CONSTRUCTION INSURANCE SOLUTIONS

Provides cover for all contracted parties on a specific project policy. These policies are becoming a more common way to insure large ‘one-off’ construction projects as they are considered more comprehensive and cost-effective than purchasing several individual policies.

Insuring under a single project policy can also avoid possible issues with different sub-contractor insurance levels and confusion over where liability rests between the main contractor and various sub-contractors. Cover typically includes Public Liability Insurance, Non-Negligence and Works Insurance. Employers’ Liability is not included as it is a legal requirement that all UK businesses have this in place.

Public Liability Insurance isn’t legally required, but it’s essential for construction trade professionals. It should be purchased by both contractors and subcontractors and is often a condition set by clients when appointing contractors to projects. Most local authorities require at least £5m in cover for construction projects, and many trade associations demand proof of insurance for membership.

Public Liability Insurance covers third-party claims resulting from injury or damage to property, due to an insured’s business activities. Third-party claims are one of the most common claims made against contractors in the construction sector, so it’s important to have the right cover in place to protect your business.

Employers’ Liability (EL) Insurance with a minimum cover of £5m is a legal requirement for any UK business, although many policies offer a higher level of cover as standard.

EL Insurance is designed to protect the business from claims of injury or illness made by employees and labour only sub-contractors. Typically, this will cover any legal costs incurred and compensation awarded to the claimant.

Products Liability Insurance protects against third-party claims for injury or damage caused by any products manufactured, designed, or supplied by a business.

This cover provides important protection for any contractor, subcontractor or sole trader who supplies building products or materials of any kind.

Protects the owner against the cost of rectifying structural defects of the owned building.

A Structural Warranty must be purchased in advance of completion and usually lasts 10 years from original construction. Where a building is sold on completion, this warranty is passed on to the buyer and remains valid for the duration of the agreed warranty period.

Protects against damage to, or theft of, any plant owned by a business on an ‘All Risks’ basis.

Covers a business for loss, theft or damage to plant and equipment hired, by the business, including any continuing hire charges.

As a condition of hire most hiring companies will require evidence of Property Insurance prior to delivery. It is important to establish the level of cover required before entering into any contracts. Typically, these policies do not include Equipment Break Down cover.

Fleet Insurance is available for all types of businesses and vehicles including cars, vans, and larger commercial vehicles. Most businesses operate vehicles as an integral part of their activities with some being unaware that it is possible to obtain a Commercial Motor Fleet policy for as few as three vehicles.
The benefits of a Fleet over individual policies generally include:

• Open driving, i.e. without having to name all possible drivers
• Business use for all vehicles
• Occasional business use of employees vehicles
• Movement of obstructing vehicles
• Road risks for special type plant whether owned, hired or loaned dumpers, road rollers, JCB’s, etc.
• Adjustment by periodic declaration, usually quarterly rather than individual endorsement
• Fixed annual rates per vehicle.

An essential component of any construction companies’ insurance portfolio because construction projects are often subject to delay. Fire, flood, equipment breakdown, supply chain disruption, or damage to a partly-built structure, can stall a project. When timelines slip, financial consequences can rapidly escalate.

Business Interruption Insurance helps absorb these financial shocks. Business Interruption is designed to safeguard your income and operations, keeping your project on track. Cover can include protection for:

• Loss of Profits cover during downtime caused by insured events
• Additional expenses to minimise disruption and speed up recovery
• Contingent Business Interruption for supplier or customer failures
• Extensions for Denial of Access due to damage or safety concerns
• Utility Outage Cover for power, water, or telecom failures
• Additional interest/financing costs
• Ongoing salaries and expenses.

Provides cover for the loss, damage or theft of construction materials, plant, tools, and equipment while being transported between suppliers, storage facilities, and project sites. This includes goods in your own vehicles as well as items moved by third-party hauliers. The sum insured can be set per load, per vehicle, or per individual consignment.

Most construction projects involve the frequent movement of materials—such as steel, timber, aggregates, fixtures, or prefabricated components—as well as high-value tools and machinery. Transit Insurance helps protect contractors and developers from financial loss if critical items are damaged or stolen before they reach site, preventing costly delays and disruption.

In an increasingly litigious society, there is a growing risk of managers being sued personally in matters associated with their construction business activities.

Individuals are exposed to claims from a wide array of individuals and organisations, including from employees, regulators, customers, creditors and government agencies, all of which can be protected against.

Construction relies heavily on machinery and most modern buildings involve intricate engineering systems. Delays caused by engineering failures can be extremely costly for construction projects.

Cover can include;

• Machinery Breakdown
• Machinery Movement Damage
• Machinery Erection & Commissioning All Risks
• Losses as a Result of Machinery Breakdown
• Statutory Inspection Service
• Delay in Start Up.

Construction businesses are frequently targeted by cyber criminals due to their reliance on email, digital workflows, and large financial transactions. Attackers exploit everyday technology such as email, mobile devices and outdated software to gain access and cause disruption.

Ransomware, phishing scams, and data breaches have become some of the most common and disruptive threats in the sector.

A comprehensive Cyber Policy will cover you for the direct costs and liability to third-parties following a cyber-attack, and the financial losses incurred as a result of cyber-crime.

Professional Indemnity Insurance typically covers a wide range of risks including:

• Professional negligence
• Copyright infringement
• Libel and slander
• Employee dishonesty
• Loss or damage to client documents.

Any business or sole trader providing professional consultancy services, advice or design work to another business is strongly advised to take out Professional Indemnity Insurance.

However, all construction firms and tradesmen should consider their risks and exposures in this regard and how they might be managed through Professional Indemnity Insurance. This will protect the business against the risk of incurring large financial losses resulting from legal defence and compensation claims.