Are There Penalties for Builders Who Don’t Have Insurance?

Having no builder’s insurance is highly unwise; it comes with a range of serious potential risks and sanctions. Insurance provides you with essential protection, as it can your customers. Here at the CPA, we’ve looked at some of the different types of builder’s insurance available and their associated risks.

Financial punishments

How will the Consumer Rights Act affect trade?If you’re a limited company, or you employ one or more people, employer’s liability insurance is a legal requirement. You can be fined £2,500 for every day that you are not properly insured. Plus, if you do not display your employer’s liability certificate, or refuse to provide it when asked by an inspector, you can be fined £1,000. As this type of builder’s insurance covers compensation claims from employees, it protects you financially if one were to make a claim. Otherwise, you could have to pay out huge amounts in compensation and legal costs. This may not be such a problem for large companies, however smaller ones could easily find themselves bankrupt.

A lack of confidence in your business

Public liability insurance offers third party protection whilst work is carried out on a property. Essentially, if someone or someone’s property is damaged whilst you are working there and legal action is taken against you, you are covered to pay for any legal costs/compensation. However, if you’re unprepared to offer this cover, potential customers are unlikely to want to hire you. An online forum discussing the issue makes it very clear that several homeowners will not hire businesses without it. And, loss of business inevitably leads to loss of income.

Accidents happen

Due to the nature of building work, it is inevitable that the odd accident will occur from time to time. But, what do you do when that particular accident results in a broken leg? Can you afford to have two months off work without a single day of sick pay? Having some personal accident insurance protects you in such an event. Paying a weekly benefit if you’re off temporarily, it pays out a lump sum in the unlikely case that you’re unable to return to work too.

By not having insurance, builders are putting themselves and others at considerable risk. Whilst not all insurance is a legal requirement, it often provides necessary protection. With so many possible risks, all builders should seriously consider some. Here at the CPA, we only accredit businesses with the right credentials and a proven track record. If this sounds like you, get in touch about joining us today.