Contractors
We have substantial experience arranging insurance for all kinds of contractors, from builders, bricklayers and engineers to electricians, tilers and plumbers.
Quick Summary
- Covers everything a working contractor needs in one annual policy: Public liability, employers’ liability, contract works, plant and tools — all under a single, annually renewable programme designed for contractors who work across multiple sites throughout the year.
- Employers’ liability is a legal requirement: If you employ staff or engage labour-only subcontractors, you are legally required to hold a minimum of £5 million employers’ liability cover. We ensure you are compliant from day one.
- Public liability limits are often contractually driven: Many principal contractors and local authorities require £5 million or £10 million. We check your contracts and set the right limit before you start on site.
- Trade-specific cover matters: A general policy is rarely sufficient. We tailor cover to your specific trade — whether you work in groundworks, electrical, plumbing, roofing, or fit-out — so the right risks are covered and exclusions are minimised.
What is Contractors Insurance?
Contractors Insurance is an annually renewable package policy designed to protect tradespeople, specialist subcontractors, and main contractors against the range of risks that arise from working on building and civil engineering projects. At its core, it combines the liability covers required to operate lawfully — public liability and employers’ liability — with contract works cover (also known as contractors all risks), which protects the physical works under construction against loss or damage. Together, these form a coherent programme that can be tailored to reflect the trades you carry out, the contract values you work to, and the contractual obligations placed on your business.
Unlike a single-trade package, a contractors insurance programme is flexible enough to cover businesses operating across multiple trades and contract types simultaneously. It is structured as an annual policy, which means it covers every qualifying project your business undertakes during the year without the need to arrange separate cover for each contract. Consequently, it is the standard insurance arrangement for building contractors of all sizes — from sole traders to national contractors — and is designed to meet both statutory obligations and the insurance requirements typically found in JCT, NEC, and bespoke construction contracts.
What Does Contractors Insurance Cover?
The exact scope of a contractors insurance programme depends on the trades involved, the maximum contract value, and the specific risks your business faces. The table below outlines the principal cover sections we structure for most contracting businesses.
| Cover Section | What It Protects | Daines Kapp Advice |
|---|---|---|
| Public Liability | Claims for bodily injury or property damage made by third parties — clients, members of the public, or other trades on site — arising from your work activities. | Most principal contracts require £5m or £10m. We confirm the required limit before you tender or mobilise on site. |
| Employers’ Liability | Claims from employees and labour-only subcontractors who are injured or become ill as a result of their work. Legally required at a minimum of £5 million. | We confirm that labour-only subcontractors are correctly classified and covered, and that the policy schedule accurately reflects your workforce. |
| Contract Works (CAR) | Physical loss or damage to the works under construction — including materials on site, in transit, and temporarily off site — from fire, flood, storm, theft, vandalism, and accidental damage. | We set the maximum contract value correctly so that all your projects fall within the policy limit, and we include a contract price uplift to prevent underinsurance. |
| Own Plant & Tools | Loss or damage to plant, machinery, and hand tools owned by the business — on site, in transit, and stored overnight in vehicles or at yard. | We check that overnight storage in unattended vehicles is covered and that the sum insured reflects the current replacement value of your plant register. |
| Hired-In Plant | Liability for loss or damage to plant hired from a third party — including excavators, scaffold, hoists, and specialist equipment — while in your care. | Plant hire agreements typically impose strict liability for damage. We confirm that hired-in plant cover is included and that the limit is adequate for the equipment you use. |
| Non-Negligent Liability | Third-party claims for damage to adjacent properties arising from the nature of the works — collapse, subsidence, vibration, or weakening of support — where no fault on your part is alleged; required under JCT Clause 6.5.1 and NEC equivalents | Standard public liability excludes these claims. Where your contract documentation requires it, we arrange a specific non-negligent liability extension and confirm all contractual insurance obligations are met before the policy is bound. |
Who Needs Contractors Insurance?
Contractors insurance is appropriate for any business that carries out physical building, civil engineering, or specialist trade work on behalf of clients. This includes general building contractors, groundworks and civils contractors, roofing and cladding contractors, mechanical and electrical contractors, plumbing and heating engineers, joiners and fit-out contractors, painters and decorators, and specialist trades such as steelwork erectors, scaffolding contractors, and demolition contractors. Whether you operate as a sole trader, a small regional firm, or a large main contractor, the principle is the same: a single annual programme covers all your qualifying contracts without repeated policy arrangement.
Bona fide subcontractors — those who supply their own labour, plant, and materials — are typically required to hold their own public liability and employers’ liability insurance under the terms of the main contract. Contractors insurance meets this requirement and, importantly, can be structured to include non-negligent liability cover (JCT Clause 6.5.1) where specified in the contract documentation.
Why Choose Daines Kapp for Contractors Insurance?
The construction sector presents insurance risks that general commercial insurers regularly misunderstand or restrict. Policy wordings that appear adequate at first glance often contain exclusions for specific trades, height restrictions, hot works limitations, or inadequate contract value limits that only become apparent when a claim arises. As an independent broker, we have access to specialist construction markets — including Lloyd’s of London syndicates — that provide broader cover for higher-risk trades, and we compare wordings rather than simply presenting the cheapest premium. When a claim arises on site, we manage the notification process and represent your interests throughout.
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Frequently Asked Questions About Contractors Insurance
What trades are covered under contractors insurance?
Contractors insurance can be arranged for virtually any building or civil engineering trade, including general building, groundworks and civils, roofing, cladding, mechanical and electrical, plumbing and heating, joinery, painting and decorating, plastering, tiling, scaffolding, steelwork, and demolition. The key requirement is that the policy accurately describes the trades carried out, since insurers rate premium and set conditions based on the nature of the work. We ensure the activities schedule on your policy reflects everything your business does — including incidental trades — so that cover is not prejudiced by an undisclosed activity.
Is employers’ liability insurance compulsory for contractors?
Yes. Under the Employers’ Liability (Compulsory Insurance) Act 1969, any contractor who employs staff — including labour-only subcontractors — must hold employers’ liability insurance with a minimum limit of £5 million. Failure to hold valid cover is a criminal offence and carries a fine of up to £2,500 per day. Labour-only subcontractors are treated as employees for the purposes of employers’ liability because they work under your supervision and control, even if they invoice you on a self-employed basis. We confirm correct classification at policy inception to ensure you are legally compliant.
What is the difference between contract works insurance and public liability for contractors?
Contract works insurance (also known as contractors all risks or CAR) covers physical loss or damage to the works being constructed — the materials, the partially completed structure, and temporary works such as formwork or falsework. Public liability covers claims made by third parties who are injured or suffer property damage as a result of your work activities. Both covers are needed: contract works protects your own financial exposure if the works are damaged or destroyed before handover; public liability protects you against claims from others, including the client, neighbouring property owners, and members of the public. The two are almost always arranged together as part of a contractors programme.
What is the maximum contract value on a contractors policy?
The maximum contract value is the most important rating factor on a contractors all risks policy. It defines the maximum value of any single contract that the policy will cover, and it must reflect the largest contract your business is likely to undertake in the policy year. If you undertake a contract that exceeds the maximum contract value stated on the policy, that contract may not be covered, or the policy may respond only up to the stated limit. We set the maximum contract value correctly at inception and review it at renewal to ensure it keeps pace with your business growth. We also confirm that the policy includes an automatic reinstatement provision so that the limit is restored after a claim.
Does contractors insurance cover working at height?
Most contractors all risks and liability policies include cover for working at height as a standard provision, subject to compliance with the Working at Height Regulations 2005 and reasonable safety precautions. However, some policies impose height restrictions — for example, excluding work above 10 or 15 metres — or require specific warranties around the use of scaffolding, harnesses, or MEWP equipment. Roofing contractors, scaffolding erectors, and steelwork contractors should pay particular attention to the height conditions in their policy. We identify and address any height-related conditions at placement, and we source insurers who provide the broadest cover for high-level work.
Can contractors insurance include non-negligent liability cover?
Yes. Non-negligent liability cover (required under JCT Clause 6.5.1 and equivalent NEC provisions) protects against third-party claims for damage to adjacent properties that arise from the inherent nature of the works — even where no negligence on your part can be established. Standard public liability policies exclude such claims, and the exclusion is often overlooked at tender stage. Where the contract documentation requires it, we arrange a specific non-negligent liability extension as part of your contractors programme. We review your contract insurance schedule before the policy is bound to confirm that all contractual insurance obligations are met.
