Builders Insurance from £9.50/month

Builders usually need public liability, employers' liability where legally required, contract works and tools or plant cover. Design responsibility may also call for professional indemnity. For extensions and refurbishments, establish who insures the existing building: a policy covering new works does not automatically cover the house around them.

Cover this trade usually needs

Cover	Why it matters	Typical limit
Public liability	Injury to visitors or neighbours, or damage to property outside the insured works	Match the written client or main-contractor requirement
Employers' liability	Employee injury allegations, including work by people whose employment status needs checking	At least £5m where compulsory insurance applies
Contract works	Physical damage to unfinished works and insured materials during the project	Full project value, including agreed variations
Owned and hired-in plant	Equipment damage and contractual responsibility to the hire company	Replacement values and hire-agreement obligations
Professional indemnity	Allegations arising from an insured design, specification or professional advice service	Assess the design appointment and potential loss

Key risks

• Opening an existing roof leaves an occupied home exposed to rain before the new structure is complete.
• Excavation or underpinning affects neighbouring foundations, even where responsibility for negligence is disputed.
• Materials paid for by the client are stolen before installation or while stored away from the site.
• A subcontractor's work creates a claim against the principal contractor, while their own insurance has expired.
• An amendment to the drawings expands design responsibility beyond the activities declared to the insurer.

Regulations and licences

• CDM 2015 duties apply to contractors on domestic as well as commercial construction work in Great Britain.
• A construction phase plan must be in place before construction starts; the responsible dutyholder depends on whether there is one contractor or several.
• Work at height and asbestos risks require appropriate assessment and controls; insurance is not a substitute for safe methods.

What we check before quoting

• We ask whether you undertake new builds, occupied refurbishments, extensions, structural alterations or demolition.
• We check the largest project, duration and value after foreseeable variations.
• We ask who insures the existing structure and whether the contract requires joint names or non-negligence cover.
• We review excavation depth, working height, hot work and any asbestos involvement.
• We clarify labour-only and bona fide subcontractor arrangements, design duties and plant hire terms.

Gaps we see most often

• Treating public liability as insurance for repairing defective workmanship itself.
• Assuming contract works includes damage to the existing building without an agreed extension.
• Buying tools cover but omitting hired-in plant liability and continuing hire charges.
• Leaving practical-completion, handover or defects-period responsibilities unchecked.

Limits clients and contracts usually ask for

• Liability limits should satisfy the specific building contract rather than an assumed industry minimum.
• Employers' liability must be at least £5m where the legal requirement applies.
• Contract works should reflect the completed project value, not just the labour element.

Occupied refurbishment or new build?

• For an occupied home, confirm the homeowner's insurer knows about the works and identify responsibility for the original structure.
• For a new build, check materials, temporary buildings, off-site storage and the period before handover.
• For either project, read the insurance clauses before agreeing to obligations your policy may not meet.

Key facts and sources

• HSE states that contractors must plan, manage and monitor work under their control, and that a construction phase plan is needed before construction starts. HSE — Contractors: roles and responsibilities

Common questions

Does builders insurance cover the existing house during an extension?

Not automatically. Contract works may cover the new extension but exclude the original house. Agree responsibility with the client and check the existing-building wording before work starts.

Is public liability the same as contract works insurance?

No. Public liability concerns insured liability to third parties. Contract works concerns damage to the insured works and materials; the two respond to different losses and have different exclusions.

Are subcontractors covered by my builders policy?

That depends on their role and the policy definition. We check labour-only and bona fide subcontractors separately, including their insurance and any conditions imposed on you.

Will insurance pay to correct a defective wall or roof?

Do not assume so. The cost of correcting faulty work itself may be excluded even where resulting damage is insured. Liability, contract works and any defects or warranty cover must be checked separately.

Do domestic builders need a construction phase plan?

Yes. HSE states that every construction project must have a construction phase plan before construction starts. On a single-contractor project, the contractor draws it up; with multiple contractors, this is the principal contractor's responsibility.