When you are a general contractor in the UK, there are certain insurance requirements that you must meet. If you don’t have the right business insurance coverage, you could find yourself in a lot of trouble if something goes wrong on the job site.
We will look at the different types of insurance that are required for general contractors, and we will also provide some tips on how to find the best insurance cover for your business.
Main Types of Insurance for General Contractors
There are four main types of business insurance that general contractors in the UK are usually required to have:
- Public liability insurance
- Employers liability insurance
- Contract works insurance
- Professional indemnity insurance
Public liability insurance
Public liability insurance is a type of insurance that protects businesses from claims made by members of the public who have been injured or had their property damaged as a result of the business’s negligence. If you are found to be at fault for an accident that has occurred, your public liability insurance will cover the costs of any compensation that you are ordered to pay. It will also cover the costs of any legal fees that you incur as a result of defending yourself against a claim.
As a general contractor, you will frequently be working on other people’s property. This could be anything from fitting a new kitchen to carrying out repairs on someone’s home. If you were to damage someone’s property while working on it, or if somebody was injured as a result of your work, they could make a claim against you. If this happened and you did not have public liability insurance, you would have to pay any compensation and legal fees yourself, which could prove to be very costly.
In addition, many clients will only work with contractors who have public liability insurance in place. This is because it provides them with peace of mind knowing that they will be protected against any claims that may arise as a result of your work.
Employers liability insurance
If you’re a general contractor in the United Kingdom, you are required by law to have Employers liability insurance. This type of insurance protects you and your employees in the event that someone is injured or becomes ill as a result of their work.
Employer’s liability insurance is a type of insurance that protects employers against claims made by employees who are injured or become ill because of their work. This type of insurance is required by law in the UK, and it can provide protection for both the employer and the employee.
How does Employer’s liability insurance work? If an employee is injured or becomes ill as a result of their work, they may make a claim against their employer. If the employer is found to be liable, they may be required to pay damages to the employee. Employer’s liability insurance can provide protection for the employer in these situations, by covering the cost of damages that may be awarded to the employee.
As an employer, you have a duty of care to your employees. This means that you are responsible for ensuring that your employees are safe while they are working. If an employee is injured or becomes ill as a result of their work, and you are found to be liable, you could be required to pay damages to the employee. Employers liability insurance can protect you from having to pay these damages yourself, by providing cover for them.
Contract works insurance
Contract works insurance is an important type of insurance for general contractors. This type of insurance protects your business from financial loss if something goes wrong with a construction project. If you are a general contractor in the UK, it is important to have this type of insurance in place to protect your business.
This type of insurance can cover things like the cost of repairs, replacement materials and even the cost of delays. If you are a general contractor in the UK, it is important to have this type of insurance in place to protect your business.
As a general contractor, you are responsible for the safety and quality of the work that you do. If something goes wrong with a construction project, it could cost your business a lot of money. Contract works insurance can help to protect your business from financial loss if something goes wrong.
Contract works insurance can cover a variety of things, including the cost of repairs, replacement materials, and even the cost of delays. This type of insurance can help to protect your business from financial loss if something goes wrong with a construction project.
In conclusion, contract works insurance is an important type of insurance for general contractors in the United Kingdom. This type of insurance protects your business from financial loss if something goes wrong with a construction project. If you are a general contractor in the UK, it is important to have this type of insurance in place to protect your business.
Professional indemnity insurance
If you’re a general contractor in the United Kingdom, you’re legally required to have Professional indemnity insurance (PII). That’s because, as a contractor, you provide advice or services to clients. And if something you do ends up costing your client money, they could sue you for damages.
Professional indemnity insurance can protect you from having to foot the bill for any legal fees or compensation payments that might come as a result of a lawsuit.
Professional indemnity insurance is a type of liability insurance that helps protect businesses from the financial losses that can come as a result of mistakes or errors made by employees. It can also help cover the costs of legal action taken against a business by disgruntled clients.
Professional indemnity insurance can help protect contractors in the UK from having to pay out-of-pocket for any legal fees or compensation payments that might be awarded as a result of a lawsuit. In some cases, PII will also cover the cost of settling a lawsuit out of court.
It’s important to note that PII only covers negligence claims made against a business—not intentional acts of malice or criminal damage. That’s why PII is sometimes called ‘negligence insurance’.
As mentioned earlier, all general contractors in the UK are required by law to have PII in place before they can start working with clients. That’s because there’s always a risk that something could go wrong during a project and end up costing the client money. If that happens and the client sues the contractor, PII can help cover the cost of any legal fees or compensation payments that might be awarded as part of the lawsuit.
PII can also help contractors win new business by giving potential clients peace of mind that they’re working with a reputable company that has its affairs in order. After all, no one wants to hire a contractor who doesn’t have PII in place — the risks are just too high.
It’s therefore important for all general contractors in the UK to have PII in place before they start working with clients because it can help cover the cost of any legal fees or compensation payments that might be awarded as part of a lawsuit resulting from negligence on your part.
These four types of insurance can sometimes be combined into one policy.
Other Types of Construction Insurance
There are also numerous other types of construction industry insurance, however not all of these will always be required by general contractors. Other construction insurance cover can include:
- Contract Performance Bonds
- Product Guarantee or Product Liability Insurance
- Directors and Officers Liability
- Legal Expenses and Employment Law Protection
- Motor Fleet Insurance
- Property Insurance – offices/yard
- Right of Light
- Restrictive Covenant Insurance
- Absence of Easement Insurance
- Building Warranties
Your unique circumstances as a general contractor will determine which, if any, of these types of construction insurance you will need.
As a general contractor in the UK, it is important to make sure that you have the proper insurance policies in place. By understanding the different types of contractor insurance that are available and choosing wisely, you can help ensure that you and your business are properly protected against potential risks.
But how do you know which insurance is right for you? The answer depends on a number of factors, including the type of work you do, the size of your business, and the risks involved in your work.
If you’re not sure whether you need any of these additional types of insurances, talk to an experienced broker like Construction Insure, who can advise you in relation to your specific business requirements.
Finding the Best Cover for Your Business
You know that you will need to have at least some form of insurance as a building contractor. Not only is it a legal requirement in some cases, but it can also protect you from financial losses if something goes wrong with your work. But how do you go about finding the best contractor insurance cover for your business?
- First, consider what type of work you will be doing. If you are working on smaller projects, you may not need as much coverage as someone who is working on larger projects.
- Second, consider what type of risks you are exposed to. If you are working with dangerous materials or in a dangerous environment, you will need more risk insurance coverage than someone who is working in a safer environment.
- Third, consider how much coverage you need. You don’t want to pay for more coverage than you need, but you also don’t want to be under-insured and have to pay out of pocket for damages or injuries.
- Finally, consult with an experienced insurance broker like Construction Insure to get a variety of insurance company quotes. Make sure to compare like with like and get insurance policy quotes for the same type and amount of coverage before making your final decision.
At Construction Insure, we have a large amount of experience and knowledge in the contractors insurance arena and specialise in insurance policies for the construction industry.
We are able to advise you on which building contractors insurance you need for your business and provide insurance cover quotes at competitive prices and with the best possible insurance policy wordings.
Why not give us a call today to discuss your business insurance requirements?