Though many industries run risks which the right insurance can help to counter, construction is notable for being Europe’s riskiest land-based employment industry. For this reason, if you are a builder, it would be important for you to heed the following tips about insuring your activities.
Employers are legally required to hold insurance
If you employ people in your business rather than run it as a sole trader, you need to have what is called employer’s liability insurance. You could use this to meet costs associated with claims arising from employee injuries. Skipping this insurance can see you paying high fines.
Watch out for members of the public, too
If you accidentally injure a member of the public or damage their property as a result of you carrying out your building responsibilities, this could also give rise to a liability claim. However, with builders public liability insurance, you can more effectively handle those claims.
Don’t overlook financial loss insurance
This is often freely offered with public liability insurance, as is the case with the business-oriented insurance scheme Tradesman Saver. Financial loss insurance can help if another business loses money because of your building work but not due to injury or property damage.
What if products you supply are accidentally defective?
This could happen if you slip up when initially fetching the products – for example, if you source them from an ill-reputed supplier. If you provide products that later cause personal injury or property damage, product liability insurance could help you.
You can cover a range of legal expenses
Furthermore, you can cover them with just one type of insurance: legal expenses insurance. Through using this, you can meet costs resulting from – to list a few examples – employment disputes, tax investigations and compensation awards.
What if your tools and equipment are stolen or damaged?
Fortunately, you can afford to replace those items if you hold what is known – quite simply – as tools and equipment insurance.
Do you provide services to other businesses?
This isn’t entirely out of the question if you are a builder, but a blunder in your work could lead you to face accusations of professional negligence. That’s where professional indemnity insurance can come to the rescue.
Will you be spending a sustained period on a construction site?
If so, don’t rule out opting for what is called contractor’s all risk insurance. Otherwise called contract works insurance, it can financially buffer your company against various potential hazards that could arise from ongoing work on a construction site.
If a sudden injury or illness stops you working full-time…
… you can make up the resulting costs if you hold personal accident and sickness insurance.
Potential clients or customers might ask to see your insurance policies
Citizens Advice recommends that such people in the domestic market do exactly this, which highlights yet another reason to have builders insurance in place. You can source an array of policies from Tradesman Saver, which has also published this in-depth guide to builders insurance.