Do Self-Employed Builders Need Insurance & What Policies to Consider

If you’re self-employed, you’re responsible for managing your own risks. In this blog, we’ll look at the insurance covers most relevant to solo builders and how to choose the right protection.

Why do self-employed builders need public liability insurance?

Builders face many risks in their line of work. Unfortunately, no matter how well prepared you are, mistakes can happen – and a single slip could be disastrous, whether that is accidental personal injury caused to others through your actions, or damage to their property.

You may face legal action for the allegations of third-party personal injury or property damage. Builders public liability cover can protect you, by providing legal defence costs and pay compensation in the event you are found to be at fault.

Public liability insurance for builders

Whatever type of work you are doing, from building a wall to an extension, Towergate can help you ensure you have sufficient contractors public liability cover in place, with limits up to £10 million or higher on request.

What other covers do self-employed builders need?

There are a range of covers you may need for your business. We will explain some popular covers for self-employed builders below, but you can also speak to an advisor for more information.

Tool cover for builders

Tool insurance is there to cover the cost of replacing or repairing equipment if it is damaged or lost, for example due to flooding, fire or theft.

Towergate can source flexible tools and equipment cover, including for specialist equipment and hired plant. Tools must be locked securely outside business hours, and a single item value limit will apply.

Builders’ personal accident insurance

If a person dies or is seriously injured in an accident and a claim cannot be made against a third party, this valuable cover provides you with financial support.

Personal accident insurance provides a lump-sum payout in the event of death, injury, or disability resulting from an accident. The payout can be used to cover medical expenses, replace lost income due to inability to work, and other related costs.

Cyber insurance for builders

If you hold customer data, such as names, addresses, banking information, or have a website, or are subject to a payment card industry (PCI) merchant services agreement, you should be protecting your customer data through cyber insurance. Otherwise, you could be compromised in the event of security breaches e.g. due to hackers, computer system failure, breach of data protection, etc.

Cyber insurance provides cover for data recovery, business interruption and intellectual property theft. There is also access to a cyber response helpline, which is manned by information security experts.

Specialist cyber cover for builders includes covering the costs involved of:

• Restoring data and equipment
• Informing clients of a data breach
• Meeting ransom demands
• Loss of net profit
• Legal defence costs and damages that are legally liable to paid to other parties

Stock cover for builders

Builders stock insurance covers the cost of repairing or replacing your stock if any of it gets stolen or accidentally damaged, meaning you can continue to fulfil your contracts.

Contract works insurance for builders

Contract works cover protects work in progress on a construction or renovation project against accidental damage, loss, or destruction. 

Builders insurance from Towergate

If you want to build a solid foundation for your business, talk to the experts at Towergate about builders’ liability insurance.

Builders’ public liability insurance covers legal costs for allegations of accidental personal injury or damage to third party property, cover to pay for third-party compensation and repairs to damage.

Get a builders insurance quote

Get a builders insurance quote online or call us on 0330 173 3617.

About the author

Diane Caplehorn is a respected industry leader with over 25 years' experience within the insurance sector. She works across a wide spectrum of insurance products and policy development, delivery and optimisation for health and beauty, professional risks and martial arts clients.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.