What insurance does a self-employed builder need?

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If you work as a self-employed builder, it’s important that you are properly insured. But with so many different types of insurance out there, it can be difficult to know what you need and why.

Do I need insurance as a self-employed builder?

In some circumstances it may be a legal requirement to have insurance. In others, it may be a contractual requirement. However, it is always important to protect you and your business in the event something goes wrong.

The most common types of insurance you could need include:

Do I need employers’ liability insurance if I’m self-employed?

There are circumstances in which you will be legally required to have employers’ liability insurance, even if you are self-employed.

If you employ anyone, even on a part-time basis, as a trainee, or even as a volunteer, you must have employers’ liability. This can also apply if you work with certain sub-contractors and will depend on the working status they are deemed to have.

If you are in any doubt, speak to an insurance company that understands your industry. You can be fined £2,500 for every day that you do not have Employers’ Liability Insurance.

Do I need public liability insurance?

You should always consider public liability insurance. It protects you in the event something you do causes someone harm or damages their property.

Public liability covers your interactions with members of the public or clients. Some clients, larger organisations and trade associations may insist you have public liability as a term of your contract with them.

Do I need professional indemnity insurance?

If you give advice as part of your work, for example relating to design, materials, or specifications, you should consider getting professional indemnity insurance.

Should your advice prove negligent and ends up causing damage, you can be left with an expensive bill for damages. Professional indemnity insurance is designed to cover the costs of a subsequent claim against you.

Do I really need insurance for my tools?

If you rely on your tools for your work, then it’s important to consider insurance to protect you if they are lost, stolen or damaged. With insurance, tools can be replaced quickly, allowing you to get back to work.

Not having tools insurance can leave you unable to finish a project or pay for replacements.

What level of cover do I need?

When you apply for a quote, you might be asked for details about what you do and where, as well as the size of your business. These details will typically help determine how much cover you need.

It is normal to get public liability cover of between £1 million and £10 million. Professional indemnity policies often start at about £100,000.

Insurance for your tools will depend on the value of your tools, but cover can be provided for between £1000 and £15,000.

If you need employers’ liability insurance, you must have cover of at least £5 million.