The Uncomfortable Truth About Builder Insurance
Most homeowners never ask their builder for insurance certificates. It feels awkward. It feels like distrust. It feels unnecessary — after all, the builder came recommended, their website looks professional, and they quoted confidently.
Most contractors are counting on exactly that.
The construction industry in the UK operates with very little mandatory verification of insurance at the point of appointment. Unlike a solicitor or financial adviser, a builder is not required to prove their cover before starting work. The responsibility for checking falls entirely on you — the client.
We have seen contractors who do not know what public liability insurance is. We have seen expired certificates handed over as if they were current. We have seen policies with the wrong cover level, the wrong named insured, or cover for a completely different trade. We have seen contractors who bought a cheap policy the day before a client asked — fully intending to cancel it the following week once the job was confirmed.
The Broken Industry
“We've seen contractors who don't know what public liability insurance is. They show us an expired certificate or one with the wrong cover level. Some just bought it yesterday to show you — and it'll be cancelled next week.”
— RCB Design & Build, from verified site experience across 10+ years of UK residential construction
What Actually Happens When Insurance Isn't There
Two scenarios. Both are more common than you think.
Scenario 1: A Worker Is Injured on Your Property
A labourer falls from a ladder on site. He fractures his ankle. He cannot work for six months. His contractor — the person you hired — carries no employer's liability insurance.
Under the Employers' Liability (Compulsory Insurance) Act 1969, that contractor has committed a criminal offence by allowing workers on site without the mandatory policy in place. But that does not protect you. The injured worker's solicitor will look at every available route to compensation — including a claim against you as the property owner for permitting an unsafe working environment.
Your home insurance may or may not respond. The legal costs alone can reach five figures before the case is resolved. And if the contractor has dissolved their company in the meantime, you are dealing with this alone.
Scenario 2: The Work Fails and the Builder Has Gone
Six months after completion, you notice damp spreading across the ground floor. The waterproofing has failed. The contractor who promised “no problem, call me if anything comes up” is no longer answering. Their mobile number is disconnected. Their company — which turns out to have been dissolved three months after your project finished — no longer exists.
If they held public liability insurance with a reputable insurer at the time of the project, and you have the policy number and documentation, you may still have a route to a claim. But if the certificate they showed you was expired, fraudulent, or cancelled — you have nothing.
A principal contractor with a long trading history, a permanent company registration, and a contractual relationship documented in writing gives you legal recourse that a one-man-band never can. The difference is structural — not just about paperwork.
Four Policies Every Contractor Should Be Able to Show You
Ask for the actual certificates — not verbal assurances, not screenshots of a summary page, not a policy number over the phone. A contractor with proper, current cover will have these documents immediately to hand.
Public Liability Insurance
Minimum £2M — we recommend £5M for larger projects
Covers damage to your property, your neighbour's property, or injury to any member of the public caused by the builder's activities on site. If a scaffold board falls through your kitchen ceiling, this policy pays. Without it, you are relying on the contractor's goodwill — and in most cases, a contractor without this cover simply cannot pay.
Many sole traders carry only £1M, or let the policy lapse mid-project. Always check the renewal date on the certificate.
Employer's Liability Insurance
Minimum £10M — mandatory by UK law where workers are employed
If any worker — employed or subcontracted — is injured on your property during the project, this policy covers the claim. This is not optional. Under the Employers' Liability (Compulsory Insurance) Act 1969, any contractor with employees must hold at least £5M of cover (most insurers issue £10M as standard). Failing to hold this cover is a criminal offence.
A one-man-band working entirely alone may not legally need employer's liability — but the moment a second person sets foot on your site under that contractor's direction, the obligation kicks in. Ask your contractor who will be working on your project and verify accordingly.
Contract Works (All-Risk) Insurance
Covers the value of the works in progress
This covers the partially completed works against loss or damage — fire, flood, theft, storm, or accidental damage — while construction is underway. If your half-built extension is destroyed in a fire, contract works insurance pays to rebuild from where you left off. Without it, neither the builder's policy nor your home insurance is likely to cover the cost.
This cover is not always included as standard. Ask specifically. Some builders arrange it per project; others hold an annual contractors' all-risk policy. Either is acceptable — but verify it exists.
Professional Indemnity Insurance
Relevant where design, specification or professional advice is provided
If your contractor is also designing the project — drawing up plans, specifying materials, advising on structural solutions — professional indemnity cover protects you if that advice turns out to be wrong. A builder who told you a wall was non-structural (and it wasn't) is not covered by public liability for that error. Professional indemnity is the correct policy for design and advisory failures.
Most trade contractors do not hold PI insurance because they do not provide professional services. If your builder is also acting as your designer or project manager, ask whether PI cover is in place.
Red Flags to Watch For
The list below represents patterns we have seen repeatedly. Any one of these warrants further scrutiny. Several of them together should stop the conversation.
One-Man-Band vs Principal Contractor: A Different Level of Risk
There is nothing inherently wrong with hiring a skilled sole trader for the right job. A small bathroom refurb, a single-trade task, a repair — these can be handled well by an individual with the right skills.
But for projects of meaningful size — an extension, a loft conversion, a full refurbishment — the insurance and contractual picture changes fundamentally.
A multitrader who “handles everything” but brings in a different sub for each trade — plumber, electrician, plasterer, tiler — without formally managing them as a principal contractor is creating a fragmented risk picture. If the electrician has no public liability cover and causes a fire, who is responsible? If the plasterer's work fails and he refuses to return, who enforces it? The homeowner is standing in the middle of multiple unrelated contractor relationships with no single party accountable.
One-Man-Band Multitrader
- Public liability only — may lapse without notice
- No employer's liability if bringing in help informally
- Each sub is a separate unmanaged contractor relationship
- No contract works insurance as standard
- Company may dissolve at any point post-project
- No documented accountability chain for defects
Principal Contractor (RCB)
- Public liability and employer's liability verified annually
- All subcontractors verified before site access
- Every sub's insurance checked and filed for each project
- Contract works cover in place for the full project
- Established trading history — company since 2015
- Written contract with clear defects liability period
How RCB Handles Insurance — For Every Project
Our insurance position is not something we review once a year and forget about. Every subcontractor who works on an RCB project is vetted before they are engaged. Every certificate is checked for the correct named insured, current expiry date, and adequate cover level for the scope of work they are performing. If a sub's policy has lapsed, they do not come on site.
- RCB holds £5M public liability insurance — verified annually
- Employer's liability cover at £10M in place for all projects with site personnel
- Contract works cover arranged for each project before commencement
- All subcontractors must provide current certificates before site access is granted
- Certificates are checked for cover level, expiry date, and named insured
- Accredited with FMB, TrustMark, and Checkatrade — 9.96/10 from 114 verified reviews
- Registered principal contractor — full accountability for the entire project
Our position
We welcome clients who ask hard questions about insurance. If a contractor makes you feel awkward for asking, that is your answer. A contractor with nothing to hide has nothing to object to.
The Questions to Ask Before Any Builder Starts Work
Print this list or save it. Ask every contractor you speak to the same questions in the same order. A contractor with proper cover will answer without hesitation.
Can I see your current public liability insurance certificate?
What is the limit of indemnity, and when does the policy expire?
Will you be bringing workers or subcontractors on site? If so, can I see your employer's liability certificate?
Is contract works (all-risk) insurance in place for this project?
Do you or any of your subcontractors provide design or specification advice? If so, is professional indemnity in place?
Can I verify your cover directly with your insurer if I choose to?
Will you ensure every subcontractor you engage also holds current, adequate insurance?