Ask what each policy actually covers
Public liability insurance concerns claims for injury to other people or damage to their property arising from the business’s activities. It should not be treated as a general promise to pay for every defect in the building work. Ask about exclusions and the particular activities insured, especially where the project includes excavation or structural alterations. [1]
Employers’ liability insurance addresses employees’ injury or illness claims. GOV.UK explains the legal requirement for employers, subject to exemptions. The homeowner should check the contractor’s position rather than assume that calling everyone a subcontractor settles whether cover is required. [2]
Where a business undertakes design or professional advice, ask about professional indemnity cover. This deals with specified claims arising from professional errors or negligence, subject to the policy wording. It is different from insuring physical damage to the construction works. [3]
Cover the existing home as well as the new work
Before starting, describe the scope, anticipated duration, occupancy and structural work to your home insurer. Aviva’s published advice distinguishes ordinary redecoration from significant alterations that need to be discussed with the insurer. Obtain a response for your own policy rather than relying on another insurer’s general list. [5]
Renovation insurance can address risks to the existing property and the works, but the arrangement depends on the project and product. Agree who arranges the required insurance, who is insured, the insured value, excesses and the period covered. Hiscox’s renovation product illustrates that specialist cover is distinct from standard home insurance. [4]
Review the documents before signing
Use this practical checklist when asking the broker or insurer to confirm suitability:
- Does the insured business match the contracting business?
- Are the address, work type and project value correctly described?
- Are subcontracted design and specialist operations addressed?
- Who covers stored materials and damage to the existing building?
- What changes, incidents or periods of vacancy must be reported?
Ask for explanations in writing and keep the schedule and relevant wording, not only a certificate or a statement that the builder is “fully insured”. The scope remains policy-specific. [4] [3]
Keep the arrangement current
Notify the relevant insurer or broker when the scope or occupancy changes. Before a policy expires during the project, ask for evidence of renewal or replacement. Insurance should be checked alongside the contract’s allocation of responsibility, not used as a substitute for a clear scope, competent contractors and proper inspections. [5] [6]