Build your ideal insurance policy with construction insurance
Want to hear a construction joke? Sorry, we’re still working on it. Though what we do have is this roof-raising guide to construction insurance.
- As a minimum, you might want to have cover for tools and machinery, injury on or damage to the site and materials, public and employers’ liability
- You may also consider cover for business interruption, non-standard construction and professional indemnity
- Combine policies and compare insurance providers to potentially save money on your construction insurance
If you own a construction company, or work in the construction industry, have a look at this guide to construction insurance to help you figure out what kind of cover you might need.
We’ll even put in a few construction puns to keep you riveted.
Construction companies and construction workers have all sorts of projects – from bungalows to bridges, maintenance to site clearance.
No matter what project you’re working on, you want to make sure your business and workers have the right kind of protection, in case things don’t go to plan - as well as protecting members of the public.
Looking into business insurance is always an option. But let’s have a look at some of the types of insurance you might need that are specific to the construction industry.
Contractors' all risks cover
Contractors' all risks (CAR) insurance will protect you against claims for injury on or damage to the site and materials.
If you have contractors working for your construction company, it might be worth making sure they’re covered under a CAR policy.
Business disruption insurance
Business disruption insurance, also known as business interruption insurance, can cover loss of income caused by an unexpected interruption, like a fire or flood.
Equipment and tool insurance
Working in the construction industry means you and your employees will be handling equipment and tools regularly.
You can get insurance that protects your tools and equipment against loss, theft or damage.
Plant and machinery insurance
A study by Allianz found that around 90% of stolen plant equipment is never recovered. With many machines not being registered and the resale value of plant equipment being through the roof, they’re an attractive low-risk/high-reward draw for thieves.
With this in mind, if your construction business owns or uses any weapons of mass construction (like diggers, forklifts, cranes or bulldozers), it might be worth making sure you have insurance that covers them in the event of theft or damage.
Non-standard construction insurance
Do you take construction to another level by using non-standard materials or building unconventional structures?
If so, make sure your business will still be covered for any damage or theft of unusual building materials or equipment. It might be worth checking out some specialist business insurance.
Are you an unconventional homeowner? Is your home made out of hay and mud (good luck with that)? Is it an unusual shape? Check out our guide on non-standard home insurance for your quirky dwelling.
There are two main types of liability you may need in the construction industry, as well as a policy for the handling of data or other intellectual property.
Public liability will protect you if a member of the public is injured or their property damaged.
Employers’ liability is a legal requirement if you have one or more employees, and it covers your liability in the event of a work-related injury to your staff.
Professional indemnity for construction
This type of policy is useful if you offer advice, work with the intellectual property or handle the data of your customers, contractors, architects, and so on.
Getting cheaper construction insurance
To save yourself a bit of money on your construction insurance, why not try combining some of your policy options and compare different insurance providers to find the most suitable cover.
As long as you bear in mind the needs of your construction company, employees and clients, then you’ll get a good idea of what types of insurance best apply to your business – you’ll nail it!