Construction Insurance

Keeping you and your team covered during construction projects

Construction Insurance is designed to insure the complex risks facing companies who work within the construction industry. Because of the ever-changing landscape of the industry, including the consistent increase of health and safety requirements, the policies are designed to offer bespoke covers that adapt to these emerging requirements and risks.

Therefore covers differ greatly depending on which role a company has within the industry. For example, a Professional Indemnity policy for an Architect firm would offer significantly different covers to Professional Indemnity cover for a lead contractor who is engaging in full design and build contracts.

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The Covers We Offer

Construction insurance is a term used to summarise the various covers available to companies working within the construction industry. Within this there are many different types of insurance covers which can be combined to create your policy. Core covers typically include Employers Liability, Public liability, Contractors all risk (CAR) and own plant/ hired in plant covers. However, at SJL we have a wide range of insurers meaning we can negotiate market-leading rates for the following covers:

Professional Indemnity: Professional Indemnity Insurance refers to protection against incorrect or inadequate advice and services that you give. Unfortunately, any business can produce work resulting in both financial and reputational loss for their client and this is sometimes only uncovered long after the contract is completed. In this instance, your company can be held responsible which is when Professional Indemnity Insurance supports your business. At SJL Insurance Services, we provide insurance that can cover expenses, legal fees and pay outs incurred should an allegation be made against you by a client for providing an inadequate service.

Read more about Professional Indemnity Insurance

Construction Public Liability Insurance

The Risks

While working on site it is normal that there is a large number of people and high value of equipment and materials in a small vicinity. With this in mind, a small negligent act by an employee can easily lead to injury to a member of the public, mass third party injury and property damage.

What It Covers

Public liability insurance for construction will pick up the legal expenses and compensation payments following an event causing both third party injury and property damage. Have peace of mind with construction public liability cover.

Construction Employers Liability Insurance

No matter how careful and diligent you are with risk assessments and method statements, accidents involving employees at work regularly happen.

Therefore Employers liability insurance is designed to cover you in the eventuality that your employees are injured at work, so you can protect your business.

Contractors all risk

From the day the ground is broken, through the project being signed off as practically complete, there will be an accumulation of materials on site.

Between the aforementioned times, this cover will pay to replace/ reinstate materials. from loading, through to being structurally in place on site. While including completed structures for maintenance period/ for short periods of times pending sale on residential properties, and free issue materials whilst on site.

Own plant

What It Covers

Comprehensive cover for plant, power tool and machinery belonging to you, including cover whilst in use, in transit, and in temporary storage. Therefore cover is acceptable when the plant is either owned by you, in the process of being purchased, under a lease or deferred purchase agreement by you.

Hired In Plant

What It Covers

In short, Cover for plant hired from a third party. So this includes legal liabilities you assume under contract when hiring out plant, including physical damage to the equipment, and continual hire charges that you are financially responsible for following accidental damage to tools and equipment.

Construction Personal Accident Insurance

In short, Cover designed to give you, your staff and your dependents security should an accident occur and your income be effected.

Fleet Insurance

What It Covers

Many businesses own multiple vehicles, making insuring these individually on an annual basis a logistical and financial problem. However, SJL Insurance Services offer Fleet Insurance which covers all of your business vehicles under one policy. Therefore there is only one renewal date.

So SJL Insurance Services cover all vehicles including cars, vans, taxi’s, HGVs and special type vehicles.

Latent Defects

What It Covers

Also known as Structural Warranty and is primarly designed to cover costs of repairs or rebuilding in the event of structural damage which appears after practical completion. As well as faults and defects caused by failures in design, workmanship or materials throughout the construction process may not become apparent for years after practical completion and hence most policies are for 10-12 years.

Professional Indemnity

Professional Indemnity Insurance refers to protection against incorrect or inadequate advice and services that you give. Furthermore, any business can produce work resulting in both financial and reputational loss for their client and this is sometimes only uncovered long after the contract is completed.

Engineering Insurance

As a business, you have a duty to ensure that your fixed plant is safe and in full working order. Arranging the mandatory inspections of this equipment can be costly and time consuming. So the best way is to purchase an engineering inspection policy.

Therefore this is not an insurance policy, rather a program arranged by the insurers to ensure all inspections are carried out correctly and in a timely manner. Insurance for the machinery for sudden and unforeseen damage can usually be added too, covering you over and above the limits and perils offered by plant insurance on a contractors combined policy.

Bond Insurance

What It Covers

An increasing number of both public & private contracts are requiring the financial security of a surety bond. The most common are performance, retention or road bonds but there are a multiture of different surety bonds on the market. Surety Bonds are not an insurance product, they are a written obligation provided by the guarantor to cover the beneficairy against the default of the bonded company. It secures the fulfilment of contractual, commercial or legal obligations

Legal Expenses

Construction Legal Expenses Insurance covers claims which arise from any contract disputes during construction projects. So this could be against a vendor, solicitor, architect, engineer, main contractor, surveyor, local authority, services utility, or supplier of materials. Therefore this cover takes away the worry of escalating legal fees. Consequently, it is a useful addition to any construction insurance program to protect you from any legal costs.

Discover What We Have To Offer

We can insure any type of business, and our expertise ranges from property and commercial risks, to kidnap and ransom. Literally any type of business, in any sector, anywhere in the world.

Because our expert brokers have access to a huge array of insurance products, this ensures they can find the best insurance policy for you. They get to know your individual needs and provide the best possible insurance solution for you. You will be provided with an allocated account and claims manager.

Furthermore our full list of Policies can be found on our services page.

Who is Construction Insurance for?

Construction business insurance and the different types of cover it affords are suitable for a wide range of companies, including:

  • Manufacturers and distributors of construction materials (including companies engaged in modern methods of construction contracts)
  • Building contractors
  • Lead contractors / developers
  • Sub-contractors and specialists trades
  • Architects and design professionals
  • Surveyors
  • Plant and equipment hire companies



What solutions SJL Insurance Services offer

We offer full turnkey solutions for both annual & project specific insurance programmes combined with bespoke, tailored coverage.

Examples of our existing client footprint include:

  • Owner Controlled Insurance Programme (OCIP);
  • Contractors Controlled Insurance Programme (CCIP);
  • Insurance backed guarantees & surety bonds;
  • Advanced loss of profit & delayed start-up costs;
  • JCT 6.5.1 (Non Negligence cover);
  • Contractors All Risks/Erection All Risks;
  • High Risk Liabilities;
  • Latent Defects;

Undoubtedly, SJL Insurance Services, we build insurance programs suited to your business, based on your specific requirements.

Thus built into our service is assistance in reviewing contracts to highlight your construction company insurance requirements, with specific expertise in JCT contracts.

Construction Insurance FAQs

While the cost of insurance for your construction business varies depending on the size and type of the project. As well as the location, and the level of coverage required. On average, the cost can range from 1-5% of the total construction cost.

How We Help

With SJL Insurance services we take out the guesswork and make sure you get all the cover you need at the best price possible.

While in the UK, construction insurance is not a legal requirement, but it is highly recommended. Because of this, some clients, lenders, or local authorities may require contractors to have insurance in place before starting a construction project. Having insurance helps to protect both the contractor and the client against financial losses in the event of a covered loss during the construction process.

Because choosing the right construction insurance requires a thorough understanding of the risks involved in the project. As well as the coverage needs of the contractor, owner, and other stakeholders.

How We Help

It’s advisable to work with an insurance broker such as SJL Insurance Services to assess the risks and find the most suitable insurance coverage.

Certainly, Yes, construction insurance can be purchased at any stage of the construction process, including during the construction phase.

So if a contractor or owner doesn’t have construction insurance, they are at risk of incurring significant financial losses in the event of damage.


For Example

Property damage, personal injury, or other covered loss during the construction process.

To clarify, responsibility for obtaining construction insurance typically lies with the contractor, owner, or both, depending on the terms of the construction contract.

Firstly if a claim is made during a construction project, the insurance company will assess the claim. Secondly, it will then determine the amount of coverage available under the policy. Therefore if the claim is covered, the insurance company will pay the policyholder for the losses incurred.

In short, Yes, insurance coverage is available for both commercial and residential construction projects.

In short, Construction insurance typically covers natural disasters such as earthquakes, floods, and hurricanes, as long as they are specified in the insurance policy.

Always Check

So it is important to check the policy details to determine what natural disasters are covered and to what extent.

Can’t find an answer? 

Get a Construction Insurance quote for the cover you need, and have peace of mind knowing that you're protected.

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