What cover might a builder need and how do certain policies offer financial protection?
If you run your own builders or construction business, there’s a good chance you want to ensure that your company and its finances are protected as comprehensively as possible. There are a number of threats that could affect your business at any time – for instance theft of valuable tools and equipment, or an employee suffering injury while carrying out their work.
That’s where builder’s insurance can come in handy, helping to protect your business against these risks.
What is insurance for builders?
The term builders insurance is not actually a policy in itself, but it refers to a number of different policies which could provide your business with comprehensive cover. Your builder’s insurance package should serve as a safeguard against the specific risks presented to your business’s assets, giving protection tailored to your needs. Your builder’s insurance requirements will depend on your particular circumstances and the risks you deem your business to be vulnerable to.
Builder’s insurance requirements
As mentioned, the exact makeup of your builder insurance will depend on your business's circumstances and its insurance needs – that is, what policies you're required to purchase and which areas of your business you deem it necessary to protect. However, there are likely to be a few core forms of cover that many builders will need to have in place, including:
Aside from these core covers, there could be a number of other types of builder’s insurance that you want to have in place.
For instance, contents insurance may form part of your cover, as you could have a number of physical assets that you want to protect. Your tools and equipment can be covered under contents insurance, which can provide funds to repair or replace your items in the event that they are lost, damaged or stolen. If an employee accidentally damages your business’s cement mixer at a paving job, then equipment insurance could reimburse you for the relevant repairs.
It’s likely that as a builder, you travel to your client’s premises or home to perform work for them, and need to transport a number of items with you. It’s unlikely that your tools and equipment insurance will cover your contents while they are being transported - you would need to have a goods in transit policy to be protected. A successful claim for goods in transit could provide you with the money you need for replacements or repair work.
It could be the case that one of your clients claims that the work you have carried out for them has resulted in their physical or financial loss. For example, if you are in the process of building a home extension for a client and fail to erect suitable scaffolding to support the new structure, the structure may collapse and cause damage to the client’s property. In this situation, it’s likely that you would be liable to pay for the damage and repairs – builder’s indemnity insurance could be very valuable if you find yourself in this situation.
As mentioned, there are a number of types of business insurance that can protect against the risks that you may encounter. It’s recommended that you take the time to thoroughly consider the threats that your business may be exposed to, and consider taking out the appropriate cover.
How much will my builder’s insurance cost?
The price of your builder’s insurance policy will largely be determined by the extent and scope of cover that you choose to take out. As a general rule, it’s safe to assume that the more comprehensive your cover, the more you will pay for your policy.
Insurers will provide quotes based on the level of risk that you present to them, and how likely they think you are to claim on your policy in the future. Just some of the factors that could influence the cost of the builder’s insurance quote you receive include:
- The nature and level of risk associated with the work you carry out
- The size of your company and number of employees
- The level of experience your employees have
- The value of any assets you want to insure
- The scope of cover you require.
To ensure that you get an insurance quote best suited to your business's specific needs, it's recommended that you consult a dedicated business insurance broker for a bespoke builder’s insurance package.
Builders insurance quotes
To get a tailored business insurance quote to exactly suit your needs, get in touch with Make It Cheaper Financial Services today. Our team of insurance experts are on hand to help you decide which types of insurance may best benefit your builder's firm, and provide you with a competitive, no obligation quote. To speak to one of our advisors, call 0800 144 4808 today.
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