The Federation of Master Builders

Level Up On Liability

Published date: 26 February 2021

The nature of the construction industry means that those working on building sites daily, are frequently exposed to a number of potential dangers and risks.

Anyone that employs other members of staff has a responsibility to ensure their safety. As with all walks of life, accidents can and do happen. It’s important to be prepared. Should you be found liable for any damage to an individual or property, the costs involved can be devastating to you and your business.

Liability Insurance is designed to protect you and your business from claims made against you for injury or damage to a property or third-party individual. An important safety net should anything go wrong, the policy covers legal costs and compensation, should you be found liable. There are two types:

Public Liability - covers you for negligence and compensation of any damage to a third-party property, such as a client’s home, or their neighbour’s property, and any injury caused to a third-party individual that enters your site.

Employers Liability - is a legal requirement if you have staff working for you. The policy covers claims from employees who may have been injured or become ill as a result of working for you.

Things to consider:

Avoid cutting costs- ensure your cover is comprehensive. It could save you money in the long run.

Labour only Sub-contractors (those working under your direction and using your tools and materials), should be treated as employees for the purpose of cover under this type of insurance.

Bona-fide sub-contractors (those that work without direction from you and use their own tools and materials)  do not need to be included in your policy. However, you do need to check before they start work on your site, that they have their own insurance.

Additional cover you might want to consider alongside your liability insurance:

Professional Indemnity Insurance 

Contract Works


FMB Insurance Liability policies offer a diverse range of cover for every aspect of your business, allowing you to truly personalise your cover. There are varying levels of indemnity to choose from; £1m, £5m and £10m. All policies are underwritten by market-leading insurers. For further information call 01353 652760 to speak to one of our friendly team members.

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