Written by the team at euroloo. Updated: 14 December 2025.

What builders, contractors and self-employed trades actually need to work on site

Insurance is one of those things people buy hoping they never need it. On real sites, it’s rarely about “fear of something going wrong” – it’s about permission to work. The moment a site manager, client, or principal contractor asks for proof of cover, the right documents keep the job moving. The wrong cover (or the wrong assumption) can stop it dead.

Tradesmen insurance vs builders insurance: what’s the difference?

Tradesmen insurance is usually designed for self-employed trades and small firms (plumbers, electricians, carpenters, plasterers, roofers, decorators and similar). It typically bundles or allows you to add:

• Public liability (injury / property damage to third parties)
• Tools and equipment cover (theft / damage, with key conditions)
• Employers’ liability (if you employ staff or labour-only help)
• Professional indemnity (if you design / advise / sign off)
• Van insurance for business use

Builders insurance is often used as a broad label. In practice it can mean:

• Contractors All Risks (CAR) – covers the works in progress and materials (often held by the main contractor)
• Public liability (for the builder/main contractor)
• Employers’ liability (for the builder’s staff)
• Plant and hired-in equipment cover (if relevant)

Key point: a subcontractor’s tradesmen insurance does not automatically replace the builder’s wider “works” cover. On many sites, both exist – but they cover different things.

What insurance do most sites actually expect to see?

On active construction sites, compliance tends to be practical. People want to know: if something goes wrong, is there cover in place and who carries the risk?

1) Public liability insurance (almost always)

Public liability is the one most commonly requested. Typical limits are £1m, £2m or £5m depending on client/site requirements.

• Example: you accidentally damage a client’s finished floor, glazing, kitchen, or landscaping.
• Example: a third party is injured due to your work area or materials.

Behavioural reality: even when the chance of a claim feels low, the cost of being uninsured is catastrophic. People often under-insure because they judge risk by “how it feels” rather than what it can cost.

2) Employers’ liability (often misunderstood)

Employers’ liability is legally required if you employ people. The part that catches firms out is labour-only help, subcontract labour, and “a mate helping out”. If someone is working under your direction, you may need cover.

3) Tool insurance (but check the exclusions)

Tool cover is popular, but it’s where many claims get rejected. Insurers commonly apply conditions such as:

• Forced entry requirements
• Tools left in a locked van overnight (may require an approved alarm / tracker / secure compound)
• Unattended tools on site (often limited)
• Single item limits and total limits

Practical takeaway: tool insurance is only useful if your storage habits match the policy conditions. If not, your “cover” exists mainly on paper.

4) Business van insurance (commuting cover is not enough)

If you use a van for work, you typically need business use cover. Policies vary, and what counts is the declared usage and who is driving.

5) Professional indemnity (trade-dependent)

Not every trade needs PI. If you provide advice, specification, design, or sign-off, PI becomes relevant – especially on commercial work.

Common “builders insurance” gaps that cause problems

If you want a page to rank for builders insurance, it must address what builders actually get caught by. Here are the real-world issues that trigger disputes:

• Assuming the main contractor’s policy covers subcontractors (it may not, or only in limited ways).
• Unclear responsibility for damage to the works (CAR vs PL vs contract clauses).
• Materials stored on site (coverage may depend on where/how they’re stored).
• Hired-in plant (some policies exclude or cap hired equipment).
• Incorrect business description (insurers can decline claims if the trade activity wasn’t declared accurately).

Operator view: most costly problems happen when a claim occurs and everyone discovers the policy wording doesn’t match how the site actually ran day-to-day.

How to choose tradesmen insurance (without getting lost)

Rather than chasing “the best” provider, focus on fit-for-purpose cover. Here’s a short checklist that improves your odds of buying the right policy:

Step 1: Match the cover to how you really work

• Do you work domestic, commercial, or both?
• Do you use heat work, work at height, or do higher-risk tasks?
• Do you store tools in a van overnight?
• Do you ever use labour-only support?

Step 2: Choose realistic limits

• Public liability: pick the limit your typical client/site expects.
• Tools: insure replacement cost, not a hopeful guess.
• Excess: can you actually afford the excess if you need to claim?

Step 3: Read the exclusions that matter

Don’t read everything. Read what can actually ruin you:

• Tool storage conditions
• Work at height / roof work limitations
• Heat work / hot works requirements
• Subcontractor and labour-only clauses
• Territorial limits if you work across borders

Where people typically get quotes

Many trades start with comparison sites or direct insurers, then move to a broker for anything non-standard. Here are common starting points:

• Simply Business
• Hiscox
• AXA
• Direct Line for Business
• Compare the Market (business insurance)
• GoCompare (business insurance)
• MoneySuperMarket (business insurance)

Note: This list is provided for convenience, not as advice or a ranking. Always check suitability and policy wording for your trade and working methods.

A simple comparison table: what each policy is for

Why this matters on real sites (the compliance angle)

On busy sites, the commercial reality is simple: delays cost money. Insurance is part of the “friction removal” that keeps projects moving – alongside access, logistics, and site welfare.

At euroloo, we work around live sites every day. We see the practical side: what gets checked, what gets missed, and what causes disputes when something goes wrong.

If you’re running a small site (extensions, refurb projects, small commercial works), dependable welfare provision also reduces disruption and keeps teams productive.

Portable toilet hire is one of the simplest ways to keep a site functional without adding complexity.

Frequently Asked Questions

Do I legally need tradesmen insurance in the UK?

Some covers (like employers’ liability if you employ staff) are legal requirements. Others (like public liability) are not always legally required, but they are commonly required by clients, principal contractors, and commercial contracts.

What insurance do builders need?

“Builders insurance” often includes public liability, employers’ liability, and sometimes contractors all risks to cover the works and materials. The right combination depends on the project type, contract terms, and whether you are the main contractor.

What level of public liability cover do tradesmen usually buy?

Common limits include £1m, £2m, and £5m. Many commercial clients and sites prefer higher limits. Always align your cover with your typical project requirements.

Does tool insurance cover theft from my van overnight?

Sometimes, but many policies include strict conditions (locked van, forced entry evidence, security requirements, item limits). Check the policy wording carefully and make sure your real working habits match the conditions.

If I use subcontract labour, do I need employers’ liability?

Often yes – particularly if workers are under your direction or working labour-only. If in doubt, speak to your insurer/broker and describe your setup accurately.

Is this article insurance advice?

No. This is general information to help trades and builders understand common site expectations and policy types. Always check policy wording and take professional advice where needed.