Common questions about insurance for UK builders.
Is public liability insurance a legal requirement for builders?
No — public liability insurance is not a legal requirement. However, it is an essential business necessity. Without it, you are personally liable for any damage or injury your work causes to third parties. If a member of the public trips over your materials and breaks a hip, or your scaffolding damages a neighbour’s property, you would have to pay the claim out of your own pocket. Most clients, main contractors, and local authorities will not let you work without public liability insurance. In practice, trading without it is a significant financial risk that could bankrupt your business overnight.
How much public liability cover do I need?
The minimum most clients and main contractors will accept is £1 million. For domestic work, this is usually sufficient. For commercial projects, principal contractors and clients commonly require £2 million, £5 million, or even £10 million. The level of cover you need depends on the scale and nature of your work. If you are working on or near high-value properties, critical infrastructure, or projects where the potential consequences of an incident are severe, higher cover is prudent. Check your contracts and tender requirements — the required level of cover is usually stated explicitly. The cost difference between £1 million and £5 million cover is often relatively small, so it is worth getting a higher limit than you think you need.
Do I need employer’s liability insurance if I only use subcontractors?
If you do not employ anyone — no direct employees, no apprentices, no casual labour — then you are not legally required to have employer’s liability insurance. However, HMRC and the HSE take a broad view of what constitutes employment. If you have subcontractors who work exclusively for you, use your tools, follow your directions about how to do the work, and cannot send a substitute, they may be classed as employees regardless of what the contract says. If in doubt, take out employer’s liability cover. The consequences of being uninsured if a worker is injured and is subsequently classed as your employee are severe — unlimited personal liability plus a daily fine of up to £2,500 for each day without cover.
What does contractor’s all-risk insurance cover?
Contractor’s all-risk (CAR) insurance covers physical loss or damage to the works during the construction period. This includes damage from fire, storm, flood, theft, vandalism, accidental damage, and subsidence. It typically covers the permanent works (what you are building), temporary works (scaffolding, formwork, site huts), and materials and goods on site or in transit. CAR insurance does not cover defective workmanship itself — if you lay a patio badly and it needs redoing, that is your cost. But if a storm destroys the half-built extension you are working on, CAR insurance covers the cost of rebuilding it. On many contracts, the client takes out a joint-names CAR policy, but check your contract — on some projects, particularly smaller domestic ones, it falls to the builder.
Do I need professional indemnity insurance as a builder?
If you provide any form of design advice, specification, or professional recommendation as part of your work, professional indemnity (PI) insurance is strongly advisable. This is increasingly common for builders who take on design-and-build contracts, specify materials, or advise clients on structural or planning matters. PI insurance covers you if a client suffers a financial loss as a result of your professional advice or design being incorrect. For example, if you specify the wrong type of insulation and the building fails to meet Building Regulations, the cost of rectifying the problem could be significant. Even if you do not think of yourself as providing “professional services,” review your contracts — many standard forms include design obligations that trigger the need for PI cover.
How do I prove my insurance to clients and main contractors?
Your insurer will provide a certificate of insurance or a summary document showing the type of cover, the policy number, the coverage limits, and the expiry date. Keep digital copies readily accessible so you can send them quickly when asked. Many clients and principal contractors will ask for proof of insurance before you start work, and some run annual checks on their supply chain. Having your insurance documents well-organised and up to date demonstrates professionalism and speeds up the onboarding process for new clients. Using a tool like The Site Book to store your compliance documents means you can share proof of insurance instantly alongside your RAMS and other project paperwork.