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
Walter Segal: self-built architect
A definitive book on a pioneer of green architecture.
Funding for heritage on the high street
Using heritage as a catalyst for reviving historic centres.
Commonwealth Heads of Government Meeting update.
Declaration prioritising sustainable urbanisation adopted.
A small hidden, often distant but key building component.
Some brief words about the actuator.
CIAT Chief Executive steps down.
After 34 years at the Institute.
Volunteer opportunity launched by the ICE
To support the next generation of engineers.
Provisional findings show illegal cartels in the industry.
CIAT reporting from the Competition and Markets Authority.
Making sustainable construction number one priority.
The future of construction report.
Interview with ECA CEO.
Many provisions came into force on June 28, 2022.
With room to expand.
An information packed session at the BSRIA conference.
Refurbishment, Energy Efficiency, Indoor air and process.
Considering building acoustics with the AT Journal.
Why building acoustic considerations must be non-negotiable.
Create a profile, write informed product articles and share.
Aluminium Composite Panels (ACP) is one example.
Top 50 Women in engineering 2022.
Inventors and innovators at ICE.
Life, death and art at the Stuart court. Book review.
Real estate, place adaptation and innovation.
Review and comment on the revised draft before July 11.
We are indeed now 10 years old, so go on and be bold !
Write about something you know, help us build and grow !
IHBC's 25th anniversary 2022 Aberdeen School.
A blended event and triumphant return.
New Construction Leadership Council Co-Chair selected.
Mark Reynolds succeeds Andy Mitchell as Co-Chair of CLC
Designing Buildings is 10 years old.
Types of work to existing buildings.
From alteration to deconstruction on DB.