Construction work in Northern Ireland can lead to injury claims, property damage, stolen equipment or damage to work in progress. The right insurance depends on your trade, staff, equipment and the contract you are taking on.
What insurance should a construction contractor consider?
Most contractors should consider the following covers. The exact package and limits will depend on the work.
- Employers’ liability — usually required by law if you employ staff. In Northern Ireland, the legal minimum is £5 million.
- Public liability — covers claims if your work injures someone or damages their property. It is often required by clients and main contractors.
- Contract works insurance — can cover the work, materials and temporary works if they are damaged by an insured event before completion.
- Professional indemnity — may be needed if you design, advise, specify materials or accept design-and-build responsibility.
- Plant, tools and motor — may protect owned or hired plant, tools and vehicles used for the business. Correct business use must be declared.
Is public liability insurance enough?
Usually not. Public liability mainly deals with injury to other people and damage to their property. It may not cover damage to the work itself, design mistakes, tools, plant or vehicles.
Why does the job value matter?
A policy may include a ‘maximum any one contract’ limit. The full job value must fit within that limit, including labour, materials and expected variations where required by the policy wording.
A £5 million public liability limit does not mean you can automatically accept a £5 million contract. These are different limits and both must be checked.
What should you check before accepting a construction contract?
Before signing or starting work, compare the contract with your insurance. A short check can prevent a serious gap later.
- Insurance requirements — note every policy, limit, excess and period of cover required by the contract.
- The exact work — make sure your declared trade includes all activities. Roofing, demolition, excavation, hot works and structural work may have restrictions.
- The full contract value — check it against the policy’s maximum contract limit and allow for likely changes.
- The property being worked on — confirm who insures the new work, existing building, materials and any client-supplied items.
- Subcontractors and labour — tell your broker who will carry out the work and check the insurance held by subcontractors.
- Policy conditions — review rules for hot works, site security, water damage, working height, excavation depth and unattended sites.
- Changes during the job — report increases in value, delays, new methods or changes in scope before they fall outside the agreed cover.
When should you speak to your broker?
Speak to your broker before accepting the contract if the work is new, the job value is above your usual limit, the contract asks for higher cover, or any clause is unclear. Your broker can check whether the policy is suitable or whether an amendment is needed.
Can a contract create liabilities that insurance does not cover?
Yes. Broad indemnities, uncapped liability or a ‘fitness for purpose’ obligation may go beyond normal insurance cover. Ask a solicitor to review unusual contract wording before you agree to it.
Finding Construction Contractors’ Insurance in Northern Ireland
At Dolmen Insurance Brokers, we work with construction businesses across Northern Ireland. We can review your current arrangements, compare quotations from a panel of insurers and explain the available options.
Contact Dolmen Insurance Brokers on 028 9601 6840 or email info@diblni.co.uk to discuss your construction insurance requirements.
Disclaimer
The information provided in this blog is for general guidance and informational purposes only. While every effort has been made to ensure accuracy at the time of publication, Dolmen Insurance Brokers Limited accepts no responsibility for any errors, omissions or changes in legislation. Insurance policies and cover requirements may vary depending on individual circumstances. This blog does not constitute legal, financial or insurance advice.
Readers should seek professional advice tailored to their particular circumstances before making any insurance decisions.
Dolmen Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 978635.
