Building Contractor Insurance

There is a large variation in building contractor businesses, with companies ranging in scale from small to very large. This difference in scale is reflected in the fact that your building contractor insurance needs and requirements may vary.

Regardless of the type of your building contractor company though, as soon as you become a self-employed building contractor you need to ensure that your building contractors insurance includes liability insurance in order to cover any injury to either your employees or members of the public. In addition, even if you work as a sub-contractor it is necessary to take out liability insurance, as most of the main contractors will not allow you on site unless you have the appropriate insurance in place.

Building contractors insurance is an essential part of your business plan and there are a number of key risks that your insurance should cover. To avoid any uncertainty it may be worth your while consulting with an insurance broker to ensure that you're getting the coverage you need for all the areas of your operation.

There are certain guidelines every new venture building contractor should keep in mind when researching and acquiring insurance coverage for your business. If you intend to pursue government or municipal contracts, it is important to be sure that you have all the coverage required to pursue those contracts. While proof of insurance is not necessary to place a bid for most jobs, it is essential once the contract is approved and it will help fast track the process.

As a building contractor you will need liability insurance but you may also require other additional insurances such as All Risks cover (which protects the building while it is under the course of construction, materials, tools, machinery or plant that you may have on site).

You will also need to decide whether you need to take out road risk cover on your plant and machinery in your building contractor insurance.

You may also decide to include environmental insurance, and railroad-specific insurance for projects involving or in proximity to active rail lines, in your insurance portfolio.

Or perhaps you need to consider political risk insurance, which covers projects scheduled in foreign countries, or projects that rely heavily on materials produced in or shipped through foreign countries.

As a building contractor you have no doubt invested a lot of time and money in future jobs. Everything from equipment, supplies, tools and even documents are significant assets and they should be protected by your building contractors insurance policy.

Getting your insurance sorted out should not be difficult. There are many companies offering ‘quote and buy’ insurance policies online, including tradesmen insurance which is a generic insurance product which can be used to cover you as a building contractor.

If you have any doubt about the insurance you need or you feel your business activities are slightly different from the norm then your local insurance broker will be able to help. It is worth spending a little time and effort to make sure you get the cover you need.

Remember as well as the need for building contractor insurance you also need to adhere to government regulations. Of particular interest are the Working at Height Regulations 2005, covering steps you need to follow when working at height, something in the building trade that no doubt is very relevant.

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To talk to an expert in your area and get a quote.