Construction and Builders’ Insurance for Small Businesses
Running a business brings a lot of risks and responsibilities, so getting the right insurance cover is essential. For building companies especially, even with the most rigorous standards, there are particular hazards that need to be accounted for. Because of the physical nature of construction work, builders’ insurance is important to guard against compensation claims for damage or injury.
Aon can arrange construction insurance and you can choose to include a range of customised, flexible packages of insurance designed for small businesses in the building and construction industry. It includes a core cover of Public Liability.
You can combine this with cover for Tools, Business Contents such as stock and equipment, Plant and Contract Works. If you have employees, it is also often a legal requirement to have Employers Liability. This can also be added to your package to cover injury or illness to employees sustained whilst working for you.
Even without employees, you may need builders’ public liability insurance for the self-employed to cover risks of injury or property damage to the public. It's also a great idea to think about cover for your tools and equipment. You can even look into contract insurance in case a project runs into unexpected problems.
What does Construction and Builders’ Insurance Cover?
Why do builders need insurance?
There are risks in running any business. These may include accidents, theft and damage, as well as solicitor's fees in the event of legal action. Of course, we all hope the worst doesn't happen, but if it does, it's important to be able to recover costs. The right insurance cover can help you to continue running your business smoothly, even if mishaps do occur.
In construction, there are extra risks because of the inherent dangers of the work. That means you may need your builders’ insurance to cover injury to your employees. Employers’ liability insurance is a legal requirement for most businesses if you have employees. Furthermore, because a lot of construction work is public-facing, public liability insurance is important in case of injury to third parties, such as members of the public.
What does builders’ insurance cover?
Your insurance cover arranged by Aon can be customised to your needs and the nature of your business. There are some basic essentials, though. Builders’ public liability insurance usually covers you for third party claims for injury or property damage.
Employers’ liability insurance can help to protect your business in the event of employees claiming compensation for injuries on the job, and it's a legal requirement for most employers.
It's also worth considering some more specific options for construction work, such as tool or materials cover. If you use hired equipment, you should also consider cover for this in case of damage or loss.
Is tradesman insurance the same as public liability insurance?
With Tradesperson insurance you can build a package of covers that can help to cover a range of risks. It includes a core cover of Public liability. You can combine this with covers such as Tools, Business contents and Employers’ Liability.
Because building work is encountered by third parties, you should consider including builders’ public liability insurance in your cover. This will help to protect you should anyone outside your business be hurt or suffer property damage. Compensation claims often go to court and, without adequate insurance, could incur seriously disruptive costs.
You may also need cover for aspects not covered by public liability. In the building and construction industry, there are particular risks to workers' safety on site. Building work also involves a lot of tools and machinery, some of it hired, which may be lost or damaged. It’s vital to consider having adequate insurance cover for these cases too.
Is builders’ insurance a legal requirement?
Some aspects of builders’ insurance are required by law. If you have employees, it is often a legal requirement to have employers’ liability. Employees in this context can mean part-time or temporary staff as well as apprentices or volunteers. Operating without this cover can result in serious fines.
If you’re self-employed with no staff, you may still need employers’ liability if you employ certain types of sub-contractors.