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Who needs Demolition insurance?

The demolition trade is inherently hazardous which is why it’s crucial to have the right kind of cover. Not having a policy could place you and your business at financial risk so it’s vital to take the time to arrange the protection you need. If you’re not sure about what to choose or what to consider, here’s our guide to demolition insurance.

What is demolition insurance?

It’s a type of tradesman insurance that covers the specific risks and hazards that you could face while working as a demolition contractor.

Policies cover a range of events – from compensating you for theft of equipment, covering the cost of damage to your commercial premises or even paying for legal fees to defend yourself in court. Without an adequate policy, you’d have to meet these costs yourself which could spiral into the thousands.

What does demolition contractors insurance cover?

Policies are a combination of different types of business insurance which you’ll be able to tailor to meet your exact needs. Popular features include:

• Public liability insurance – this is probably one of the most important aspects to consider as it covers the cost of legal fees and compensation if a member of the public decides to sue you for injury or damage to their property.
• Employers’ liability insurance – you’ll need this by law if you employ anyone, even part-time and temporary workers. It covers compensation if a member of staff is injured or becomes sick through work. If you don’t have employers’ liability, you could be fined £2,500 each day you go without it.
• Plant, tools and machinery insurance – pays to repair or replace damaged or stolen equipment. Policies usually cover hired equipment as well, but always check your policy just to be sure.
• Personal accident insurance – compensates you for lost income and covers medical costs if you have an accident and can’t work.
• Legal expenses – pays legal fees and expenses if you need to settle a dispute in court.
• Business buildings and contents insurance – covers the cost of repairing, rebuilding or replacing your office and contents if they’re damaged because of an insured event (like a fire or flood).
• Contract works insurance – covers materials, tools and any unfinished work you need to re-do or correct because it’s been damaged.

What level of demolition insurance coverage do I need?

Levels of cover vary by insurer so it’s critical that you check any limits in place. Some levels of cover are set by the insurer – for example, machinery and tools insurance might be set at £10,000 while legal expenses might be limited up to £100,000 per claim.

Other types of insurance might be offered on a sliding scale – for instance, public liability often varies between £1 million and £10 million and it’s up to you to decide what’s right for you. If you’re not sure what you need, it’s worth knowing that contractors working for local authorities are typically expected to have £5 million worth of public liability.

Employers’ liability is the only limit that is set by law and you must have a minimum of £5 million worth of cover.
If you’re not sure how much cover you need for your business, your insurer will be able to help you.

What demolition insurance exclusions should I know about?

Almost all insurance policies come with exclusions – these are events not covered by your policy. The ins and outs tend to vary according to the terms and conditions set out by individual insurers, but common exclusions include:

• Wear and tear – you’re unlikely to be compensated for tools or equipment that need replacing because they’ve been damaged through time or use.
• Asbestos removal – as a demolition contractor, you may be covered for some exposure to asbestos, but you may not be covered for licensed or planned work with asbestos. In the majority of cases, you’ll be able to get additional cover if you need it.
• Use of explosives – depending on the type and scale of the demolition projects you carry out, you should be able to include this as an additional feature but it’s not typically included as standard.

How much does insurance for demolition contractors cost?

Cost depends on numerous factors – such as the size of your business, the type of demolition work you carry out and whether or not you need to bolt on additional features like asbestos cover.

Cost will undoubtedly play an important part in any decision you make, but it shouldn’t be the only consideration. Cheaper policies might seem like a bargain, but they may not give you adequate levels of cover and might not include all the features you need. If that’s the case, extending cover is likely to increase the premium while settling for a policy with inadequate protection leaves your business vulnerable and potentially responsible for huge costs.

Instead, take a look at the policy’s features, familiarise yourself with key exclusions and compare cheap policies with ones that you might initially dismiss as expensive. You could find that plans with higher premiums actually work out better value by the time you’ve added extras to a cheaper policy.

Compare demolition insurance

We understand that demolition work doesn’t always go to plan and that can accidents happen regardless of experience, so it’s imperative to get the right level of cover for your business.

At Quotezone.co.uk, we work with a range of leading insurance providers to ensure you get the protection you need at a price that suits your budget. For peace of mind, join our network of more than three million happy customers and start your quote right now.