What does Construction Liability Insurance cover?

What does Construction Liability Insurance cover?


Let’s face it, you don’t need some slapstick comedy from the 1970s to show you how hazardous a building site can be. In fact, people don’t always conveniently bend down when somebody else turns around with a solid piece of 4×4 on their shoulder.

Anyone who has worked on a site will know that there are risks at every turn and if you run a construction business, it’s imperative that you have liability insurance in place.

Just as any builder won’t tackle a job without the proper tools in his bag, you shouldn’t set foot on a site with the proper insurance cover.

After all, you wouldn’t start building a house before laying the right foundations first. Liability is a vital component in making your construction company stand form for years to come.

So what does it cover? Well, there are types of construction liability insurance which you need to know about when you are purchasing insurance.

Public liability insurance

Any busy building site will have a lot going on, which is a great sign that business is booming. But with a lot of activity comes a lot of risks. Expensive and powerful machinery, tools, scaffolding, there’s no end to the ways in which an accident may occur. If something does happen, you’ll want to have the proper protection in place. Hard hats and hi-vis jackets are useful, but they aren’t going to be much use if you get slapped with a costly claim.

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If someone is injured, falls ill or has their property damaged as a result of work carried out by your construction firm, they can bring a case against. Public liability will help you contest that claim and cover the cost of any compensation you are ordered to pay the claimant. Even if they claim is ultimately unsuccessful, public liability cover will help with legal expenses of defending yourself.

Employer’s liability insurance

Very few construction company operate as a one-man-band. Considering the size of the jobs involved, it’s highly likely you will have people working for you. If you have employees, you are required by law to have employer’s liability insurance. This is will protect you against claims made by your employees should they be injured or become ill as a result of carrying out their duties. In addition to having employer’s liability cover, you must also display a valid certificate of insurance at your place of business. Failure to have employer’s liability insurance can result in daily fines of up to £2,500 while you can be fined £1,000 if you don’t have a certificate displayed.

*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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