Why Insurance For Builders And Tradesmen Is So Important

I have been a self-employed painter and decorator for over 20 years and along the way I have learnt many things about running a successful business.

One important lesson I have learnt is to do everything properly and not to cut corners because it might save you a few pounds. It quite honestly is not worth it. It will always at some point come and bite you in the future so if you are going to run your own business either as a limited company or by being self-employed get it right and be professional. Your customers, and employees will always appreciate somebody that has everything in place and runs a professional business.

One part of running a business that many people try to take short cuts on is having all the correct business insurance in place. I also think it’s vital to compare business insurance to get a wide range of quotes, to then make an informed decision. Honestly, it is simply not worth cutting corners on insurance within your business.

A very good example of business insurance is when it comes to the building industry. If you run a building company it is very important to have Public liability insurance and Professional Indemnity Insurance because if a claim is made against your business and you don’t have the right insurance in place you might struggle to keep operating your business because of the financial strain of meeting the costs of a claim when you have no insurance.

If you are a builder why would you need Builders Indemnity insurance? Well, let me tell you.

If you are a builder the actual act of building a construction is not just the physical act of building. There will also be advice to the clients, also all the drawings and making sure the calculations of the specifications of the build are correct.

Unfortunately there can sometimes be mistakes without you realising it and if don’t act appropriately to this situation, it could result in your customer having a financial loss, or worse still an injury or in the worst case scenario death which could all be caused by an error you have made. This is where insurance will be vital if a claim is made against you. This is because the claim could be so large that if you don’t have insurance your business won’t have enough money to pay out for losses or damage to your customer, which of course could end up with you in financial disaster and your reputation as a professional builder will also be ruined and your ability to make a living will be finished.

When looking for builders insurance it’s important that you look for a company such as Construct A Quote who will be able to help you get the right builders insurance for your company.

A couple of important parts of insurance cover you will require when you own a building company are.

  1. Public Liability Insurance

Public liability insurance is so important as it covers the wider aspects of a construction job whilst the building work is going on. You need to have insurance cover for the general public and anybody that may have reason to visit the building site. In the worst case scenario that something did happen and somebody is injured or damage is caused to anybody’s property you may to have to pay out and this could put your business under pressure financially. Public liability insurance claims can reach up to one million pounds, and that’s not the kind of money any of us have handy so if you are held by a duty of care claim you need to be covered.

  1. Employers Liability Insurance

When you have a construction building company the likelihood is you are going to be employing a number of people. Something that you have to do by law is make sure you have employers liability insurance. If an employee is injured or becomes ill or contracts an illness that is a direct cause from working for you, you will be liable to pick up the cost should a claim be made against you.

Employers liability insurance has to be arranged. This is an act of law which is explained here Liability (Compulsory Insurance) Employers’ Act 1969. You have a legal obligation to make sure you have a minimum of £5 million pounds of cover should an employee bring a successful claim against you.

You could face a fine of up £2,500 for every day that you don’t have cover. Displaying your insurance certificate is very important too. If you don’t you could be fined up to £1,000.

It’s important for both yourself to have adequate insurance cover, so finding a company that provides easy and quick online quotes with a proven track record is a must, I would recommend constructaquote.com for any employers liability insurance quotes. and more importantly that you show a duty of care for the people working for you and that also includes anybody that may be sub-contracting to you.

Running a well oiled building/ construction involves making sure you put all the necessary insurance in place not only for your own peace of mind in case somebody makes a claim against you and the worst happens which bankrupts you, but also to make sure you are looking after your employees best interests.

None of us can see into the future and sometimes mistakes happen that are beyond our control so it’s important that for all possible scenarios that you have in place all the right insurance. To run a successful and professional business.

Do you run your own company?

What are your experiences of insurance for your company?

I would love to hear in the comments below.

This is a collaborative post.


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