building contractors’ insurance. Instead, the overall cost of your building contractors’ insurance will depend on a number of factors.

These could include any of the following:

  • The type of cover you need
  • The level of cover you need
  • The type of work you do
  • The amount of work you do
  • The location of your work
  • How many people you employ
  • Any previous claims made

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Save money on your contractors’ building insurance as a Checkatrade member

With that last point covered, you should now have no trouble finding the right contractors’ building insurance for your business. Of course, one way to guarantee a competitive rate on your contractors’ building insurance is to join Checkatrade.

No matter the insurance you need, all of our members can benefit from discounts on their trade insurance policies.

Not only that, but Checkatrade membership gets you more than a listing in the UK’s leading trade directory. You also get to enjoy exclusive member deals and discounts with our carefully selected partners.

This includes 20% off public liability insurance. This cover is tailor-made to your needs, and arranged in a simple and straightforward way. Simply log in to our Member’s Area to check the latest deals.

Get in touch with the Checkatrade team today to learn more about our membership perks. And don’t forget that we have more articles like this on our trade block. This includes pieces on how to start a building business and how to write a good building quote.

Labour-only subcontractor on a building site

Building contractors’ insurance FAQs

Do I need contractors’ business insurance?

As a contractor, it’s a given that you’ll need to work across a variety of different locations and projects. This means it’s important to get contractors business insurance for your work.

Doing so will protect you against financial problems should you be unable to work due to an accident. Ensuring that when you do return to a project, your business is still in good financial shape.

Is contractors’ building insurance mandatory?

As we’ve already mentioned, building contractors insurance is not a legal requirement, though it is highly recommended. You’ll be hard-pressed to find a reputable construction business to work with if you don’t have public liability insurance.

And if you want to become a Checkatrade member, then having public liability insurance is a necessity. Join us today and you could save 20% off your PLI too!

Do building contractors need professional indemnity insurance?

While certainly not as essential as other forms of insurance, it’s still recommended that you get professional indemnity insurance. This sort of cover will protect your reputation as a building contractor should a third party call your work into question.

Looking for the best rates on building contractors insurance?

Save 20% on PLI cover as a Checkatrade member

Join to save

Content disclaimer: This content has been created for general information purposes and should not be taken as formal advice. Read our full disclaimer here.

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