Builders Insurance

Who Needs Builders Insurance?

If you’re:

• A self-employed builder
• Running a limited company in the construction sector
• Employing subcontractors or apprentices
• Working on-site (yours or someone else’s)
• Quoting for public sector or commercial jobs

you almost certainly need builders insurance. Many clients won’t even let you step onto site without seeing proof of cover, particularly public liability and employers’ liability.

Why Builders Insurance Matters

1. Accidents Happen

Falls from height. Slips on wet concrete. Dropped bricks. Misfiring nail guns. It doesn’t take much for a routine day to turn into a potential injury claim. And in construction, injury claims can run into the tens or hundreds of thousands.

2. Materials Go Missing

Tool theft is rampant. Vans get broken into. Cement and timber go walkabout. With the right cover in place, you’re not footing the bill.

3. Delays Cost Money

If a project is delayed because of fire, flood, theft, or vandalism, contract works insurance can protect your revenue.

4. Clients Can Be Difficult

A client might accuse you of poor workmanship. A structural fault months later might lead to a claim. Insurance doesn’t just pay out, it also gives you legal defence and advice if you’re facing allegations.

Essential Types of Insurance for Builders

Let’s break down each of the key components and explain what they actually cover, no jargon, just facts.

Public Liability Insurance

Covers you if a third party (client, passer-by, supplier) is injured or suffers property damage due to your work. For example:

• A brick falls and hits someone
• You damage a neighbour’s garden wall
• Wet floors cause a delivery driver to slip

Minimum cover level: £1 million
Typical range: £2m–£10m depending on contracts

This is often mandatory for working on large jobs or public sites.

Employers’ Liability Insurance

If you employ anyone, even apprentices, labour-only subcontractors, or part-time workers, this is a legal requirement under the Employers’ Liability (Compulsory Insurance) Act 1969.

It covers you if an employee is injured or becomes ill due to work, for example:

• A scaffolder falls due to poor PPE
• A labourer suffers long-term back problems from lifting

Minimum cover level: £5 million (legal requirement), but most policies offer £10m as standard.

Tools and Equipment Cover

Covers your tools whether they’re on-site, in your van, or locked in a container.

• Hand tools
• Power tools
• Specialist equipment

Some policies only cover theft from secured locations (e.g. locked vans overnight), read the small print carefully.

Contract Works Insurance

Also called Contractors All Risks Insurance. Covers materials, works in progress, and temporary buildings against fire, flood, theft, vandalism, and more.

• Protects you mid-project
• Often required by main contractors
• Can be extended to include own plant, hired-in plant, and employee tools

This is crucial if you’re the main contractor or responsible for the site.

Professional Indemnity Insurance

Not every builder needs this, but if you offer design, structural calculations, or even basic layout advice, you could be liable if that advice causes a financial loss.

This is especially important for:

• Design & build firms
• Builders who work closely with architects or surveyors
• Renovation specialists

Commercial Vehicle Insurance

If you use a van for work, you need a policy that covers business use, not just social/domestic. You might also need:

• Any driver van policies (if multiple staff use the vehicle)
• Tool cover within the van
• Breakdown and courtesy van cover

We also offer comparison for Van Insurance for Builders via our fleet insurance page if you need a standalone quote.

Optional Extras You Might Need

Depending on your setup, the following covers could also be useful:

• Hired-In Plant Insurance – covers machinery you hire (e.g. diggers, dumpers)
• Own Plant Cover – for plant you own outright
• Business Interruption – helps if an insured event stops you working and earning
• Legal Expenses – for contract disputes, tax investigations, and employment law claims
• Personal Accident – covers income if you’re injured and can’t work

Self-Employed Builders vs Limited Companies: What’s the Difference?

The type of policy you need doesn’t just depend on your work, it also depends on your business structure.

Sole traders may have fewer obligations (e.g. no employers’ liability if they work entirely alone) but still need cover for tools, public liability, and contract works.

Limited companies, especially those working with subcontractors or in partnership with other trades, often need more comprehensive policies. If your firm is quoting for local authority or housing association work, specific levels of cover will usually be a requirement.

How Much Does Builders Insurance Cost?

Premiums vary depending on:

• Your turnover and business size
• The types of work you do (e.g. general build vs roofing or groundworks)
• Where you operate
• Whether you employ staff
• Your claims history
• Tool values and plant hire

Example premiums:

• Sole trader with £2m public liability and tools: from £120/year
• Limited company with 5 staff and contract works cover: from £800/year

Speak to our specialist partner via the “Get Quotes” button on this page to make sure you’re getting what you need and not paying for what you don’t.

Common Mistakes to Avoid

1. Thinking you’re covered under someone else’s policy
   If you’re a subcontractor, don’t assume the main contractor’s policy covers you.
2. Choosing the cheapest policy without reading the excess
   A £500 premium with a £5,000 excess is no good if you can’t afford the payout.
3. Failing to declare all business activities
   If you do roofing, groundwork, and general build, make sure that’s all on the policy.
4. Leaving tools in the van overnight without cover
   Some insurers exclude this unless the van is in a locked compound.
5. Not updating your insurer when you hire staff
   Hiring someone without updating your employers’ liability cover could invalidate the policy.

Do I Need Insurance if I’m Just a Labourer?

Even if you’re hired by someone else, you might still be classed as self-employed or a labour-only subcontractor. If that’s the case, you’re responsible for your own public liability cover.

If you’re unsure, ask the main contractor whether they’re providing cover and get it in writing.

How to Get Builders Insurance Quotes

You can access specialist quotes quickly by submitting your details through to our partners. Just enter:

• What type of building work you do
• Whether you have staff
• The value of your tools
• Estimated annual turnover

They have access to schemes and other relationships that are not available via online only tools. Speaking to a specialist also means you can benefit from their expert knowledge.

Compare Builders Insurance Quotes Today

Whether you’re laying bricks, converting lofts, managing extensions, or tackling entire new builds, we’ll help you find cover that protects your business properly. Click the “Get Quotes” button to get started.