Contracting & Construction Insurance

While not always legally required for sole traders, insurance for construction companies is widely considered essential for anyone working in the sector. With risks including working at height, handling tools and machinery, or operating on client premises, having tradesman insurance or contractors insurance can protect you from claims, financial loss and potential legal action. When it comes to motor, insurance is a legal requirement and employers’ liability is too, should you employ anyone (including volunteers and casual workers). 

Generic business insurance policies can contain gaps that leave construction businesses exposed. Specific construction insurance is designed to address the unique risks of building projects, property development, subcontracting and the use of specialist equipment, helping protect your business against incidents that general policies may not cover.

Construction insurance is designed to protect your business against the wide range of risks faced on and off site. Cover can often be tailored to reflect your trade, contract requirements and the nature of the work you undertake, helping ensure your insurance remains relevant as projects and responsibilities change. 

Typical insurance for construction companies can include protection for tools and plant (owned or hired-in), contract works and materials, ongoing projects, public liability, employers’ liability and personal accident cover. Where appropriate, policies can also look to include efficacy cover, helping protect you if a product or service fails to perform as intended. 

For individual tradespeople and small construction businesses, tradesman insurance offers practical, flexible protection. This often includes cover for tools and equipment in use, in transit or left securely in a vehicle overnight, insurance for work in progress if an insured event prevents you from completing a contract, public liability cover if a third party is injured or their property is damaged and employers’ liability insurance, where staff or labour-only subcontractors are engaged. 

Many contractors and trade associations, as well as potential customers, require proof of insurance for construction companies before commissioning a project so you may find that a lack of insurance could prevent you from securing work. Additionally, if you were to find yourself in a situation where someone makes a claim against you or you suffer a loss, you would be liable to settle any pay-out. Depending on the claim, this could leave you in substantial financial difficulty. 

PAYE employees and labour-only subcontractors can generally be included under an employers’ liability policy. Cover can be arranged per individual or based on wages and turnover for larger operations; it’s essential to declare all staff and subcontractors accurately when arranging your policy. 

Sub contractor insurance is important for protecting both your business and your subcontractors on construction projects. If you hire subcontractors, you need to consider whether they have their own contractor insurance or if your insurance covers them. 

Labour-only subcontractors may be included under your employers’ liability policy but bona fide subcontractors usually need their own sub contractors insurance for public liability, tools and professional risks. Ensuring all subcontractors are properly insured reduces the risk of gaps in construction business insurance and protects your business if an incident or claim occurs on site. 

Our team works with a wide range of trades, from general builders and electricians to specialist contractors and property developers. We have long-standing relationships with insurers and can look to arrange policies tailored to the specific needs of your trade.

Our head office is located in Malton, North Yorkshire, with a second office at Hesslewood Office Park, Hull.