As a builder, you’ll know the importance of getting your numbers right – just look at the amount of tools you have which have some sort of measuring component to them. Precision is key as it can sometimes make the difference between whether a window fits or a wall stays up.
Likewise, numbers matter to your customers and they want to know that they’re getting value for money when they part with their hard-earned cash.
Getting your numbers right is therefore vital to the success of your construction company. One way to protect your company’s livelihood is to invest in builder’s insurance. It may be another business expense, but what you pay for insurance is mere pocket change compared to the tens of thousands of pounds you could be shelling out if you get hit with a costly claim for compensation.
How much you pay for builder’s can vary for a number of reasons including the level of cover you take out and which optional extras you choose to add to your policy.
There are a number of key components which you will need to include in any builder’s insurance policy.
Public liability insurance
Builders public liability insurance protects you for claims made against you or your company by a customer or member of the public. Claims can be for injury or illness or damage to a person’s properties. Public liability for builders is generally available from as little as £50 a year; a snip compared to the cost of fighting and potentially settling a claim.
Employer’s liability insurance
It is a legal requirement to have employer’s liability insurance if you have anyone working for and will protect you against claims made against you by an employee who has been injured or become ill as a result of working for you. It is in addition to public liability cover so that must be taken into account when comparing builder’s insurance quotes.
Depending on your requirements, you may need to take out cover for tools, plant and machinery. You may also consider buildings and contents insurance for your company offices. This cover will come at an additional cost, so you’ll need to work out what you need.
What affects the cost? Limits & excesses
Liability cover will have indemnity limits, that is the maximum amount an insurer will pay out for any single claim. Limits are usually set at £1 million, £2 million and £5 million. The higher your indemnity limit, the more your insurance premiums will cost.
All insurance policies will come with an excess, that is the amount you will have to pay towards any claim. You can adjust excesses, but they are generally set around £250. A higher excess means that you can save money on the cost of your builder’s insurance, but you will be required to pay out more should you make a claim.
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