Public Liability for Builders Insurance
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What Is Builders Insurance?
Builders insurance is a package of cover that protects builders and construction workers against injury claims, property damage, tool theft, and legal costs.
Most builders buy a combined policy bundling public liability, employers’ liability, and tools cover. It sits within the broader tradesman insurance category alongside trades like roofers, scaffolders, and bricklayers.
Construction is one of the highest-risk industries in the UK, with the HSE recording 51 fatal injuries during 2023/24. For most builders, the right cover is the difference between surviving a claim and closing your business.
How To Compare Builders Insurance Quotes
You can compare builders insurance quotes from trusted UK insurers online in under five minutes.
Enter your trade and business details.
Share your trade type, annual turnover, number of employees, and the cover levels you need. The form takes around two minutes.
Compare quotes side by side.
We show you prices from multiple FCA-authorised UK insurers on one screen. Each quote shows what is covered, the excess, and the annual premium.
Check policy details before you buy.
Look beyond the headline price. Check the excess, claims process, and whether the policy covers your specific trade activities.
Buy online and get covered.
Once you have chosen, complete your application directly with the insurer. Some policies start the same day.
What Does Builders Insurance Cover?
A builders insurance policy typically combines several covers into one package. Public liability, employers’ liability, and tools cover form the core for most builders.
Public liability insurance
Public liability insurance pays compensation and legal costs if a member of the public is injured or their property is damaged because of your work. Most builders choose between £2 million and £5 million of cover.
If a homeowner trips over materials on site and breaks their wrist, your PLI covers their medical costs and your legal fees. Many main contractors require proof of cover before you step on site.
Employers’ liability insurance
Employers’ liability insurance covers claims from employees who are injured or become ill because of their work. It is a legal requirement if you employ anyone, including apprentices and casual labourers.
The Employers’ Liability (Compulsory Insurance) Act 1969 sets the minimum at £5 million, but most policies offer £10 million as standard. Claims can surface years after the original injury.
Tools and equipment cover
Tools and equipment cover replaces or repairs your tools if they are stolen, lost, or damaged. Most policies protect tools in your van, on site, and at home.
Check whether your policy covers tools left in an unattended vehicle overnight. Some insurers exclude this without approved van security.
Contract works insurance
Contract works insurance protects the physical work you are carrying out if it is damaged by fire, flood, theft, or vandalism before handover. It also covers materials stored on site or in transit.
Cover is usually based on the maximum contract value you take on. If your largest job is worth £100,000, set your contract works limit at or above that figure.
Without it, you would have to redo damaged work at your own cost. On larger builds, that can run into tens of thousands of pounds.
Hired-in plant cover
Hired-in plant cover protects you if hired equipment such as excavators, cement mixers, or scaffolding is damaged or stolen while in your care. Hire agreements typically make you liable for the full replacement cost.
A stolen excavator can cost £20,000 or more to replace. Without hired-in plant cover, that cost comes directly from your business.
Professional indemnity insurance
Professional indemnity covers claims from errors in design advice, project management, or material specifications. Not every builder needs it, but it is worth considering if you go beyond hands-on trade work.
If you design loft conversions or specify structural elements, a client could claim against you if the design fails. PI cover pays the legal costs and any compensation awarded.
| Cover type | What it protects | Typical limit | Required? |
| Public liability | Third-party injury or property damage | £2M to £10M | No, but contractually required |
| Employers’ liability | Employee injury or illness | £5M to £10M | Yes, if you employ anyone |
| Tools & equipment | Theft, loss, or damage to tools | £2,000 to £15,000 | No |
| Contract works | Damage to work in progress | Max contract value | No |
| Hired-in plant | Hired equipment in your care | Hire agreement value | No |
| Professional indemnity | Errors in design or advice | £100K to £1M | No |
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What Is Not Covered By Builders Insurance?
No builders insurance policy covers everything, so understanding the exclusions before you buy prevents surprises when you need to claim.
Deliberate damage and poor workmanship
Intentional damage and reckless behaviour are never covered. If you knowingly cut corners on safety, your insurer will not pay out.
Poor workmanship is separate from accidental damage. If a wall cracks because the mortar mix was wrong, that is a quality issue, not an insurable event.
Work outside your declared trade
If you tell your insurer you do domestic extensions but then take on commercial demolition, your policy may not respond. Always update your insurer when your scope of work changes.
Height work, hot work, and excavation are common examples of activities that need to be declared. Taking on undeclared high-risk work could void your entire policy.
Asbestos-related claims
Most standard builders policies exclude asbestos-related claims entirely. If you work on pre-2000 buildings, check whether your policy includes asbestos cover or offers it as an add-on.
Asbestos removal and disposal require specialist licensing. If you disturb asbestos without the correct cover, your insurer will not pay any resulting health claims.
Vehicles and personal property
Your van, car, and personal belongings are not covered by builders insurance. You need separate commercial vehicle insurance for work vehicles.
Some builders assume tools stolen from a van are covered under their tools policy, but the van itself is not. Check both policies to avoid gaps.
Gradual wear and deterioration
Damage that develops slowly over time is not covered. If a roof leaks because of gradual weathering rather than a sudden storm, your insurer will treat it as a maintenance issue.
Professional advice without PI cover
If you give design advice or specify materials without professional indemnity cover, any resulting claim falls outside your public liability policy. These are treated as professional errors, not accidents.
Who Needs Builders Insurance?
Any builder working on UK construction sites needs builders insurance, whether you are a self-employed sole trader or a limited company managing a team.
Self-employed builders
Self-employed builders typically need public liability and tools cover at a minimum. Even without employees, you are personally liable if someone is injured or their property is damaged by your work.
Most sole traders choose £2 million of public liability for domestic work. If you take on commercial contracts, expect clients to ask for £5 million.
Builders with employees
If you employ anyone, employers’ liability insurance is a legal requirement under the government’s guidance. Failing to comply carries a fine of up to £2,500 for each day without cover.
Subcontractors
If you hire subcontractors who are not genuinely self-employed, your insurer may treat them as employees. Check your policy wording to confirm how subcontractors are classified.
Ask each subcontractor for a copy of their own insurance certificate. If they cannot provide one, you may need to extend your employers’ liability to cover them.
Specialist and high-risk trades
Firms taking on large construction projects often need higher cover limits and broader policies. These jobs carry more liability because of larger teams, subcontractors, and higher contract values.
| Business type | Public liability | Employers’ liability | Tools cover |
| Self-employed (domestic) | £2M minimum | Not required | Recommended |
| Self-employed (commercial) | £5M minimum | Not required | Recommended |
| Small firm (1–5 employees) | £5M minimum | Legal requirement | Yes |
| Larger firm (5+ employees) | £5M to £10M | Legal requirement | Yes |
How Much Does Builders Insurance Cost?
Most builders pay between £200 and £800 per year for a combined insurance package, depending on their trade, turnover, team size, and claims history.
| Cover type | Typical annual cost | Notes |
| Public liability (£2M) | £80–£200 | Sole traders at the lower end |
| Public liability (£5M) | £120–£350 | Standard for most contract work |
| Public liability (£10M) | £200–£500 | Required by some local authorities |
| Employers’ liability (£10M) | £100–£300 | Depends on employee count |
| Tools cover (£5K) | £50–£120 | Higher for power tools |
| Contract works | £80–£250 | Based on max contract value |
| Combined package | £200–£800 | Bundling saves 10 to 20% |
See our guide to public liability insurance costs for a wider breakdown of pricing across different trades and cover levels.
A self-employed builder doing domestic extensions with £2 million PLI and £5,000 tools cover might pay around £250 per year. A firm with five employees, £5 million PLI, and £10 million ELI could pay closer to £700.
What affects your premium
Your annual turnover is the single biggest factor affecting your premium. Higher-risk trades like roofers pay more because of the height risk involved.
Your claims history, team size, and postcode also factor in. Five years without a claim can reduce your premium by 10 to 15%.
Cost by trade type
| Trade | Risk level | Typical combined premium |
| General builder | Medium | £200–£450 |
| Roofer / scaffolder | High | £350–£700 |
| Bricklayer | Medium | £180–£400 |
| Painter & decorator | Low | £100–£250 |
| Groundworker | High | £300–£600 |
| Carpenter / joiner | Low-medium | £120–£300 |
Scaffolders and groundworkers face the highest premiums because of height and excavation risks. Bricklayers and carpenters sit in the middle range with moderate risk profiles.
How To Save Money On Builders Insurance
You can reduce the cost of builders insurance by comparing quotes, bundling covers, and keeping a clean claims record.
Bundle your covers
Buying public liability, employers’ liability, and tools cover as a combined package typically saves 10 to 20% compared to buying each one separately. Most insurers offer a discount for bundling.
Increase your voluntary excess
Raising your excess from £100 to £250 can cut your premium by 5 to 10%. Only do this if you can comfortably cover the excess from cash flow.
Keep a clean claims history
Five years without a claim can reduce your premium by 10 to 15%. Avoid making small claims where the premium increase would outweigh the payout.
Invest in site security
Fitting approved locks on your van, using CCTV on site, and storing tools securely can qualify you for lower premiums. Insurers reward builders who reduce theft risk.
Pay annually
Monthly instalments typically add 8 to 12% to the total cost. If you can afford the lump sum, annual payment always works out cheaper.
Match your cover to your actual risk
If your tools are worth £3,000, there is no point paying for £15,000 of tools cover. Equally, choosing too little cover leaves you exposed if something goes wrong.
Compare at every renewal
Loyalty rarely pays with insurance. Comparing quotes each year takes five minutes and can save you 10 to 20% on your renewal premium.
Tool theft costs UK construction firms millions each year. A £200 van safe could prevent a £5,000 claim and keep your premium down at renewal.
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Frequently Asked Questions
Employers’ liability insurance is a legal requirement if you employ anyone, including apprentices and labour-only subcontractors on your payroll. Public liability is not legally required, but most clients demand proof of cover before letting you on site.
Most builders need at least £2 million for domestic work. If you take on commercial contracts, many main contractors and local authorities require £5 million or £10 million.
It depends on how your insurer classifies them. If subcontractors are not genuinely self-employed with their own insurance, your insurer may treat them as employees and require employers’ liability cover for them.
Yes, if the damage is caused by your work rather than by deliberate action or poor workmanship. Accidental damage to a customer’s home during a build is a standard PLI claim.
Self-employed builders do not legally need public liability insurance, but winning work without it is very difficult. Most homeowners, contractors, and letting agents ask for proof before hiring.
Public liability covers third-party injury and property damage caused by your building work. Our guide to what public liability insurance is explains the full scope of cover and who needs it.
You can compare quotes and buy a policy online in under ten minutes. Some insurers offer same-day cover, while others start from a date you choose.
No, builders insurance does not cover vehicles. You need separate commercial vehicle insurance for your van, car, or any work vehicles.
Yes, although your premium will be higher. Declare all previous claims honestly on your application, as failing to disclose them could void your policy if you need to claim.
The fine is up to £2,500 for each day you trade without cover if you employ anyone. Inspectors from HMRC and the HSE can check your certificate at any time.
Add up the replacement cost of all your tools and equipment, then choose the nearest cover level above that total. Typical limits range from £2,000 to £15,000.
Public liability insurance covers injury claims from height-related accidents on your sites. However, your insurer expects you to follow the Work at Height Regulations 2005 and use proper safety equipment.
Public Liability Insurance Guides
