Types of cover most used by UK builders
The types of insurance cover most used by UK builders are similar to those used by most other professionals and tradesmen. Although some of these insurance policies are common to all businesses, some are also specifically related just to builders. Some of the cover is legally required, while others are optional. However, it’s a good idea to carry all of these types of cover if you want to stay financially well-protected.
Legally required cover
liability is the only cover required by law, and then only if you employ
someone else. This includes any staff, part-time staff, trainees,
sub-contractors, or relatives. Employers’ liability pays the cost of a
claim from an employee who has been injured while at work. It also pays
the cost of a claim from an employee who has becomes seriously ill as
the result of working for you.
Highly recommended cover
There are some insurance policies that most of the professional builder associations recommend having, although they’re not compulsory. One of these is Public Liability insurance. Public Liability provides coverage for your legal responsibility for third party injuries. It also covers the property damages that you may accidentally cause during the course of the building work. Many people now insist that builders have Public Liability insurance before permitting them to undertake any work on their property. This is usually taken out in amounts of one, two, or five million pounds, and is usually fairly inexpensive.
Another highly recommended covers is Builders Products Liability
insurance. This covers your legal responsibility for third party bodily
injury or property damage caused by the products you sold or supplied.
However, it should be noted that Public and Product liability insurance
covers do not apply to employees.
Some insurance companies
offer builders comprehensive insurance packages that combine some of the
aforementioned cover. One such type of combined covers package is
commonly known as Site Insurance for Self Builders. It is for single
dwelling self build projects and normally covers contract works,
liabilities, personal accident, and legal expenses.
Other extensions may be added on, such as loss of rental income or loss of mortgage interest. JCT Insurance 21.2.1 Clauses may be added in to cover liability for damage to adjacent or surrounding property. Structural Warranty may be added on, as well as cover for missing or incomplete deeds. Although there are several more types, these are the insurance covers most used by UK builders.
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