Building work comes with risk.

You may be working in someone’s home, on a commercial site, near members of the public, or alongside other trades. Even when work is carried out carefully, accidents can still happen.

That is where public liability insurance can help.

Public liability insurance for building contractors can protect your business if someone is injured, or if property is damaged, because of your work.

It is not always a legal requirement. But many clients, main contractors and commercial sites will ask for proof of cover before you start work.

What does public liability insurance cover?

Public liability insurance is designed to cover claims made by third parties.

A third party could be:

  • A customer
  • A member of the public
  • A visitor to site
  • Another contractor
  • A neighbouring property owner

For building contractors, claims can happen in many ways.

You might damage a customer’s wall while moving materials. Someone could trip over tools or cables. Work on one part of a property could cause damage elsewhere. Or a member of the public could be injured near your site.

Public liability insurance can help cover compensation claims and legal costs if your business is held responsible.

Why is public liability important for building contractors?

Building contractors often work in high-risk environments.

You may be using tools, machinery, scaffolding, ladders, building materials and temporary site access. You may also be working around customers, tenants, staff or the public.

This means the chance of accidental damage or injury is higher than in many other industries.

Public liability insurance gives you a way to protect your business if something goes wrong.

It can also help you meet client requirements.

Many commercial clients, local authorities, property managers and main contractors will not let a builder on site without suitable public liability cover. Some will also ask for a set level of cover, such as £2 million, £5 million or £10 million.

Is public liability insurance a legal requirement?

Public liability insurance is not usually required by law in the UK.

But that does not mean it is optional in practice.

Many contracts will make it a condition of the job. If you cannot show proof of cover, you may lose the work.

It can also be a sign of trust. Customers want to know that your business is properly protected if something goes wrong during the project.

What could happen without public liability insurance?

Without public liability insurance, your business may need to cover the cost of a claim itself.

That could include:

  • Repair costs
  • Compensation payments
  • Legal fees
  • Court costs
  • Losses linked to the claim

For small building firms and self-employed builders, this can be a serious financial risk.

Even a simple accident can become expensive if it leads to injury, property damage or legal action.

Public liability insurance for self-employed builders

Self-employed builders can still need public liability insurance.

You do not need to run a large company to face a claim. If your work causes injury or damage, a customer or third party may still make a claim against you.

For example, you may be working on a kitchen extension, a small renovation, a wall repair or a commercial fit-out. If something goes wrong and someone else suffers a loss, you could be held responsible.

Public liability insurance can help protect you in this situation.

Public liability insurance for building companies

Building companies may have more people, more sites and more contracts to manage.

This can make public liability insurance even more important.

If you employ staff, use subcontractors, work across several sites or take on larger projects, you may need a higher level of cover.

You may also need other types of contractor insurance, such as employers’ liability insurance, contractors all risk insurance or professional indemnity insurance.

The right cover depends on how your business works.

Does public liability cover poor workmanship?

Public liability insurance does not usually cover the cost of fixing poor workmanship itself.

For example, if work needs to be redone because it was not completed properly, that may not be covered.

But if poor workmanship causes injury or damage to someone else’s property, public liability insurance may help with the resulting claim.

The details depend on the policy, so it is important to check what is and is not included.

What level of public liability cover do building contractors need?

There is no single answer.

The right level of cover depends on the type of work you do, your contracts, where you work and who you work for.

Some clients may ask for a minimum level of cover before awarding a job. This is common on commercial projects and public sector work.

Many building contractors choose cover in the millions because claims can be costly. But the right amount should be based on your actual risk and client requirements.

Other insurance building contractors may need

Public liability insurance is only one part of the picture.

Depending on your work, you may also need:

A builder working alone on small domestic jobs will not need the same cover as a company managing large commercial projects.

That is why it helps to review your cover properly.

Speak to CHAS Insurance

CHAS Insurance helps building contractors arrange cover that reflects the way they work.

Whether you are self-employed, run a small building firm, or manage larger contractor projects, we can help you understand what cover may be suitable.

To discuss public liability insurance for building contractors, speak to the CHAS Insurance team.