Public Liability Insurance for Builders: Compare the Best Options in 2025

In the building industry, where accidents can happen despite best efforts, public liability insurance is an essential safety net. From protecting against financial losses due to accidents to meeting client requirements, this insurance safeguards builders against claims for injury or property damage.

ScrewHero Podcast: Public Liability Insurance for Builders in the UK

This article from screwhero.com is a guide to public liability insurance for builders in the UK. It explains the importance of this insurance for financial protection and meeting client requirements, details coverage examples and costs, and compares several leading providers like AXA UK and Tradesman Saver.

The article also discusses other relevant insurance types, such as employers’ liability and tools insurance, and offers advice on choosing the right policy. Finally, it emphasizes the crucial role of public liability insurance in building a successful and secure business.

In this comprehensive guide, we’ll explore the importance of public liability insurance for builders, compare leading providers in the UK for 2025, and answer frequently asked questions to help you make the best choice for your business.

What is Public Liability Insurance for Builders?

Public liability insurance covers builders against claims from third parties for injury or damage caused by their work. It includes compensation, legal fees, and repair costs, providing financial security for businesses.

Examples of Claims Covered:

• A falling brick damages a parked car on-site.
• Scaffolding collapses, injuring a passer-by.
• Plumbing work causes water damage to a client’s home.

While not legally required in the UK, public liability insurance is often a prerequisite for contracts and instills trust among clients.

Read Also: Public Liability Insurance for Plumbers

Why Builders Need Public Liability Insurance

1. Financial Protection

Construction work carries risks. The average claim cost for third-party injury or property damage can exceed £13,000. Public liability insurance ensures that you won’t bear these expenses out of pocket.

2. Client and Contract Requirements

Many clients, particularly local councils and large corporations, require proof of insurance, with coverage often exceeding £5 million, to award contracts.

3. Reputation and Professionalism

Having insurance signals to potential clients that you’re a professional who takes responsibility seriously. It can be a deciding factor in securing jobs.

Real-World Example:
A builder’s work weakens a neighbouring structure, leading to a partial collapse. Without insurance, the costs of repairs and compensation could bankrupt the business. With public liability coverage, the builder is financially secure.

Comparison of Public Liability Insurance Providers for Builders (2025)

To simplify your decision, we’ve compared top UK providers, focusing on coverage limits, features, and costs.

Additional Insurance Builders Should Consider

While public liability insurance is critical, you may need other coverages to fully protect your business.

1. Employers’ Liability Insurance

Mandatory if you employ staff. Covers claims if employees are injured or fall ill due to work.

2. Tools and Equipment Insurance

Covers theft or damage of tools, ensuring your business doesn’t grind to a halt after an incident.

3. Contract Works Insurance

Protects ongoing projects from damage or theft, essential for builders working on large-scale sites.

4. Professional Indemnity Insurance

Covers claims resulting from design errors or professional advice.

How Much Does Public Liability Insurance Cost for Builders?

The cost of public liability insurance depends on factors like business size, project risk level, and coverage amount.

Typical Costs in the UK:

• Basic coverage: £120–£200 per year.
• Comprehensive coverage (including tools and employers’ liability): £300–£500 per year.
• Larger projects or high-risk work may require policies exceeding £1,000 annually.

To keep costs manageable:

• Compare multiple providers.
• Choose coverage that matches your business needs without unnecessary add-ons.

FAQs About Public Liability Insurance for Builders

Do Builders Legally Need Public Liability Insurance?

No, it’s not a legal requirement, but it’s highly recommended and often required by clients or contracts.

What Does Public Liability Insurance Cover?

• Injuries to third parties.
• Property damage caused by your work.
• Legal fees, compensation, and repair costs.

How Do I Choose the Right Coverage Limit?

Assess your typical project size and risks. Large commercial projects may require up to £10 million, while small residential jobs may only need £1 million.

How Do I Verify a Builder’s Insurance?

Ask for their insurance certificate and check the policy details with the provider for validity.

How to Choose the Best Public Liability Insurance Policy

1. Assess Your Business Needs

• Do you work on high-risk projects?
• Do you need additional coverage like tools insurance or employers’ liability?

2. Compare Providers

Use comparison sites like Simply Business or opt for tailored policies from providers like AXA UK or Hiscox.

3. Read Reviews

Customer feedback can reveal a provider’s strengths in claims handling and customer support.

4. Check Exclusions

Ensure the policy doesn’t exclude key risks specific to your trade.

Conclusion: Protect Your Business with Public Liability Insurance

In 2025, public liability insurance remains a cornerstone of risk management for builders. It’s more than just a policy—it’s a professional standard that protects your finances, builds trust, and opens doors to lucrative contracts.

With providers like Tradesman Saver and AXA UK offering affordable, tailored policies, finding the right coverage has never been easier. Take the time to compare options, understand your needs, and secure a policy that safeguards your business for years to come.