It might come as a surprise, but builders only legally need insurance if they employ someone.
Still, most reputable tradespeople won't work with one who isn't insured. The right cover can also help you if a job goes wrong - by saving you from costly legal action.
This guide runs through what to check for, the type of insurance builders can get, and when your own home insuance policy might step in.
Do builders legally need insurance?
It isn't a legal requirement for your builder to have insurance. The only insurance they do need legally is employers' liability insurance if they employ staff.
Legal or not, it’s still something they really should have. And you're perfectly entitled to ask what insurance cover your builder has before they start work.
Your builder is responsible for any damage they do to your home. If they're not insured, you'd have to claim the costs back yourself - which could mean going down the legal route. That can get pricey, so checking they're covered is always a smart move.
Plus, other contractors might not want to work with builders if they don't have the proper insurance.
What insurance might they have?
There's a few different types of insurance that your builder might opt for:
Public liability insurance
If someone has an accident because of the work your builder has done or is doing, public liability insurance can step in.
Here's how:
- If someone trips over uneven ground that's caused by building work and hurts themselves, public liability can cover the legal costs if they decide to claim.
- If some rubble landed on your foot because of something your builder was doing, your builder's public liability insurance could cover legal costs or lost income because of the injury.
It doesn't just cover accidents to individuals. It can cover the cost of claims from suppliers, couriers and anyone who isn't an employee.
Employers' liability insurance
Your builder legally needs employers' liability insurance if they employ someone with at least £5 million in cover. This kicks in if one of their employees is injured at work.
It covers compensation and legal fees if one of your builder's employees decides to take them to court.
Professional indemnity insurance
If you try to sue your builder, professional indemnity insurance covers their legal fees and compensation if your builder gives faulty professional advice. It doesn't cover all kinds of bad workmanship though.
For example, you might decide to take your builder to court if they've given you professional advice and something happens to you or your home as a result.
What if my builder does a poor job?
Here's what to do if your builder does a poor job:
- Speak to your builder and explain the problem and your ideal resolution.
- Gather your evidence. Get your contracts together, any email chains or text conversations, receipts, paperwork, plans, pics and videos.
- File a complaint if you can't resolve it between you. You can do this with a trade association or local council. Or you could look into an Alternative Dispute Resolution (ADR).
- If your builder isn't part of an ADR, get advice from your home insurer.
If all else fails, you could sue your builder. But it's worth comparing the cost of suing the builder vs. fixing the work with another builder.
Read our complete guide on how to deal with shoddy workmanship for more information.
Remember, you're covered by the Consumer Rights Act 2015 too. This means if you hire a builder, they must complete the work to a professional standard.
That means the building work should meet building regulations and follow best practices. The work should be finished to a standard that you agreed to.
For example, no holes in the roof, and no abandoned rubble. This applies whether you're having a house built, renovated or rebuilt.
If you're in this situation, your home insurance can help you out. If you have a dispute with your builder, your home insurance legal cover (if you have it) can cover your legal bills.
Is there any insurance I can buy to cover building work that's being done on my house?
Yes, renovation insurance is an option for you. If you've got home insurance already, you can talk to your insurer and ask them to add it to your policy while your builder is doing the work.
When you're getting a quote, we'll ask you if you're having work done on your home. The quotes we find for you should cover the renovation work, but make sure you check this with your insurer.
What if I’m injured by work my builder has done?
You could make a personal injury claim because of something a builder did, or didn't do properly. This should come out of your builder's public liability insurance, if they have it.
You'll need to prove the injury was down to their negligence though, so make sure you've got evidence. That could be photos of the injury and the dodgy work, witness statements, medical records, proof of who carried out the job, and an independent report confirming it wasn't up to scratch.
Here's some examples of negligence:
- Leaving electrical wires exposed
- Stairs that might have collapsed
- Not securing scaffolding or tools that someone tripped or fell over
- Shoddy structural work that makes your home unsafe
If your claim is successful, your personal injury claim could cover costs related to:
- Head injury
- Loss of income
- Any pain or suffering
- Future care costs - like child care
- Medical expenses
You've usually got about 3 years to claim from the date of the injury. But if you think the builder's work caused it - get things moving as soon as you can.
Can I report my builder for dangerous or unsafe practices?
Yes, you can report your builder to trading standards. You can do this through citizens advice consumer service.
There's a couple of ways to contact them:
- Use their online form - it's available from 5pm on Fridays to 9am on Mondays. You should get a response back within 5 days.
- Or you can get help from one of their advisers
Citizens advice should pass your details over to trading standards. They'll decide whether they want to investigate further and should be in touch if they need more details from you.
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