What Does Builders’ Insurance Cover?
Builders’ insurance is crucial to any builder’s line of work and should be their first consideration when undertaking a project. A suitable policy will shield against a range of potential risks and liabilities during the construction process, providing protection and peace of mind both to the builders themselves as well as their clients. Our experts here at Alan & Thomas are exploring the different types of coverage that can be included within a builders’ insurance policy and highlighting the advantages of each.
Builders Public Liability Insurance
Builders’ public liability insurance – often known more simply as builders’ liability insurance – is one of the most essential components of an insurance policy that builders should take out. This type of coverage protects against third-party claims for injury or property damage that occurs as a result of any construction activities.
No matter what safety measures we have in place, there’s always a possibility of accidents happening on a construction site. Should this happen and a member of the public is injured, or their belongings are damaged, the builder could be held liable for the financial repercussions. In such an instance, builders’ public liability insurance ensures the builder is safeguarded against the potentially substantial costs of legal claims and compensation. This can include medical expenses, property repair costs, and legal fees, which can otherwise be financially crippling to the builder’s business.
Employer’s Liability Insurance
If a builder or their business employs any staff, they’re legally required to include employer’s liability insurance within their builder's insurance policy. This covers any claims made by employees who suffer injury or illness in the course of their employment. Even aside from the legal necessities, this type of cover is particularly important for hazardous working environments such as construction sites. Employer’s liability insurance protects the builder and their business from lawsuits and compensation claims made by employees, ensuring they’re able to meet their legal obligations without suffering severe financial strain.
Builders’ Risk Insurance
Builder’s risk insurance is designed to protect ongoing construction projects from a wide variety of risks and perils. These risks can include fire, storm damage, theft, vandalism, and accidental damage. This can provide invaluable protection for construction projects, which are often vulnerable to unforeseen events, as any damage to the works can result in costly delays and additional expenses.
With builders’ risk insurance, the builder is shielded from the financial burden of repairing or redoing the construction work. This type of coverage can be a lifeline, especially for smaller or self-employed builders, allowing them to complete the project without suffering devastating financial losses.
Building Guarantees And Warranties
A guarantee or warranty on any construction project will provide assurance to the client that the completed work will meet certain quality standards and be free of defects. These types of guarantees can be offered by the builder or in some instances may be required by building regulations depending on the type of project.
By offering guarantees and warranties, a builder is able to demonstrate confidence in their workmanship. This can significantly enhance the builder’s reputation and help to attract more clients. However, if a defect or issue does arise, the builder will then be liable for rectifying the problem at no additional cost to the client. A Builders’ insurance policy that includes guarantees and warranties will offer protection against these potential costs should they arise.
Builders’ Insurance From Alan & Thomas
Builders’ insurance is a comprehensive and vital protection for construction professionals and their clients alike. Whether it’s builders’ liability insurance, risk insurance, or coverage for guarantees and warranties, each type of cover plays a crucial role in mitigating the risks and liabilities associated with construction.
At Alan & Thomas, we offer specialist builders’ insurance to ensure every aspect of your work is protected. We’re a chartered insurance broker who works with a larger number of insurance providers around the UK, enabling us to find you appropriate coverage no matter your requirements.
Are you interested in learning more about our builders’ insurance policies? Please get in touch and we’ll be happy to tailor unique coverage to your needs. We’re highly experienced in providing bespoke cover to suit all requirements and will take our time to understand your business before finding you comprehensive protection. Speak with us today by calling 01202 745900 or by emailing info@alan-thomas.co.uk.