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What Insurance Should Builders Have

Knowing what insurance your builders should have is important when you’re about to hire experts for a construction project. Some wrongly assume that a license is enough to cover the basics, but that’s far from true. In reality, builders need to be covered by multiple types of insurance to stay on the safe side.

Some professionals on the market might not have the complete package. This might call for additional effort in your search for the right contractors.

Employer’s liability insurance

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Employer’s liability insurance covers an employer in the event that one of their workers suffers in the course of their duties. For example, if a construction worker gets injured on a construction site, employer’s liability insurance will cover the liability of their boss.

This is important when working with crews of multiple specialists. Even if they are qualified and experienced, you can’t guarantee that nothing will go wrong in the course of executing the project. This makes it important to pay attention to employer’s liability insurance as one of the most critical factors when hiring construction workers.

Public liability insurance

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Public liability insurance, on the other hand, covers scenarios where workers damage someone’s property. Even if the damage is minor, it can still have severe implications for the project as a whole.

Public liability insurance is also something you can take out on your own when hiring contractors. This can be beneficial when the company you want to work with is otherwise great in all regards, but doesn’t have this specific form of insurance. While some clients are willing to overlook this fact, this is not advised, especially if you’re building in close proximity to your neighbours.

Contract works insurance

Finally, contract works insurance is useful to have in the event that something jeopardizes the project and destroys its progress, either partially or completely. Contract works insurance will then cover the damages you’ve incurred.

This can help you avoid significant losses – and the contractor won’t be liable for anything on their own end either. That can help prevent financial problems on their end, which could spell the end of your project in many cases.


Clara Annesley

Clara Annesley is an interior design and construction content writer. She holds a BSc (Hons) in Architectural Design Technology from the University of West London. Clara specialises in residential construction for topics like health & safety, architectural design and writing cost guides for renovation and remodelling projects.