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Construction insurance

Construction insurance

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Compare business insurance quotes from 14 leading UK insurers1

Comparing deals from more providers makes it easy to find the right cover and price for your needs, helping you save money.

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1Accurate as of September 2023

How does construction insurance work?

Construction insurance works by providing financial protection in the event of a claim. If a claim is made against you, while you are insured, your insurance company will pay for the cost of the loss, up to the limits of your policy. 

You need to select the type of cover that is relevant to your business in the construction industry – including builders, architects, and general contractors. Your policy can extend over a three, six or 12-month interval during the course of your project.  

When you take out construction insurance, you can choose your level of cover, which is the amount you’ll be insured for against any claims. Businesses with a higher turnover or more employees will usually need more cover. You’re also likely to need more cover if you’re working in an especially risky area of construction, where there’s more danger of an accident or injury. A higher level of cover means higher premiums, so make sure you pick the right policy for your business. 

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What insurance do construction companies need?

Every business is unique – but a good construction insurance policy should cover you against all the major risks of the trade. Here’s what should be included:

  • Public liability insurance

    On a building site, there’s always the risk that a passerby could be hurt, or you might damage someone’s property. This protects you against any extra costs if that happens

  • Employers’ liability insurance

    If you have any employees, this is a legal requirement. It keeps you covered in case anyone suffers an injury as a result of the work they do for you

  • Professional indemnity insurance

    If a client suffers losses as a result of work you’ve carried out, professional indemnity insurance will protect you against any compensation claims

  • construction-insurance

    You’ve invested a lot of money in your tools and equipment. Tool cover makes sure you won’t have to replace them yourself if you’re lost, damaged, or stolen

How much is construction liability insurance? 

At MoneySuperMarket the average annual premium for public liability insurance for a construction business is £37.642. However, this price can range depending on the following factors:   

  • The size of the business 

  • The level of cover that is required  

  • The insurer’s risk assessment.  

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210% of customers paid up to £37.64 a year for a standard public liability insurance policy when paying annually, between January 1st and March 1st, 2023

What does construction insurance cover?

With construction insurance, you’re protected against many of the dangers that come with working in construction – but there are some exceptions. Here’s what you’re covered for:

  • Tick

    What’s included

    • Accidents and injuries: You’re protected if someone is injured on site, whether it’s one of your employees or a member of the public. You can also protect yourself with personal injury cover

    • Faulty work: If there’s a problem with your workmanship, insurance has you covered. Your insurer will pay out for any claims for professional negligence, breach of contract, or faulty products

    • Tools and materials: Tools can be valuable, and there’s always the risk that they could be lost, stolen, or damaged. Your insurance will pay for replacements, and this can even include hired tools

  • Cross

    What isn’t

    • Malicious damage: If it’s found that you or one of your employees deliberately caused damage, or intentionally injured someone, your insurer will usually refuse your claim

    • Costs beyond your cover: For example, if a court orders you to pay £10 million in damages, but you’re only insured for £5 million, and your insurer won’t pay out the full amount – that’s why it’s crucial to get the right level of cover

    • Your excess: All insurance comes with an excess – that’s the amount you’ll have to pay yourself towards any claim. A bigger excess usually means cheaper premiums – just make sure it’s an amount you’ll be able to pay 

Sam Meadows

Our expert says


The construction industry has inherent risks and while some are obvious, others are less so. Having the right level of construction insurance in place will help you mitigate the financial cost should an unfortunate event occur such as an accident or property damage on a job your firm is working on. Some insurance will be mandatory and other insurance optional, so fully research what your company needs before you apply.

- Sam Meadows, Insurance Expert

Compare construction insurance

Comparing business insurance quotes with MoneySuperMarket and our preferred partner SimplyBusinessis the easiest way to find an affordable deal on cover. Here's how it works:

  • Tell us about your business

    Let us know about your business, who you employ, and how much cover you need, and we'll find deals tailored to your requirements

  • Compare deals

    You’ll be able to compare your offers by cost, level of protection, and any extras you might find useful 

  • Choose the one you like

    Once you’ve found a deal you like, simply click through to the provider – they’ll take it from there 

Professional indemnity insurance is a type of insurance that protects construction professionals from financial losses resulting from claims of professional negligence. This can include claims for: 

  • Errors in design or workmanship 

  • Failure to meet the client's requirements 

  • Breach of contract 

  • Loss of data or documents 

  • Infringement of copyright or intellectual property 

PI insurance is essential for all construction professionals, as the cost of defending a claim can be high, and the consequences of losing a claim can be even worse. 

Public liability insurance in construction is a type of insurance that covers a construction business for legal liability arising from accidents or injuries to third parties, or damage to their property.

This type of insurance is essential for protecting businesses from the financial consequences of accidents that occur on their worksites. 

The amount of cover you need for a construction business will depend on a number of factors, including: 

  • The size of your business 

  • The type of work that you do 

  • The level of risk involved 

  • The requirements of your clients 

  • The regulations in your industry 

In general, it is advisable to have at least £2 million of public liability insurance and £1 million of professional indemnity insurance. However, you may need more cover depending on the specific risks of your business. 

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