Builders insurance is designed to cover self-employed builders, small building firms, and building tradespeople against all potential liabilities they and their staff might face in the daily course of building works.
Builders Insurance Packages and Coverages
A typical package will always contain public liability insurance to guard against all claims for loss or injury made against the builder by clients and members of the public.
Additional builders insurange optional coverages include Employers liability, which is a legal requirement if the builder employs full- time staff and bonafide sub-contractors, tools insurance which covers all the builders tools on or off site and goods in transit cover which covers damage to goods and materials in transit to and from a building site.
Most builders insurance policies will include products liability as a standard coverage. This covers the builder against any defective materials he may have supplied.
All builders will require public liability insurance because of the numerous amount of accidents and losses that can occur at a builders workplace.
What Risks Does Builders Insurance Cover?
At ground level, all sorts of risks present themselves for which the builder could be held liable and would need buiders insurance.
Electric cables, tools, power tools, tool boxes, building materials such as limestone cement, paint and other chemicals, moving machinery, pollution risks and damage to neighboring property, are all real risks of building activity, from which all too frequently accidents occur injuring other workers on site, clients or members of the public.
Risks That Builders Face
All builders insurance polices ask about the types of building work you do and especially about whether you work at height.
Scaffolding, timber, bricks, walls, roof tiles or even paint pots falling from the height can seriously injure or even kill members of the public or other site workers.
A typical builders insurance policy or liability package classes the type of risk into different height defined types each with their own policy clauses and restrictions.
A further division is made by the type of property that the builder usually works on, either private houses or commercial buildings.
Least Risk With Builders Only Working on One-Story Buildings
Builders who work on single story buildings and do groundwork and interior alterations to private houses and buildings are considered the lowest form of risk by the underwriters.
The cheapest builders insurance policy available on the market would be for a sole-trader builder or handyman who does this type of work and only requires Public liability of one million to cover on-site risks to clients and the public.
Work on Private Homes and New Builds
The second class of builders insurance is for small building firms or sole traders with or without sub-contractors, who work on private houses and new builds.
The height restrictions for this type of coverage are usually set at two storys to allow for taller townhouses.
This is the most popular form of small builders insurance and covers the majority of firms and sub-contractors working on new housing estates and private self-builds.
Commercial Builders Insurance
The commercial builders insurance class covers small to medium-sized building firms who work predominantly on commercial property such as offices, shops, pubs, hotels, government buildings and projects and also large blocks of flats and private condominiums.
Public liability insurance for these companies is usually set at ten million for any one event, as required by the contract conditions for this type of work.
An expensive extension to this cover but often the necessary one is that of working in hazardous environments, such as in the industrial plant or at extreme heights.
If a builder uses heat in the course of his work, for example using a blow torch on metal pipe work, this presents a much greater risk to the building from fire and quotes and premiums offered will consequently be much higher.
Insurers may well also demand higher levels of liability limits to cover heat work.
Employers Liability Insurance
Aside from any statutory regulations and contract commitments, if a builder employs any laborers, ground workers, bricklayers, carpenters, roofers, glaziers, plumbers or painters and decorators, even on a temporary or part-time basis, they would be foolish not to have employers liability insurance coverage.
Unfortunately, accidents to workers are all too common on building sites, second only to farms in terms of risk.
Workers can be seriously maimed or injured and will undoubtedly turn to their employer as responsible.
Loss of Tools Insurance
Finally, builders should not forget to cover their tools against theft loss or damage; replacing a cement mixer will cost more than the average builders insurance policy premium.
Most policies allow the proposed to set the level of indemnity cover for the value of the tools.
If claims for loss of tools are made, the insurance company will often reduce the claim amount paid, for wear and tear.
All Risks Insurance Policies
An all risks builders liability and tools insurance policy can be purchased relatively cheaply currently as it is a class of business commercial insurance companies wants to encourage and offer competitive rates for.
For this reason, it pays builders to shop around for builders insurance coverage and the Internet provides offers from all the top underwriters and insurance companies with online quotation systems.