What should be included on a construction business insurance policy?
Irrespective of your particular trade, there are a number of core covers that most individuals and companies operating in the construction sector should consider:
Public Liability Insurance – If you work with private homeowners, or main contractors they will almost certainly want evidence that you have Public Liability Insurance in place. It may even be a contractual obligation. You can choose from a range of indemnity limits depending on what might be appropriate for your particular circumstances.
Employers Liability Insurance – It is compulsory in the UK to have a minimum of £5m EL cover in place if you have anyone working under your instruction, including part time or casual labour.
Professional Indemnity Insurance – Working from architects drawings and instructions is one thing – but you might need to made modifications or practical considerations when you’re on a job. This makes you the expert on site and you could be held accountable. Professional indemnity insurance protects you in this situation.
Contactors All Risks (CAR) – Sometimes referred to as Contract Works, this covers the work in progress. So, if the structure you are working on is damaged – for example by a flood – the cost for the rework will be covered.
Own and hired in plant and machinery cover – Where you own expensive plant and machinery in your own right, you will want to insure it as a valuable business asset. Where you hire equipment from time to time, it’s usually far more cost effective to have an annual cover in place than it is to take out short term cover each time.