Building site insurance is essential. It covers all the risks associated with the building site, including damage to the site itself, materials, and third-party claims as a result of injury. It is important to always carefully check the exclusions in any policy to ensure that you have sufficient coverage. If it excludes essential covers, you may need to take out additional insurance packages. You also need to understand the limits of the cover. Does it cover the full cost of materials? Does it include legal fees? In this guide, we will explore building site insurance in detail. We will also look at other essential insurance plans for building work or renovations.
Can you insure a building site?
Yes, you can take out policies that protect the construction site. This is essential for self-builds, renovations, conversions, and extensions. Site insurance covers the construction materials and other risks you may face on the construction site. The damage may be caused by natural disasters such as storms or floods. You will also be covered in case of theft or vandalism. Site insurance includes liability coverage in case people get injured on the building site. Site insurance generally helps to protect the builder against financial loss that may result from unexpected events.
It is essential to choose flexible plans as builders have varying priorities. You should be able to choose the duration of the cover so that it suits the timeline of your project. The excess should also suit your risk appetite. When applying for the insurance coverage, you should explain all your preferences so that you receive a quote for the right coverage, tailored to your needs. Many companies will let you adjust the details of the policy during the lifetime of the construction project.
Do I need insurance to be on a building site?
Site insurance or construction insurance isn’t a legal requirement. The only insurance plan you must have is employers liability insurance. If you only employ direct family members, you will be allowed to operate without employers liability insurance. Other policies like site insurance may be included in the contractor conditions, but the government hasn’t made them mandatory. In most cases, the owner of the property or contractor will purchase the site insurance plan. The owner can purchase it to protect the investment during construction or renovation. It is also common for the owner and contractor to share the cost of site insurance. The owner may also purchase the plan and list the contractor as an additional insured party.
What insurance do I need for building work?
Aside from site insurance, there are several covers you need for building work. One plan you must take out is employers liability insurance. The UK government requires builders to take out this policy, particularly those who employ people outside their immediate families. Employers liability insurance provides coverage in case an employee becomes sick or injured as a result of their work on the construction site. Without the cover, the builder will have to compensate the employee, and this can result in major financial losses. Some costs covered in this plan include lost wages, legal fees, and medical expenses.
You also need public liability insurance when working on construction sites. This protects the builder from claims made by third parties for injury or damage to property. It will cover the cost of defending against such claims. In case the court awards damages, the insurance company should cover the cost of these damages. You should note that public liability insurance doesn’t cover claims made by employees.
Contractors all risk insurance is also essential for builders. It provides coverage to the contractor against risks associated with construction sites. These include damage to the site or materials. The cause of the damage may be natural causes like fires and floods. It could also result from vandalism or theft. Any cause that isn’t explicitly excluded from the insurance plan will be automatically included in the cover. The insurance company will also pay for the loss of profits that result from the delays because of the damage. You shouldn’t use contractors all risk insurance as a substitute for public liability insurance. It is advisable to get both plans to ensure that you are covered against all possible risks.
Another type of insurance needed for construction work is professional indemnity insurance. In the case where a client claims you provided insufficient advice or services, this policy will cover your legal costs and expenses. The company will also cover the costs needed to rectify mistakes resulting from your work. While professional indemnity insurance isn’t required by the law, many clients will include them in their contractor conditions. Again, this doesn’t cover claims made by employees.
What insurance do I need when renovating a house?
Carrying out house renovations can boost the resale value of your home. When carrying out these projects, you will need to have sufficient insurance coverage. This will protect you against financial loss resulting from unexpected events like fires and vandalism. Home renovation insurance is a special type of policy that covers additional risks associated with the renovation of a house. The most common plans include public liability insurance, unoccupied property insurance, alternative accommodation, and building materials and equipment cover.
As mentioned earlier, public liability insurance covers you in case someone gets hurt on the property during construction. It also covers damage to property. Unoccupied property insurance provides coverage for a variety of risks, including vandalism, theft, and fire. Since unoccupied properties are at a higher risk of being damaged or vandalised, the premiums can be high. You should carefully check the terms of the renovation insurance to determine which risks are excluded.
Alternative accommodation insurance will cover the cost of finding and staying in alternative accommodation while the renovation is being completed. It may also include the costs of moving your items to the new residence.
Finally, building materials and building equipment coverage will protect you from financial loss in case you lose or damage your construction tools. Builders use expensive and specialised equipment and replacing them can financially drain the company. For this reason, equipment cover is essential.