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Do I Need Public Liability Insurance as a Builder?
If you work as a builder, joiner, roofer, decorator or other construction tradesperson in the UK, having adequate public liability insurance is an absolute must to safely run your business according to regulations. But what exactly does public liability cover provide? And what happens if you fail to arrange appropriate protection?

This comprehensive guide explains everything UK builders and contractors need to know about securing essential public liability policies.

What Does Public Liability Insurance Cover?

Public liability insurance covers compensation claims if a member of the public suffers an injury or property damage because of your business activities. Policies protect you against legal costs and payouts if you are deemed liable.

Common examples of builder accidents covered include:

A roof tile falling from scaffolding you erected hits a pedestrian below.
A homeowner trips over your toolbox left in their hallway.
Brick dust released from your building work triggers respiratory issues for a neighbour.

UK policies usually provide cover of £1-5 million, meeting recommendations for builders working on domestic properties. This protects your personal assets like savings and property if sued.

Why Must Builders Specifically Hold Public Liability Insurance?

As a builder, joiner or contractor you perform intrusive works on other people's homes and commercial premises. This increases the likelihood of accidental damage compared to less invasive trades.

You also frequently operate large noisy machinery, use hazardous substances and generate excess waste - all risks to the public if mishandled. This necessitates liability cover.

Furthermore, public liability insurance is legally required for builders working self-employed or sub-contracted roles by:

Local authorities granting street works permits near roads and pavements. An absolute requirement.
Major construction project contract terms. Firms will not hire uninsured sub-contractors leaving themselves liable.

What Happens If I Don't Have Public Liability Insurance?

Neglecting to arrange public liability cover severely jeopardises your business through:

Legal Prosecution - Local authorities prosecute those undertaking notifiable building works without appropriate insurance under the Building Act 1984. Conviction risks heavy fines up to £5,000.

Void Insurance Claims - Builders' all risks and home improvement policies require underlying liability cover to remain valid. Accidents are not insured if uncovered. You personally bear full costs.

Losing Contracts - Serious buyers like commercial clients and homeowners ask for insurance details before hiring. Being uninsured leads them to pick competitors.

Unaffordable Legal Fees - Defending claims and paying awarded compensation without liability policies bankrupts most builders. Forced closure follows.

How Much Does Builders' Public Liability Insurance Cost?

Typical builders' public liability insurance costs between £50-£80 annually through trade policies from specialist brokers like Tradesman Saver. This covers £1 million of cover suited to most domestic jobs.

When quoting, insurers assess:

Your trade - some like roofers are deemed higher risk.
Years experience - new builders pay more.
Your claims history - previous issues increase prices.
Whether you work alone or employ others.

Follow best practice standards around risk assessments and method statements to secure affordable premiums.

Is Public Liability Insurance Compulsory?

There's actually no legal requirement for UK builders, roofers, painters or other tradespeople to have public liability cover in place. However, while optional, it's considered utterly essential for your protection. All prudent builders invest in a policy.

The key driver making coverage virtually compulsory is client demands. Large construction firms, housing developers and commercial managers mandatorily require all their sub-contractors to possess adequate public liability insurance before awarding tenders.

So while not a legal obligation, having public cover opens up essential revenue streams. Builders who opt out severely limit their opportunities to win new domestic and commercial projects. This gravely threatens business viability.

What's Defined as Adequate Cover?

While UK builders can pick their own public liability insurance levels, £5 million annual cover is generally considered the minimum. This handles most standard property damage and minor injury claims.

More risky projects like structural demolition may necessitate £10 million. Big brands like Persimmon Homes often demand minimum £8 million liability cover in contractor contracts too.

It's important policies match the scale of potential risk. Under-covering leaves an unpleasant liability shortfall for your business to handle alone if a major incident occurs. An extra £100-£200 annually typically doubles cover limits to prudent levels.

Can Sole Traders Get Public Liability Insurance?

Self-employed builders definitely need coverage too. While you won't have employers liability responsibilities, clients still demand public liability insurance before allowing you on-site as an extra layer of financial protection if anything goes wrong.

Sole trader policies are widely available from specialist trade insurers like Tradesman Saver . Expect around £50 annually for £5 million cover. This safeguards your personal assets like homes, vehicles and savings from any property damage or injury claim payouts.

Final Thoughts

While public liability insurance isn't legally compulsory for UK builders, having adequate cover in place is universally demanded by clients to work. It also greatly reduces the risk of financial disaster if a passerby gets injured or property gets damaged because of your completed work or ongoing building activities. Contact http://budtrader.com/arcade/members/patchcity76/activity/5396319/ like Tradesman Saver today to secure protection.

Key Takeaways - Why Builders Require Public Liability Insurance

Covers compensation claims if your work injures, impacts or damages third parties.
Legally required for permitted building jobs and by clients.
Fines and voided insurance policies hit uninsured tradesmen causing financial ruin.
Specialist brokers offer tailored policies from £50 yearly.

We hope this guide clarifies why no builder can afford being without public liability insurance! Stay covered.


My Website: https://www.tradesmansaver.co.uk/public-liability-insurance/