What is Contractors’ Insurance?
Contractors’ Insurance is an insurance policy made up of a variety of types of cover to protect contractors from the various risks they’re exposed to in the line of their work.
Sometimes referred to as contracting insurance, this policy can be tailored to your specific needs, depending on the size and scale of the project you’re contracted to work on, and whether you need to cover subcontractors’ liability too.
So, what insurances should a building contractor have?
If you have employees within your firm, you’re legally required to hold employers’ liability insurance. If an employee is injured or falls ill during the course of their work for you, your employers’ liability insurance will cover compensation and legal costs.
But what about Insurance for subcontractors?
There are two types of subcontractor: labour-only subcontractors and bona-fide subcontractors.
- A labour-only subcontractor typically works under your direction, using your tools and equipment, and will need to be covered by your subcontractor liability insurance.
- A bona-fide subcontractor usually works under their own instruction, setting their own work schedule and brings their own tools and equipment to complete the job. Usually your employers’ liability insurance for subcontractors will not need to include the bona-fide subcontractors you employ.
It’s a good idea to check bona-fide subcontractors hold their own subcontractor public liability insurance before allowing them on-site.
Public liability insurance for building contractors is not a legal requirement, but it’s usually a contractual requirement for clients in the construction industry.
When contracted by a client to undertake a building project on their behalf, you shoulder the risk of the many hazards a construction site presents.
Without contractors’ liability insurance in place, you’re personally responsible for the cost of any compensation claims and legal fees if a third-party claims against you. This could be for an injury, damage to their property, or financial loss because of your company’s negligence.
Professional indemnity insurance for building contractors will protect your business if your professional advice or services mean a third-party suffers loss or damages.
This insurance needs to adequately cover the level of risk your business is exposed to. We’ll make sure this policy is sufficient for your needs.
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Contractors’ Insurance optional extras
As an insurance broker we’ll build you a tailored policy, so you only buy the cover you need.
Some of the optional extras we can arrange, include*:
Contract Works Insurance
This will make sure your contract works are reinstated or repaired should they become damaged during the construction project.
Personal accident insurance covers the injury or death of anyone on your policy, whether at work or elsewhere. It covers loss of earnings and medical costs.
If your contracting business was faced with legal costs, for example, an employee dispute, legal expense insurance will help to cover the costs involved.
*Limitations and exclusions apply to all these add ons
Who needs Contractors’ Insurance?
If you work as a contractor in the construction industry, you’ll need building contractors’ insurance. Some work you undertake will insist in the contract that you have appropriate insurance to carry out the job.
You may be a subcontractor, enlisted to complete a project and you may need contractors insurance for this role. It’s important you understand subcontractors insurance requirements to make sure your business is fully protected from all risks.
Why use GoSkippy?
We are an insurance broker set up to bring you first class insurance at the most competitive prices we can find.
We search a range of market-leading insurers to find you the best deal we can.