For more on this part of the insurance industry:
Construction projects insurance is a cover for businesses that are involved in building, changing, or demolishing infrastructure, buildings, or other physical structures. It often includes several key stages:
Insurance aims to protect the project from start to finish. With strict construction rules in the UK, this financial safety net is often a requirement.
In early 2024, severe floods hit a building site in the Midlands because of Storm Henk. One project had contract works insurance and was able to claim quickly for damage and delays.
Another site nearby did not have enough cover and had to pay for new materials and repairs themselves. Insurance would have given them peace of mind and financial protection.
Insurers now include cover for modular and prefabricated builds, which need protection during transport. Drone monitoring is factored into risk checks, with discounts for regular site use.
Tools like Building Information Modelling (BIM) and digital twins help reduce errors which can lead to lower premiums. But brokers must still look at the emerging hazards, like:
Tougher rules around ESG and site safety can lead to rejected claims if not followed. Large projects are also seeing more disputes, which raise liability costs.
Brokers should check that clients meet all legal duties and update cover as the project grows.
Yes, the insurer must be told before any building work starts. If they aren’t, the policy could be cancelled or claims might be refused.
This applies to big jobs like extensions or loft conversions. Even smaller changes can affect one's cover, so it’s best to check in advance.
Letting the insurer know means they can adjust the policy if needed. This helps keep the construction projects insurance valid while work is going on.
This type of cover is useful for many people involved in building work:
Each party benefits from tailored construction projects insurance coverage, which makes sure they are financially secured against potential risks.
Single project insurance covers one building job from start to finish. It safeguards everyone working on the project under one shared policy.
It can include damage to the site, third-party claims, or delays in completing the work. This type of construction projects insurance is often used on larger or high-risk builds.
Other insurance options for construction projects include:
Brokers must help clients pick the right mix of cover based on project size, people involved, and risk level.
Yes, self-employed contractors should have insurance to shield their work and finances. It’s not always required by law, but it can avoid big losses.
Public liability insurance is the most common cover. If the contractor gives advice or designs, professional indemnity insurance is also useful.
Contractors who hire anyone must have employers’ liability insurance by law.
Construction projects fall into different types based on what is being built or repaired. Here are the main types seen in the UK:
Each type may require a different approach to construction projects insurance, based on value, site location, and people involved.
A project plan helps manage time, cost, and risks clearly from the start. Insurers often need it to assess cover and reduce delays in claims.
It also shows how tasks will be done safely and on time. This supports the right construction projects insurance being put in place early.
