Builders’ insurance

Why do builders need business insurance?

Construction is one of the UK’s largest industries, employing over 6% of the workforce. Business insurance is essential to protect to protect you against the consequences arising from accidents or damage.

If you as a builder cause accidental damage or injury to a third party, or if an employee is injured on the job, business insurance helps cover legal fees, compensation and repair costs. It can also cover damaged or stolen tools and ongoing work on construction sites.

Is it a legal requirement for builders to have business insurance?

Business insurance itself is not legally required in the UK. However, if you have employees, you must have Employers’ Liability Insurance under the Employers’ Liability Act 1969. Additionally, most clients, including local councils and businesses, may require insurance before hiring you.

How much does builders’ insurance cost?

The cost of builders' insurance varies based on several factors that will impact your premium:

• Type of cover
• Level of cover
• Type of work undertaken
• Size of the business

On average, AXA customers pay from £79^* per year for business insurance. Find out what your policy could costs by getting a quote below.

*10% of our customers paid from £7.00 for ten months between January and March 2025 after an initial deposit. Interest applicable. For more details see our terms & conditions.

With AXA you can pick which covers you want to take out to build your business insurance package. This way you’re only ever paying for the covers you need. Here are the main covers you may want to consider.

Public liability insurance for builders

Public liability is there to protect you from claims made against your business by third parties for claims arising from accidents or accidental damage. Here are a few scenarios where public liability insurance is an invaluable investment for your business:

• You’re clearing the ground for your work to begin and someone trips on the uneven ground and gets hurt
• ou’re working on an extension, but your work has weakened another part of the building. As a result, someone has gotten injured when part of a wall collapsed.

Employers' liability insurance for Builders

Employers’ liability is a legal requirement under the Employers’ Liability Act 1969 if there is anyone working for you. This doesn’t just apply if you have full and/or part-time employees, but also if you have:

• Laborers you hire
• Temporary staff, apprentices, and volunteers
• People taking part in work experience or training schemes

It covers you if anyone in your employ falls ill or gets injured as a result of working for you. It will help you cover the cost of compensation or medical costs.

Tools insurance for Builders

Tools insurance comes in two forms: Own plant tools and equipment and Hired-in plant tools and equipment. Both covers offer protection for tools against accidental damage and theft.

The main difference here is that own plant tools and equipment covers tools that your business owns, whereas hired-in plant tools and equipment covers any larger tools or pieces of equipment you’ve hired to use for a specific job.

Do self-employed builders need insurance?

Yes, self-employed builders still require insurance to protect their business and financial stability. Public liability insurance is particularly important to cover potential claims from clients and third parties.

However, if you work alone and do not employ anyone, you will not need Employers’ Liability Insurance as it’s only required for businesses with employees.