Builders Insurance
Protect your building business against on-site accidents, property damage claims and tool theft with cover designed for the construction trade.
Get in touchWhat is builders insurance?
Builders insurance is a comprehensive package of policies that protects building contractors and construction businesses from the wide range of risks involved in construction work. It typically includes public liability, employers liability, tools cover and contract works insurance.
Construction sites present significant risks, from scaffolding collapses to accidental damage to neighbouring properties. Having the right cover in place means a single incident will not threaten your business.
Cecil works with insurers who specialise in construction, so you get a policy priced for the work you actually carry out rather than a one-size-fits-all tradesperson product.
Public Liability
Covers third-party injury or property damage claims arising from your building work.
Employers Liability
Legally required if you employ anyone, covering workplace injury and illness claims.
Tools and Equipment
Covers the cost of replacing stolen or damaged tools and plant equipment.
Professional Indemnity
Protects against claims that your design work or advice caused a client financial loss.
Products Liability
Covers claims arising from products you supply or install as part of a building project.
Who needs builders insurance?
General builders
Undertaking a range of domestic and commercial construction work
House builders
Building new residential properties from the ground up
Extension specialists
Adding extensions, loft conversions and structural alterations
Renovation contractors
Carrying out refurbishment and restoration projects
Building subcontractors
Working under a main contractor on larger sites
Property developers
Building or converting properties for sale or rent
Licensing and accreditation for builders
Building contractors are not required to hold a formal licence, but work on residential properties is heavily regulated by Building Regulations, which cover structural safety, fire safety, and accessibility. Builders must either obtain Building Regulation approval before starting work or employ a registered person (such as NHBC, LABC, or similar scheme member) to sign off the work. Failure to comply is a criminal offence and can leave the property unmortgageable.
Most homebuyers, mortgage lenders, and local authorities require evidence that building work was either approved by Building Control or carried out by a registered person scheme member. Contracts often specify these requirements upfront, and insurance certificates are routinely requested by clients.
Public liability insurance is not a legal requirement but is essential in practice. Clients, mortgage lenders, and local authorities expect builders to carry substantial cover. Many larger clients and developers will not engage a builder without proof of insurance.
Insurance protects you against third-party claims arising from building defects or accidents on site. When combined with Building Regulations compliance or scheme membership, it demonstrates to clients and lenders that you operate to professional standards.
How much does builders insurance cost?
£250 – £600 per year for sole traders; building contractors with employees or those undertaking large commercial projects may pay £800 – £1,800
Real claims: what builders insurance covers
A builder's structural work on a house extension caused cracks in the neighbouring property's foundation, affecting the structural integrity of the property.
Public liability covered the full cost of remedial foundation work to the neighbour's property, specialist structural engineer reports, and legal costs incurred in negotiating the settlement.
£31,500 total — £24,000 foundation remedial works, £5,000 specialist structural reports, £2,500 legal and negotiation fees
A builder's employee fell from scaffolding while working on a roof replacement, sustaining multiple fractures and requiring surgery and extended rehabilitation.
Employers liability covered the employee's full compensation claim for pain and suffering, lost wages during recovery, medical treatment, and retraining costs.
£58,000 total — £48,000 compensation for injury and lost earnings, £7,000 medical and rehabilitation costs, £3,000 legal fees
A builder's defective brickwork on a property allowed water ingress, causing severe damp and structural damage that appeared two years after completion.
Professional indemnity covered the cost of remedial repairs (repointing and damp treatment), compensation to the homeowner for diminished property value, and the insured's legal defence costs.
£22,400 total — £15,000 remedial repairs, £5,400 diminished value compensation, £2,000 legal and expert fees
WHY CECIL
Built differently.
Construction-specific cover
Building work carries higher risks than most trades. Find insurers who understand construction, so your policy covers everything from groundworks to final fix.
Cover for your full scope of work
Whether you are building extensions, converting lofts or managing new builds, we find policies that reflect the range of work builders actually do.
Competitive quotes, fast
Tell us about your building projects and we will find options from construction insurers. No need to call around brokers or fill in lengthy proposal forms.
Claims handling you can rely on
Construction claims can be large and complex. Cecil works with insurers who have dedicated construction claims teams and a track record of settling claims fairly.
Common questions about builders insurance
Do builders need public liability insurance in the UK?
Public liability insurance is not a statutory legal requirement for builders, but in practice it is indispensable. Clients, homeowners, housing associations, and main contractors will almost always require proof of cover before allowing work to begin. Local authorities managing public contracts specify minimum cover levels in their procurement documents. Without it, a builder faces the full financial exposure of a third-party claim — structural damage to a neighbouring property, a member of the public injured by falling debris, or a customer claiming for serious defects in completed work. These claims can easily reach five or six figures. Speak to an FCA-authorised broker specialising in construction to understand the appropriate level for your business type. The overwhelming consensus in the industry is that operating without it is commercially untenable. Most experienced builders treat it as a non-negotiable cost of doing business.
What level of public liability do builders need?
The right level of public liability cover depends on the scale and nature of the work you carry out. Most sole traders working on domestic extensions, renovations, or refurbishments start with £1m to £2m. However, if you work on commercial buildings, take on main contractor roles, or operate under framework agreements with housing associations or local authorities, the required minimum is typically £5m. Many larger clients specify £10m as a condition of contract. The rationale is straightforward: structural work on a large property can cause damage costing hundreds of thousands of pounds to remediate, and a single major claim against an inadequately covered builder can be financially catastrophic. Cecil helps you compare options from specialist construction insurers and choose a level that reflects your actual contract requirements. Review your level of cover each time you take on a significantly larger contract.
Does builders insurance cover subcontractors?
Coverage for subcontractors varies significantly between insurers, so it is one of the most important things to clarify before placing your policy. Labour-only subcontractors — individuals who work under your direction using your materials and tools — are often automatically included within the scope of your public liability policy. Bona fide subcontractors who supply their own materials, set their own methods, and are responsible for their own output are a different matter; most insurers expect these individuals to hold their own public liability and employers liability cover. If you regularly engage specialist trades — electricians, groundworkers, roofers — always request their insurance certificates before work begins. If a claim arises from a subcontractor's work that you are managing, the insurer will investigate whether the liability rests with your policy or theirs, and gaps in coverage can be costly.
Do I need contract works insurance as a builder?
Contract works insurance — sometimes called contractors all-risk insurance — is strongly recommended for builders who bear contractual responsibility for the value of work in progress and materials on site. Standard public liability insurance covers your liability to third parties but does not protect the works themselves against events such as fire, flood, storm damage, vandalism, or theft. If a partially built extension is damaged by fire before handover, contract works insurance covers the cost of rebuilding what has already been completed. The need is greatest on larger projects where significant labour and materials are already committed, and on projects in exposed locations vulnerable to weather. Check your building contract carefully to establish whether the employer or main contractor holds contract works cover for the project — if not, you should arrange it yourself.
Do I need Building Regulations approval for every job I do?
Most substantive building work — extensions, loft conversions, structural alterations, new drainage, and changes to electrical or heating systems — requires Building Regulations approval under the Building Act 1984. Minor repair and maintenance work, like-for-like replacements, and certain small outbuildings may be exempt, but the exemptions are narrower than many builders assume. Failing to obtain approval when required is a serious issue: the local authority can require the work to be exposed, tested, and potentially demolished if it does not comply. Unapproved work also makes properties difficult to sell, as mortgage lenders require evidence of building control sign-off. If in doubt, always check with your local authority's building control team before starting. Your insurer will want to know that your work complies with Building Regulations, and non-compliant work may affect your ability to claim.
What happens if Building Control later finds a defect in my work?
If Building Control issues a notice of non-compliance or a formal enforcement notice, you have a legal obligation to remediate the defective work within the time specified. This can be expensive — particularly for structural defects or hidden work that must be exposed and reinspected. Professional indemnity insurance can cover the costs of addressing these defects, including the cost of remedial work and any claims from the property owner for inconvenience, diminished property value, or financial loss resulting from the defect. You must notify your insurer immediately when you receive any notice or formal communication from Building Control; delay in notification can prejudice your ability to claim. Keep all correspondence, site records, and completion certificates meticulously throughout the project, as these will be central to any investigation. Do not attempt to conceal or remediate defects before notifying your insurer, as this can affect the claim.
Am I covered if I employ subcontractors for specialist work?
If you engage subcontractors to carry out specialist elements of a project — electrical work, plumbing, roofing, groundworks — the insurance position depends on how those contractors are classified and what cover they hold. Labour-only subcontractors working directly under your supervision may be covered by your own employers liability policy as deemed workers, even if not formally employed. Bona fide specialist subcontractors managing their own work should hold their own public liability and employers liability insurance, and you should request and retain copies of their certificates. If a subcontractor's work causes a third-party claim, your insurer will investigate whether the loss was caused by your supervision or their independent actions. Always obtain insurance certificates from specialist trades before work starts, and include insurance requirements in your written subcontract terms. Retain these certificates with your project records.
Does public liability cover damage during demolition or excavation?
Demolition and excavation are covered by most builders public liability policies, but these are high-risk activities that some insurers treat with additional scrutiny or apply restrictions to. Demolition carries significant risks of structural collapse, falling debris, and damage to adjacent properties or underground services. Excavation near existing structures creates risks of subsidence and service damage. You should confirm explicitly with your chosen insurer that demolition or groundworks are included within your cover, and at what level. If you carry out substantial demolition, structural groundworks, or work near live utilities as a regular part of your business, you may need specialist insurers who cover these activities as a primary risk rather than an incidental element of general building work. A specialist construction broker can identify appropriate cover for high-risk groundwork or demolition businesses. Method statements and risk assessments also support your position if a claim arises.
What if a property defect is discovered years after I completed the work?
Professional indemnity insurance for builders typically operates on a claims-made basis, meaning the claim is covered by the policy that is active when the claim is first notified, not the policy that was in force when the work was completed. This makes it critical to maintain continuous professional indemnity cover, because defects in building work — particularly structural issues, water ingress, or thermal bridging in insulation — can take years to manifest. If you complete a renovation and the client notices damp penetration two years later attributing it to your brickwork or pointing, your current policy would handle the claim provided cover is still live. If you retire or cease trading, discuss run-off cover with an FCA-authorised broker to ensure older completed work remains protected for an appropriate period after the policy ends.
Interested in Builders insurance?
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