Builders Insurance protects self-employed builders, small construction firms and tradespeople from any potential liabilities that they or their employees might face during the course of daily building work.
The typical package will include public liability insurance to cover against all claims made by clients or the public against the builder.
Additional optional coverages include Employers Liability, which is required if the builder has full-time employees and bona-fide contractors, tools insurance, which covers all builders tools on and off site, and Goods In Transit, which covers damage to goods or materials while transiting to and from a construction site.
As standard coverage, most policies include Products Liability. This covers any defective materials the builder may have supplied.
Because of the many accidents and losses that could occur at a builder’s workplace, all builders require public liability insurance.
All sorts of risks exist at ground level, for which the builder can be held responsible.
There are real risks associated with building activities, including pollution, hazards, and injuries to clients and workers.
All builders insurance officers ask about what type of work you do, and especially if you work at height.
Members of the public and other workers on site can be seriously injured or killed by scaffolding, timber, bricks or roof tiles, or paint pots that fall from high places.
A typical builders policy or liability package classifies the type of risk as a series of different types. Each type has its own policy clauses, restrictions and limitations. The type of property that the builder is usually working on, such as private homes or commercial buildings, further divides the risk.
Underwriters view builders who only work on one-storey extensions and do interior alterations and groundwork to private buildings and houses as the lowest risk. This policy is the most affordable and covers only the risks on site for clients.
For builders who are sole traders, small-sized building companies or sole traders and work on private residences or new constructions, a second class of builders’ insurance is available. These policies have a maximum height restriction of two stories or ten meters to allow for taller townhouses. This type of insurance is the most common and popular for small builders. It covers all sub-contractors and firms that work on new housing estates.
The commercial builders class includes small to medium-sized construction firms that focus primarily on commercial property. These include offices, shops and pubs, hotels and government buildings.
These companies usually have public liability insurance that is set at ten millions per event. This is required by contract conditions for the type of work. The cost of working in hazardous areas, such as industrial plants or at high altitudes, can make this coverage more expensive, but is often necessary.
The risk of fire from heat exposure to a building is much higher if the builder uses heat, such as when he blows on pipework or with a torch. In this case, premiums will increase and the quotes for the work will go up. Higher levels of heat work liability may be required by insurance companies.
Apart from any statutory regulations or contractual commitments, any builder who employs labourers, ground workers bricklayers, carpenters roofers, roofers, glaziers plumbers or painters and other decorators would be foolish to not have employers liability insurance coverage.
Building sites are second in risk to workers than farms. Workers can become seriously injured or maimed, and they will likely blame their employer.
Builders should also make sure to insure their tools against theft, loss, or damage. The average builders insurance premium will cover the cost of replacing a cement mixer. The majority of policies allow the proposer the ability to determine the amount of indemnity coverage for the tool’s value. In many cases, the insurance company will reduce the amount that is paid for the loss of tools.
As a commercial insurance company, all-risk builders liability and tools insurance policies are often very affordable. Builders should shop around for coverage. The Internet offers quotes from top insurance companies and underwriters.
