Building work carries significant liability — a partially completed extension damaged by storm or fire can cost tens of thousands to rebuild. Get the right cover for PLI, contract works, and employer liability.
Estimated 2026 annual premiums for UK sole trader and small builders
Prices vary based on annual turnover, trade type (groundwork is rated higher), and claims history. Always compare at least three quotes.
Employer liability: the fine is £2,500 per day. If you use any labour on site — including mates who are technically subcontractors — you may be required to hold employer's liability insurance. The Health and Safety Executive can inspect sites and issue fines on the spot. Get it in place before anyone else steps onto your project.
All FCA-regulated. Compare at least three before buying.
Fast online quotes, instant certificate
Specialist builder cover including contract works
Clear policies for micro-businesses
Long-established trades specialist, high-turnover cover
Strong claims handling, covers commercial building work
Popular with CIS and sub-contractors
When to use a broker vs going direct: For simple domestic renovation work, direct insurers are quick and affordable. If you carry out structural work, groundwork, or commercial projects — or need contract works cover alongside PLI — a specialist building trades broker will find better-value bundled cover and ensure your policy actually covers your work scope.
Run the rest of your building business just as professionally.
Ensure your policy covers all trade types you carry out and includes contract works cover if you take on extension or new-build projects.
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Builders typically need: public liability insurance (minimum £1m, most clients require £2m–£5m), contract works insurance (covers partially completed structures and materials on site), employer's liability insurance (legally mandatory if you employ anyone, including subcontractors on PAYE), and tools cover. The combination you need depends on your work type, turnover, and whether you employ others.
Contract works insurance (also called contractors all risk insurance) covers the work-in-progress on a building site if it is damaged or destroyed before completion — for example by fire, flood, storm damage, or vandalism. It typically covers the contract value of work already completed. Without it, if a partially-built extension is damaged, you could be liable for rebuilding it at your own cost. Premiums are typically around 0.5%–1.5% of the contract value per year.
Public liability insurance for a sole trader builder typically costs £80–£300 per year for £2m cover, depending on annual turnover and the type of building work you carry out. Groundwork and structural work are rated higher than finishing trades. Adding contract works insurance typically costs £150–£500 per year on top. Always compare at least three quotes as prices vary significantly between insurers for building trades.
If you work entirely alone as a sole trader with no employees, you do not legally require employer's liability insurance. However, if you use labour-only subcontractors, HMRC and the Health & Safety Executive may treat them as workers, making employer's liability legally required. The fine for not having employer's liability when required is up to £2,500 per day. If you ever take on anyone to help you on site, get employer's liability in place before they start.
For house extension projects you need: public liability insurance (minimum £2m, many clients and architects require £5m), contract works insurance covering the project value (typically £20,000–£150,000 for a standard single-storey extension), and employer's liability if you use any labour. Some clients will ask to see all three certificates before allowing work to start. On larger extensions, the client's own home insurance may not cover in-progress construction damage.
Not exactly. JCT contracts (Joint Contracts Tribunal) are standard-form building contracts that allocate risk between client and contractor. JCT contracts typically specify what insurance is required, including contract works cover. Contract works insurance is the actual insurance product. If you use a JCT Minor Works or JCT Homeowner contract, read clause 5 carefully — it specifies who is responsible for obtaining and maintaining the contract works insurance for that project.
Want the full deep-dive on tradesman insurance?
Read: UK Tradesman Insurance Guide 2026 — Public Liability, Employer Liability & Tools Cover →