How insurance looks for building contractors
Building contractors range from small residential builders to main contractors delivering commercial and industrial projects. Many contracts use JBCC agreements, where insurance is set out in the contract data and the parties must identify who arranges which covers and for what amounts.
Because work is above ground and often close to existing buildings, fire, water ingress, falling objects and theft of materials are recurring discussion points with insurers.
Exposures to assess
These scenarios show where the insurance conversation usually becomes specific for this trade. They are exposures to assess with an insurer, not assurances that any policy will respond.
Fire during construction
Partially completed structures with timber formwork, packaging and temporary electrics can be vulnerable. Ask what site safety and fire precautions the policy expects and whether the sum insured reflects full reinstatement cost.
Water ingress before the building is weathertight
Heavy rain enters an unfinished roof and damages interior finishes. Check how the policy treats water damage and whether the cause, such as incomplete protection, affects the claim.
Work next to an occupied property
Excavation or piling beside a neighbour’s building raises questions about vibration, subsidence and cracking. Discuss how liability for adjoining property is dealt with.
Materials stored on site
Fittings, steel and finishes are left in site stores. Review security conditions and the limits that apply to materials and to theft.
Subcontractors and variations
Numerous trades work under your control, and the contract value grows with variations. Check the subcontractors’ insurance and whether the declared value is updated.
Covers to discuss
| Cover | Why it may matter |
|---|---|
| Contractors All Risk | Addresses the structure, temporary works and materials, and is typically a contract requirement. |
| Public liability | Covers third-party injury and damage claims arising near occupied buildings and public areas. |
| Goods in transit | Relevant to high-value fittings and materials on their way to site. |
| Employers’ liability | Building sites employ many people. Tenders often mention employers’ liability, so it helps to know what it is and what it is not. |
| Retention guarantees | May be relevant where the contract permits retention to be replaced by a guarantee. |
Information that helps us prepare a quotation
- The JBCC edition (or other form) and the contract data insurance entries.
- The contract value, including variations and employer-supplied items.
- The location, adjoining buildings and any basements or deep excavations.
- Programme, practical completion date and defects liability period.
- Subcontractor list and their insurance evidence.
- Site security and storage arrangements.
Frequently asked questions
Who arranges the insurance on a JBCC contract?
It depends on the edition and on what the contract data states. Do not assume. Read the entries for your own contract and send them to us if you want help interpreting them. See our JBCC insurance overview.
Does the policy cover latent defects after handover?
Not automatically. Contract works policies generally address accidental damage during the works, and the treatment of defects is more limited. See latent defects explained.
Related guides
- JBCC insurance requirements: where to lookHow JBCC building agreements deal with insurance, and why your edition and contract data decide the requirements. Not a substitute for your own document.
- Insurance after winning a tender: what to prepareWhat to do about insurance after a contract award: reading the contract’s insurance clauses, listing required covers and evidence, timing, and what to send your broker.
- Latent defects explained for contractorsWhat latent defects are, how they differ from patent defects, how liability may continue after the defects period and why insurance does not automatically cover them.
Related industries
- Concrete contractorsFormwork and falsework, pumps and mixers, defective pours and spillage in concrete construction.
- Structural steel contractorsFabrication and erection, cranes, hot work, painting overspray and design responsibility for steel contractors.
- Construction subcontractorsFlow-down requirements from the main contract, liability limits, tools and evidence of cover for subcontractors.