Registered Builder's Insurance Quote
Registered Builder's Insurance
Builders necessarily have both significant material loss/damage exposure and also public liability risk. While in charge of the site any material loss or damage will be the builder’s own financial risk, which is especially high towards the end of each project. Most losses will be of this type, although the biggest value claims tend to be the public liability ones in the form of injury to a third party. As both types of cover are essential, they are normally contained in the one insurance product.
“Contract Works” + “Public Liability” = “Construction Insurance”.
Why do I need Owner Builder Insurance?Ask a Registered Builder if they have Public Liability (sometimes called Legal Liability) and Contract Works (Material cover) insurance, and you can be absolutely sure they will say “of course”. Despite Owner-Builders facing the exact same insurable risks (and more), they often go without insurance.
Why do Owner-Builders fail to take out insurance?
- The confusion between this construction risk insurance and statutory warranty insurance leads many Owner Builders to think they have ticked ‘insurance’ off their lists.
- They incorrectly assume that Contractors will have all the necessary insurance, without realising that is completely impossible.
- Renovators often assume that their domestic Home insurance will also cover the project, when in reality most Home insurance policies don’t even continue to cover the House during a construction project.*
*Most domestic Home insurance policies will exclude liability or any material losses arising as a result of construction works. The majority go even further, either seriously restricting cover (for example, removal of cover for “any section of the house undergoing works”) or causing the entire policy to be invalid.
What is Owner Builder Insurance?
As an Owner-Builder you are licenced to be, and required to be, the person in charge of the construction site. In almost all cases you’ll be responsible for damages caused to third party property, but even more importantly, for injuries caused to a third party. Injuries that are serious, or even permanent, can arise on even the smallest projects.
You should take out a package that includes any of the following that are applicable to your project. Each will be included as an option on your quote.
- Contract Works and Public Liability (this is the core insurance product usually referred to as the “Owner Builder Insurance”).
- Existing Structures (for Renovators needing to have the actual House covered, which will usually be the case)
- Voluntary Workers (group income protection and medical expenses cover for the owner-builder and unpaid friends and family)
- Workers Compensation (you will need this. See here, under “Do you recommend Workers Compensation” for a detailed explanation)
- Tools and Equipment (you can’t insure equipment belonging to contractors, but you need this cover if using your own tools on site)
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