What is Builder’s Public Liability Insurance & what does it cover?

What is Builder’s Public Liability Insurance & what does it cover?


The Danger Zone

Carrying out construction work is not just dangerous to those directly involved in the job itself. While building sites have become better secured against accidents, through means like restricting public access, members of the public still risk getting injured. They might be struck by debris as they walk by a site or, in the case of bad weather, unsecured construction materials may blow away and hit them. These scenarios also risk damage to property—for instance, debris or tools could break windows or hit a vehicle.

Situations like these leave the builder in charge responsible, which can lead to their being faced with hefty compensation claims. For hard-working tradesmen like yourself, this would be the stuff of nightmares. But with Tradesman Saver’s public liability insurance, you can rest assured that we’ll take care of any resulting costs on your behalf.

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Why do builders need builder’s insurance?

In the scenarios described above, the victim may file a compensation claim against you. If you don’t have an insurer who can handle this on your behalf, you’ll face unplanned expenses, which could put you in serious financial trouble. Why risk this happening when you can take out builder’s public liability insurance? This gives you peace of mind that unforeseen circumstances won’t jeopardise your livelihood, and lets you focus on doing what you do best. Best of all, you don’t have to break the bank to buy builder’s insurance. Tradesman Saver is proud to provide affordable policies for both sole traders and limited companies. 

What does builder’s public liability insurance cover?

If your construction work puts third parties like pedestrians and bystanders at risk, or has the potential for their possessions to be harmed by your work activity or equipment, then a public liability policy has you covered. It offers compensation for any personal injuries and property damage caused by your construction work, as well as covering the legal costs involved. If you’re in need of something more specific, you can also add cover for any other trade activities you undertake, such as bricklayer’s insurance, electrician’s insurance, and plumber’s insurance. Check out our full range of covers, or use our online quote form to build your own, tailor-made insurance policy today.

What are the advantages of builders’ public liability insurance?

  • Protection against third party claims: Our policies ensure that you don’t face any unplanned expenses in the case of an incident or accident for which you were at fault.
  • Avoid the snowball effect of financial loss: Since the responsibility of paying out the compensation falls to the insurer, we cover any costs.
  • Improve client trust. Potential customers often consider insurance-approved builders to be more trustworthy, as this shows a level of maturity and responsibility.

How much is public liability insurance for builders?

Our builders public liability insurance costs as little as £59 a month—significantly cheaper than many of our of big-name competitors. That said, the final cost of your policy will be determined by various factors, including the amount of cover you need, what your business does, and your claims history.

What about builder’s employer’s liability?

Here at Tradesman Saver, we also offer employer’s liability insurance, which deals with any physical and emotional injuries sustained by your workers. Should you employ more than one member of staff, it’s a legal requirement, and offers your business protection from any claims your employees may make against you. Through employer’s liability, your insurer will cover you against any personal damage for which you are deemed legally responsible through negligence—such as employees falling from a faulty ladder, tripping over equipment, or injuring themselves with power tools. This doesn’t mean you can skip your duties and avoid giving workers protective equipment, however. Your employer’s liability insurance policy simply acts as an extra barrier in case the worse should happen, despite your cautious safety measures.

What about sub-contractors?

It depends on the type of subcontractor. Labour-only subcontractors should be treated as employees for employer’s liability purposes, so you’ll need to maintain cover for them. On the other hand, bona-fide subcontractors—other companies or professionals who you may use for certain parts of your work—don’t require employer’s liability insurance. They will need to have their own cover in place to protect themselves. For the financial security of your business, it is important that you confirm that this is the case.

*This indicative price is for £1m public and products liability, £250,000 legal expenses, £10,000 financial loss and £10,000 accidental death insurance cover for a sole trader. The price includes insurance premium tax and our admin charge. 22% of new customers paid less than £59 between 1st January 2019 and 31st August 2019. The actual price you pay will depend upon your specific business requirements and will be affected by your trade, your claims history and the optional covers you select which are all priced separately during the quote process. This website is intended for customers based in the UK and is therefore subject to the UK regulatory regime(s) © Copyright 2021 Tradesman Saver | Tradesman Saver and Henry Seymour & Co. are trading names of Barkdene Limited which is authorised and regulated by the Financial Conduct Authority (FRN 303965) for our insurance distribution and credit broking activities. Barkdene Limited is a credit broker not a lender. You can check this on the Financial Services register https://register.fca.org.uk/.
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