what insurance do builders need ?

[barrata]

Hi all

It's been a long time since I posted but was looking for some advice from you guys.

We're looking to get some building work done and would like to know what sort of insurance my builders should have.

I understand public liability is needed but what insurance is needed if for example, they prop up a wall and the acro fails and my house falls down?

I've been told that the builders should have structural integrity insurance but is this necessary and what is indemnity insurance and is this the same?

Any advice would be greatly appreciated.

Many thanks for your help in advance.

andy

 

[jeds]

Your builder should have public liability insurance and employers liability insurance and the the property should be insured in joints names (i.e. both you and the builder) against all risks. This is important because if the builder has insurance (or vice versa) in their own name only the insurance company would pay any claim but would then turn their guns on anybody they think they might be able to recover the costs from - and that might be you. Insurance in joint names avoids this because the insurance company cannot sue a party to the insurance.

It is common to instruct the builder to take out a joint names policy but for domestic work your household insurance will probably cover you. (obviously you need to double check this?) Just make sure you add the builder for the duration of the works.

 

[barrata]

Hi John

Thanks very much for the advice.

andy