Construction Insurance is the overall name given to a group of insurance’s that make up your cover. This cover usually includes protection against damage to property and third-party claims. You are required to have the relevant construction insurance in place on most building sites and you should have this in place if you have employees and are working in customers homes.
We admit, Construction Insurance can feel a little confusing, especially if you are new to the trade so we have put together this quick guide to help you get the right cover.
What is Public Liability Insurance?
Public liability insurance is common in all types of business, not just construction. It protects against liabilities for injury and property damage to third-parties i.e. non-employees.
If your work involves working near other people or in/on their property, which usually includes everyone that works in construction, then you should 100% consider having public liability insurance. This insurance is renewed every 12 months and protects you against any claims made against you, which could be very costly if you don’t have this in place – for some, it can potentially put you out of business.
What is Product Liability Insurance?
Product liability insurance is covered against injury or damage to property from the products that you supply, manufacture or import.
Commonly, this type of cover is taken out by electricians and plumbers. It protects against any claims that may arise due to the products they have used or adapted. However, there are a whole other range of different construction trades that would also benefit from this type of policy.
What is Employer Liability Insurance?
Employer liability insurance protects you (the employer) against injuries or illness. This insurance is compulsory by law if you are an employer. You may also want to look into this type of insurance if you are looking at building your own home too. Be mindful, that even though you may not have someone directly working for you, you may be at risk of claims made against you from volunteers and even sub-contractors.
What is Contractors All Risk Insurance?
Contractors all risk insurance protects against physical damage to works, site materials which you are contracted. These losses are usually excluded as part of your public liability policy but it is worth checking with your provider first.
If a contractor has caused damage to the works, public liability insurance may not provide full coverage. In this case, contractors all risk insurance is needed so that you can cover the costs of rectifying any damage caused.
What is Professional Indemnity Insurance?
Professional indemnity insurance protects against loss or damage which is a result of professional negligence or wrongful advice. For example, if you provide advice or design for a site then you should consider this insurance to protect yourself against any claims.