Compare contractors insurance

Cover for a contractor is normally a package rather than one policy. It typically pairs public liability with employers’ liability, tools and, on bigger jobs, protection for the works themselves.

Through Quotezone, contractors and subcontractors fill in a single form and compare the prices UK providers send back.

What cover does a contractor usually carry?

The right mix depends on the work you take on, who you employ and what your contracts ask for. Most contractors end up looking at some or all of these:

• Public liability: if your work injures someone or damages a neighbour’s property (business.gov.uk). Our public liability insurance page explains limits.
• Employers’ liability: taking on even one employee brings a legal duty to insure, with £5 million as the floor (GOV.UK).
• Tools and plant: theft of, or damage to, the kit you depend on (business.gov.uk).
• Contract works: damage to the job itself before handover. Our construction insurance page covers it in detail.
• Professional indemnity: worth adding if you design, specify or make technical recommendations.

Will a main contractor ask for my certificate?

Usually. Main contractors and clients often make your own cover a condition of the work. The business.gov.uk guidance names a client contract that requires it as a reason to buy public liability (business.gov.uk).

The contract normally states the minimum public liability limit you must hold. Check that figure before you buy, so you do not have to change the policy halfway through the year.

Some main contractors also ask to see employers’ liability and tool cover. Keep digital copies of each certificate ready to send.

Working in occupied homes and on commercial sites

Jobs in someone’s home bring their own risks, from a dropped tool that cracks a floor to water damage from a pipe you were fitting. Insurers often ask what share of your work is domestic and whether you use heat or open flames.

Commercial sites raise different questions, such as working near live roads or railways, or above people below. Contractors insurance is usually priced on that mix, so give a realistic split.

Hired-in plant and equipment

Hire companies often make you responsible for plant while it is in your care, and may charge for their own damage waiver if you cannot show cover. A hired-in plant section can be cheaper over a year than paying waivers on every hire.

Contractors working alone on a project

Being the only contractor on a job brings extra paperwork. HSE says a sole contractor must have a construction phase plan drawn up before setting up the site (HSE). On a homeowner’s job they also pick up the client’s duties.

Insurers rarely ask to see the plan at quote stage, but it is the kind of record that helps if an accident on site leads to a claim. Keep it with your risk assessments and method statements.

Safety duties for contractors on site

On construction work, HSE says contractors must plan, manage and monitor the work done by themselves and their workers (HSE). They must also make sure the people they employ or appoint have the right skills, knowledge and training.

An insurer may ask how you meet those duties, especially for work at height, hot works or jobs in occupied homes. Method statements, toolbox talks and induction records can all help if a claim is made against you.

Contractors, subcontractors and CIS

Under the Construction Industry Scheme, contractors deduct money from a subcontractor’s payments and pass it to HMRC (GOV.UK). That is a tax arrangement, and being registered for it gives you no insurance cover.

Subcontractors working through a main contractor may still need their own public liability and tool cover. Some main contractor policies extend to subcontractors, but many do not, so ask for confirmation in writing.

Which trades can compare cover here?

Most trade and specialist contractors can use this page to compare contractors insurance, whether they work alone, run a small team or manage several subcontractors. Typical trades include:

• groundwork, drainage and civil engineering contractors
• heating, ventilation and plumbing contractors
• electrical, data cabling and alarm contractors
• landscaping and fencing contractors
• shopfitting and interior contractors

IT and consulting contractors face different risks, mainly claims that their work cost a client money. Professional indemnity insurance is usually the main cover there.

What sets the price for contractors?

Insurers weigh each job differently, so quotes for the same trade can vary a lot. They usually look at:

• the type of work, the heights involved and any heat or demolition work
• your annual turnover and the size of your biggest contract
• how many people you employ or subcontract to
• the limits you choose and the value of your tools and plant
• any previous claims and the excess you choose

HMRC adds Insurance Premium Tax to most policies. The standard rate is 12% and has applied from 1 June 2017 onwards (HMRC).

A heating contractor with two employees

As an illustration, a heating contractor with two employees works in customers’ homes and lofts. They would usually need public liability, employers’ liability and cover for tools kept in the van.

A groundworks firm digging close to neighbouring buildings may also need higher liability limits and contract works cover, so its quotes could be higher.

Get quotes through Quotezone

Give us your trade, turnover, staff numbers and the covers you need on one form. Providers then send prices for your contractors insurance, so you can compare limits, excesses and exclusions alongside the cost.

Start your contractor quote today.

You might also need

If you carry tools and materials between jobs, compare van insurance. And if you design work for clients, look at professional indemnity for construction.