Builder's insurance
To help develop this article, click 'Edit this article' above.
Contents |
[edit] Introduction
When it comes to hiring a builder for a project, it is important to consider a wide range of factors. Whether appointing a sole trader, or a big building firm to take on a larger project, knowing the background of the builder is important. In particular it is crucial to ensure they have the right type of insurance for the work to be carried out.
[edit] High-risk industry
Construction is a high-risk industry, accounting for 20.9% of work-related fatalities in the EU-28 in 2014. As a result, it is imperative that builders have the most appropriate types and levels of insurance, and the most up-to-date policies to incorporate every aspect of the job that they are carrying out. If an accident occurs on a property and the builder does not have the most appropriate insurance, then the client may find themselves liable for any damages.
[edit] Protecting the public
Public liability insurance is generally required to provide cover against personal injury or death, or loss or damage to property of third parties such as members of the public or independent sub-contractors.
If a builder does not have the most appropriate public liability insurance, and an accident occurs, the client may find they are held accountable. The Citizens Advice Bureau advises that all homeowners ensure that any builder they are looking to hire has appropriate public liability insurance. This means asking to see certificates proving that insurance is in place.
[edit] Protecting employees
Companies that have employees must have employer’s liability insurance, by law. This can protect the employees working for the company from any injuries or accidents that may occur due to the high risk environment.
[edit] Professional services
Providers of professional services, such as design, should have professional indemnity insurance (PI insurance). Indeed many clients will not enter into a contractual relationship with a supplier unless they can demonstrate that they hold professional indemnity insurance to a specified minimum level.
[edit] Polices
There are a number of different insurance options for builders to choose from, including all-risk cover, contract works cover, goods in transit cover, tools cover, plant cover and more. Knowing that a builder is covered can protect clients in the long run, as well as the people that may be affected by the work they are carrying out.
For more information about types of insurance, see: Insurance for building design and construction.
[edit] Related articles on Designing Buildings Wiki
- Bondsman
- Contractors' all-risk insurance.
- Employer's liability insurance.
- Future of construction insurance.
- Hiring an architect as a domestic client.
- How to find a builder.
- Insurance.
- JCT Clause 6.5.1 Insurance.
- Legal indemnity insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
Featured articles and news
Biodiversity net gain with related updates and terms
Only 0.5% of applications subject to BNG in the context significant proposed changes to planning.
As political power has shifted from blue to red
Has planning now moved from brown to green?
The role of construction in tackling the biodiversity crisis
New CIOB Nature of Building digital series available now.
The Nature Towns and Cities initiative
Grants of up to 1 million for local councils and partners.
The continued ISG fall out October updates
Where to look for answers to frequently asked questions.
Building safety remediation programme for Wales
With 2024 October progress updates.
In major support package for small businesses.
Conservation and transformation
Reading Ruskin’s cultural heritage. Book review.
Renovating Union Chain Bridge.
AI tools for planning, design, construction and management
A long, continually expanding list, any more to add?
Robots in the construction industry
From cultural characterisations to construction sites.
Empowering construction with AI integration
New horizons with a human touch.
Key AI related terms to be aware of
With explanations from the UK government.
A Better Hiring Toolkit for construction
Tooling up to hire under best practice standards in the sector.
Recharging Electrical Skills in Wales
Step by step collaborative solutions.