For more on this part of the insurance industry:
This type of construction coverage protects property developers and building contractors against a wide range of problems that can happen during and after a project.
It typically helps cover costs linked to:
Those who fund, manage, and carry out construction work across the country rely on personalised policies to avoid major financial loss.
If a fire were to damage a building site partway through a project, a developer without contract works insurance could suffer hundreds of thousands in rebuild costs.
This could also cause months of delay. With the right cover, those losses could be claimed instead.
Developers are increasingly bundling design-and-build roles, which is expanding demand for combined policies with both professional indemnity (PI) and contractors all risk (CAR) cover.
Joint venture developments are on the rise in mixed-use projects. This increases the need for bespoke contract works insurance that recognises shared financial interests and multi-party liabilities.
Along with these advancements, emerging risks also present themselves. These include:
Planning delays and legal challenges are causing costly hold-ups for many UK projects. At the same time, cyber threats from site tech are rising fast. Yet many still lack proper cover for delays or data loss.
Anyone working on a build or managing a project could encounter big risks. People who should have cover include:
Even small teams or one-off builds benefit from cover. Brokers should match the policy to the person’s role and level of risk.
A property developer needs specific insurance to manage legal, site, and financial threats during a project. Developers and builders insurance brings these covers together in one place.
Essential covers include:
Each policy helps reduce costly setbacks during development. Brokers should customise the cover to project type and scale.
A builder needs the right insurance to manage on-site accidents, tool losses and liability during construction.
Coverage options for them may include:
This cover helps builders stay economically secured from job site risks and claims.
Builders must have employers’ liability insurance if they hire anyone. It’s a legal requirement and safeguards against claims from injured or sick workers.
Other cover, like public liability or contract works insurance, isn’t required by law. However, it’s strongly advised.
Most funders and contracts won’t allow work to start without proof of developers and builders insurance.
If a builder has no insurance, any injury or damage may fall on the client. That could mean paying out of pocket for accidents or legal claims.
Builders must have employers’ liability cover if they hire staff. Without it, they risk heavy fines up to £2,500 per day.
Developers and builders insurance helps avoid these problems. It shields both the builder and the person paying for the work.
Is developers and builders insurance worth having?
Yes, because without the right cover, one mistake or accident can cost thousands. Many projects face delays, legal claims, or damage before completion.
Developers and builders insurance helps reduce these hazards by offering protection from day one. It also:
Brokers should remind clients that the cost of cover is often far less than the cost of a single uninsured loss.
