General contractors' insurance

For more on this part of the insurance industry:   

1. visit our construction insurance page for a closer look at all related categories in this sector  
2. or focus on all the insurance products for general contractors available on IB Markets! 

What is general contractors' insurance? 

Construction insurance for contractors is a group of cover options designed to shield general contractors—those who manage and oversee building projects—from various hazards. It can cover incidents like: 

• a worker getting injured during the job 
• damage to a customer’s home or building 
• stolen tools or hired machinery 
• a claim for poor workmanship 
• delays caused by bad weather 

In the UK, general contractors help drive the building industry. They work on homes, schools, shops, and more. To support them, insurance becomes a safety net that keeps projects moving when things go wrong. 

Why general contractors' insurance in the UK matters 

If a scaffold collapsed due to a subcontractor’s mistake, serious costs could follow. The contractor might need to replace damaged parts and cover lost tools or equipment. 

With the right insurance, these expenses could be claimed instead of paid from their pocket. Without it, the bill could run over £150,000, which is enough to threaten a small business. 

General contractors' insurance: industry trends and emerging risks 

General contractors are now using AI and robotics on site, which may change their insurance needs. The move towards green building methods is also pushing insurers to cover new materials and tools. 

Some firms now work with insurtech providers to find smart ways to manage their insurance. But as these changes take hold, new risks in general contractors’ insurance are also emerging:  

• underinsured project values: policy limits might not match true rebuild or repair costs 
• cyber threats on site: digital tools expose contractors to ransomware and data breach risks 
• higher rebuild costs: general contractors’ liability insurance may fall short as material prices continue rising 

Brokers are also seeing tighter rules on professional indemnity for design-and-build work. General contractors often face blame for project delays, even when it's not their fault.  

Insurance brokers should review policy terms closely, and save this page to find the best contractor liability cover UK has to offer. 

General contractors' insurance FAQs 

Who needs insurance coverage for general contractors? 

Those who need this cover include: 

• self-employed general contractors 
• small or large construction firms 
• property developers and housebuilders 
• subcontractors managing a team 
• clients who act as the main contractor 

Having general contractors' insurance protects all parties from costly claims and legal risks. 

What are common general contractors' insurance coverage options? 

Clients can choose from these core insurance options: 

• public liability insurance 
• employers’ liability insurance 
• contractors all risks insurance 
• contract works insurance 
• professional indemnity insurance 
• hired-in plant and tools cover 
• personal accident cover 
• products liability insurance 

Having the right building contractors insurance can reduce financial risk and keep projects running smoothly. 

What is the best insurance for a general contractor? 

Most should start with public liability insurance for contractors and contractors all risks insurance. These policies help cover injuries, damage claims, and site-related losses during a project.  

For general contractors, insurance should be shaped around the size and nature of their work. The best cover depends on the type of work and the dangers involved. 

Do general contractors need professional indemnity insurance? 

Yes, if they offer design advice or manage a build from start to finish. Construction professional indemnity insurance covers claims for mistakes in planning or advice. 

It’s often required in design-and-build contracts or professional project roles. Even if not required by law, it helps safeguard reputation and reduce financial hazards. 

What rights do self-employed general contractors have? 

Self-employed general contractors have fewer legal protections than employees. But they do have certain rights that support how they run their business: 

1. set their own rates and hours 
2. pick who they work for and what jobs they take 
3. work for more than one client at a time 
4. use their own tools, materials, and space 
5. keep control over how the work is done 
6. claim allowable business expenses and tax deductions 

While they don’t get sick pay, holiday pay, or unfair dismissal rights, they do have full control over how they work. 

That’s why it’s important to have proper protection through general contractors' insurance and other cover that suits the risks.