Construction Insurance
Specialist Insurance for Construction Companies, Contractors & Developers
Construction businesses face complex risks every day. From managing building sites and subcontractors to protecting equipment, materials and work in progress, having the right insurance is an important part of running a successful construction business.
At Edison Ives, we arrange specialist Construction Insurance for contractors, developers and construction companies throughout the UK.
Whether you’re a small independent builder, an established main contractor or a property developer managing multiple projects, we can help you explore insurance suited to your activities and contractual responsibilities.
Request a Construction Insurance Quote
Looking for insurance for your construction company or upcoming building project?
Tell us about your business, the work you undertake, your contract values, employees, subcontractors and the insurance requirements of your projects.
Our team will review your circumstances and approach appropriate insurance markets.
What Is Construction Insurance?
Construction Insurance is a broad term covering several types of insurance designed to protect businesses and projects within the construction industry.
Depending on your circumstances, this can include liability insurance, contract works insurance, contractors all risks insurance, plant and equipment cover, and specialist policies for particular construction projects.
Construction insurance arrangements should reflect the nature of the work, project values, contract conditions and the responsibilities of everyone involved.
At Edison Ives, we help construction businesses understand these requirements and explore suitable insurance solutions.
What Does Construction Insurance Cover?
Construction businesses may require several types of insurance to address their different exposures.
Public Liability Insurance
Can provide protection against certain third-party injury or property damage claims arising from construction activities.
Employers’ Liability Insurance
Provides protection against certain employee injury or illness claims. Generally compulsory for businesses employing staff, subject to exemptions.
Contractors All Risks Insurance
Can provide cover for insured construction works, materials and other specified project-related property risks.
Contract Works Insurance
May cover insured work in progress against specified events such as fire, theft, storm and accidental damage.
Own Plant Insurance
Can protect insured construction plant and machinery owned by your business against specified loss or damage.
Hired-In Plant Insurance
May provide protection against certain liabilities for loss of or damage to hired construction equipment.
Tools & Equipment Insurance
May cover insured tools and specialist equipment against specified theft or damage risks.
Professional Indemnity Insurance
Can provide protection against certain claims arising from negligent design, specification or professional advice.
Existing Structures Insurance
Specialist arrangements may be required to insure existing buildings or structures affected by construction works.
Latent Defects Insurance
Specialist policies may be available for certain defects in completed buildings, subject to underwriting and policy terms.
Important: These covers are not automatically included in a single policy. The insurance required will depend on the business, project and contractual arrangements.
Construction Insurance for Different Businesses
We can explore insurance arrangements for a wide range of businesses operating within the construction industry.
Main Contractors
Insurance for businesses responsible for delivering construction projects and managing subcontractors.
Property Developers
Project insurance considerations for residential, commercial and mixed-use developments.
Building Contractors
Insurance for businesses undertaking general building, renovation, extension and refurbishment work.
Specialist Subcontractors
Cover considerations for subcontractors working within larger construction projects.
Civil Engineering Contractors
Specialist insurance for certain infrastructure, groundwork and civil engineering activities.
Commercial Construction Companies
Insurance for contractors involved in offices, industrial buildings, retail premises and other commercial projects.
Residential Construction
Insurance considerations for housebuilding, property conversions and residential developments.
Refurbishment Contractors
Insurance for businesses working on existing buildings, including projects involving occupied premises.
Contractors All Risks Insurance
Contractors All Risks Insurance, often referred to as CAR Insurance, is an important consideration for many construction projects.
It can provide protection for insured construction works and materials against specified physical loss or damage during the construction period.
For example, a project could suffer significant damage following a fire, storm or theft before the work is completed.
Depending on the policy, Contractors All Risks arrangements may include contract works, materials, plant and other specified sections.
The scope of cover, contract values, site conditions, testing and commissioning provisions, and policy exclusions should be reviewed carefully.
Contract Works Insurance
Contract Works Insurance is designed to protect insured building work in progress against specified loss or damage.
This can be particularly important where contractors are responsible for materials and work before a project is handed over.
When arranging cover, businesses should consider the maximum contract value, project duration, materials stored on site and contractual responsibility for the works.
Existing buildings and structures are not necessarily covered under standard contract works insurance and may require separate arrangements.
Insurance for Construction Subcontractors
Subcontractors play an important role in construction projects, but their insurance requirements can differ depending on the nature of their work and their contractual arrangements.
Insurers may distinguish between labour-only subcontractors and bona fide subcontractors.
Labour-only subcontractors may need to be included within relevant employee or wage declarations, while bona fide subcontractors may be expected to maintain their own liability insurance.
Principal contractors should also consider any policy conditions requiring subcontractor insurance checks.
Correctly declaring subcontractor arrangements is important when obtaining quotations and maintaining cover.
Construction Contracts and Insurance Requirements
Construction contracts often contain detailed insurance obligations that can affect which policies are needed and who must arrange them.
These may include:
- Minimum Public Liability and Employers’ Liability Insurance limits.
- Requirements to insure the contract works.
- Joint names insurance provisions.
- Insurance obligations relating to existing structures.
- Professional Indemnity Insurance for design responsibilities.
- Specified cover for hired plant or specialist activities.
- Requirements under JCT or other construction contract forms.
The insurance responsibilities can vary significantly between contracts. A standard policy should not be assumed to satisfy every contractual obligation.
Our team can help you consider these requirements when arranging construction insurance.
Common Construction Insurance Risks and Exclusions
Construction insurance can be complex, particularly where projects involve higher-risk activities or existing buildings.
Areas requiring careful attention may include:
Work at Height
Roofing, scaffolding and other elevated work may be subject to insurer restrictions or specialist terms.
Hot Works
Activities involving heat, flames or sparks may be subject to specific risk management conditions.
Excavation & Groundworks
Underground services, excavation depth and ground conditions can affect insurance requirements.
Existing Structures
Construction work involving existing buildings can create insurance obligations that need separate consideration.
Defective Workmanship
The cost of correcting defective work is commonly excluded, although resulting damage may be treated differently under particular policies.
Testing & Commissioning
Testing, commissioning and handover stages may be subject to special policy terms or limitations.
It is important to review insurer endorsements and ensure the policy accurately reflects the activities being undertaken.
Getting Construction Insurance Sums Insured Right
Accurate sums insured are essential when arranging construction insurance.
For contract works, the amount insured should reflect the appropriate contract value and any additional amounts required by the policy or construction contract.
For plant, tools and equipment, the correct basis of valuation should be considered, including whether replacement or indemnity values apply.
Underinsurance can lead to claim settlement difficulties, including potential reductions where an average condition applies.
Our team can help you understand the information insurers require when assessing your construction risks.
How Much Does Construction Insurance Cost?
Construction Insurance premiums depend on the size, nature and complexity of your business or project.
Type of Construction Work
Residential, commercial, industrial and specialist construction activities can carry different levels of risk.
Contract Values
The value, duration and complexity of construction projects can influence insurance costs.
Turnover & Workforce
Annual turnover, payroll, employee numbers and subcontractor arrangements may affect premiums.
Plant & Equipment
The value of owned and hired plant, tools and specialist machinery can affect cover requirements.
Claims History
Previous claims and loss experience can influence insurer terms and pricing.
Cover Limits & Extensions
Selected liability limits, policy extensions, excesses and project-specific requirements may affect the premium.
Why Choose Edison Ives for Construction Insurance?
At Edison Ives, we understand that construction businesses have demanding schedules, complex projects and significant responsibilities.
We take time to understand your business activities, contract requirements, project values and insurance exposures before exploring suitable cover.
Our team can approach appropriate insurance markets and help explain important policy terms, exclusions, endorsements and sums insured.
We also aim to provide ongoing support when your insurance requirements change or when you need assistance with a claim.
Our focus is on providing straightforward advice and a personal service, helping construction businesses make informed insurance decisions.
Looking for Construction Insurance?
Whether you’re arranging cover for an established construction company, a new project or an upcoming renewal, our team would be happy to discuss your requirements.
Speak to Our Construction Insurance Team
Call 0113 390 4646
Email info@edinsure.co.uk