Are you looking for builders to work on your home, or in a public space? Then you’re probably wondering what kind of insurance they should have. There’s a responsibility that accompanies working on public and private property, especially when heavy machinery is included. As a result, professional businesses should be covering themselves if the worst should happen. To help you understand builders’ insurance a bit more, we’ve put together this brief overview of what to assess when choosing a contractor.
Why Do Builders Need Insurance?
No matter how certified, experienced and skilled a builder is, they cannot prepare for everything. Accidents happen and it’s essential to be insured for freak events. Weather, crime and neglect are factors often out of a business owner’s control. Furthermore, regardless of how vigilant you are, no amount of knowledge or experience can prevent a freak storm. As a result, we recommend choosing builders that are ready for the unexpected with thorough insurance that covers all aspects of unforeseen accidents and damage.
Mandatory Builder’s Insurance
A selection of insurance policies are available to builders to cover almost any scenario. However, some of them are legally required and some are not. Please see below for further exploration into the necessary coverage you should be looking for.
Employers’ liability insurance is mandatory for any business that has employees. The reason for this is to cover any accidents that result in harm, illness or injury to a person working for your company. This is especially important for businesses that conduct dangerous physical work, such as builders. It also allows for compensation to the individual in the circumstance where they are unable to work, or if it affects their day-to-day life. There are exceptions to the rule, for example, if you only employ family members, or if they are overseas. However, we recommend verifying this before assuming you are exempt.
Some insurance policies are optional and not legally required. Although, just because the government does not enforce this kind of insurance does not mean it isn’t advised to take the coverage out. In fact, we recommend looking for a builder that opts for all kinds of insurance, as it results in the best interest of the customer should anything happen.
Public liability insurance is similar to employers’ liability insurance. However, the differences are that it’s not legally required, and isn’t just designed around private employees. This kind of insurance covers you in the scenario that a member of the public is hurt because of your business’s work or activity.
A policy that protects a contractor regarding legal action from a member of the public is particularly important for builders, due to the nature of their work. Often, they’ll be working in public spaces. Although health and safety regulations prevent most accidents, they can never stop all of them. Suppose something out of your control causes harm to an individual on public property. In that case, this policy will allow compensation to be paid out through your insurance broker, and not from the business itself.
As a potential customer, contract works insurance is a policy you should be looking out for when hiring a builder. It covers all work in progress from weather and criminal damage to accidental on-site damage. Say you have a half-finished building, and a flood causes irreparable damage to the foundation. Without contract works you’d be looking at a large replacement bill. However, with contract works insurance, you’re covered.
Choose Rees Brothers For Professional Builders
At Rees Brothers, we understand the importance of expecting the unexpected. If you’re looking for builders that care and plan ahead, then get in touch with one of our expert team today.