Contractor insurance for building and trade contractors

As soon as you start working on contracts for clients — even if you're working independently on a short-term basis. Whether you're on site, visiting clients' premises, or working in a public space, if something goes wrong and someone is injured or their property is damaged, you could face a significant compensation claim. Many clients will also require proof of cover before a contract is signed.

No — it isn't a legal requirement in the UK. However, the vast majority of clients, agencies, and organisations you work with will require you to have it as a contractual condition. Without it you may find yourself unable to secure work, and personally exposed to claims with no financial protection.

It covers compensation claims and legal fees if a member of the public is injured or their property is damaged as a result of your contracting activities. Common examples include a client or visitor being injured by your equipment or materials on site, accidental damage to a client's property or systems while carrying out your work, or a third party being affected by your activities on a shared site. It covers both the compensation payment and your legal costs, even if a claim turns out to be unfounded.

Public liability insurance covers claims from members of the public — it doesn't cover claims from your own employees (that's employers' liability), losses caused by professional errors or bad advice (you'd need professional indemnity for that), or damage to your own tools and equipment. Always check your policy wording carefully to understand exactly what's included.

Yes — a contractor public liability policy covers your business activities regardless of which site or client you're working with. Whether you're on a single long-term contract or working across multiple clients simultaneously, you're covered for the same risks. Just make sure your policy accurately reflects the type of work you carry out, as some activities may need to be specifically declared.

It depends on the nature of your work. Public liability covers injury or property damage caused by your activities. If your role also involves giving advice, producing designs, or making recommendations that a client could rely on, professional indemnity insurance would protect you if that advice turns out to be wrong. Many contractors working in project management, consultancy, or technical roles benefit from having both. Speak to our team and we can arrange both policies together.

The right level depends on the nature of your work and your clients' requirements. Standard cover starts at £1 million, but many organisations — particularly public sector bodies, large corporates, and government contracts — will require a minimum of £5 million or £10 million. Always check your contract requirements before selecting your cover level.

Yes — business insurance is an allowable expense, which means you can deduct the cost when calculating your taxable profit. Make sure you keep your policy documents and receipts as records for HMRC. If you're unsure, speak to your accountant.

Yes — you'll receive proof of cover instantly when your policy is in place, which you can share with clients and agencies straight away. If you also take out employers' liability cover, a Certificate of Employers' Liability will be issued immediately for display at your premises.