Business insurance for self employed builders and building contractors is easily available at an affordable cost when you consider the risks involved with the building trade. Builders are active all day, every day working on customers’ premises, exposing themselves and the business to significant risk of injury or damage to customers and others.
The risks to a builder are as broad as the business itself, with risks being present from the general construction risks to more specialist problems associated with ancillary work such as scaffolding, roofing and plumbing. where water damage and use of heat that can cause catastrophic loss or damage.
Public Liability Insurance
The basic builders public liability insurance policy protects the policyholder against claims made against them for their legal liability for personal injury or property damage sustained by third parties, the public generally, that arises out of the activities of the policyholder.
Employers Liability Insurance
Any builder that employs people, whether full time or part time, clerical or manual, is legally required to have employers’ liability insurance. Employers’ liability insurance covers the employers’ legal liability for death, injury or disease to employees arising out of the course of the business.
Whilst the statutory minimum limit of indemnity for employers’ liability insurance is £5,000,000, insurers offer a standard limit of indemnity of £10,000,000. There are exemptions from the statutory requirement to have employers’ liability insurance, which includes if the employees are certain specified close family members.
The close family members’ exemption does not apply if the business is a limited company. However, the exemption does not preclude a close family member from pursuing a claim as an employee in the event of injury at work, so it may be in the best interests of the business not to take advantage of the exemption and purchase employers’ liability insurance for close family members. If the business is a partnership, employers’ liability insurance is not required for the partners and they will not be covered as employees unless the insurer has agreed to include cover for the partners.
How much does builders liability insurance cost?
The cost of liability insurance for self employed builders is dependent upon a number of factors, but may great deals are available on-line for even some of the more complex risks. The price you will pay will depend upon the sort of work you are undertaking as a building contractor. For instance someone involved in only repair and renovation of private houses will pay a lower premium that those doing jobs on commercial premises at height. The cost increases also with the number of insured persons, and the covers/limits required.
Policy Cover and Restrictions
Whilst builders insurance policies often look similar, and in fact the basic underlying policy wordings have very similar intent, the end products can be very different.
Key issues to look out for any restrictions to working practices such as location, height, depth and heat work restrictions or exclusions, and cover restrictions such as restricted limits of indemnity and excesses. These restrictions and exclusions can be included by specific endorsements or contained in the main policy wording.
As the protection given by the insurance may end up being key to the survival of a business, it worth spending time looking closely at a range of insurance offerings to ensure the most appropriate product is purchased, which may or may not be the cheapest.
How to buy insurance for self employed builders?
WE provide an instant on-line quote and cover solution for builders liability insurance, where you can compare prices and cover from a range of leading insurance companies, alternatively you can call one of our broker team who will be more than happy to discuss your requirements and help you to obtain the best deal for you on your business insurance.
If you have any queries regarding your policy cover you can call us on the number above to get an answer to your questions and any help you may need in arranging your builders liability insurance.