When you first begin exploring insurance options, it can feel overwhelming finding a policy that best suits your business, especially with so many choices available. To make things easier, we are breaking down the key details of each type of cover we offer, so you feel informed and confident before we speak. Let’s start with our Annual Contractors Combined insurance, what it includes, who it’s designed for and why it could be the right fit for your business.

What is Annual Contractors Combined Insurance?

When choosing insurance, it’s essential to choose cover and a provider that truly aligns with the unique needs of your business.

Annual Contractors Combined Insurance is a versatile option that benefits a wide range of businesses in the construction sector. We have developed a product that’s both comprehensive and adaptable with the aim of offering essential protection, tailored to the specific demands of your industry and business needs.

It’s not just about meeting the needs of your current projects, but also about partnering with an insurance provider who has the ability to scale that protection as your contracting work evolves if needed.

This policy brings together multiple key covers into a clear, all-encompassing plan, offering simplicity, flexibility and the confidence that your business is properly protected.

What does our appetite cover?

Our appetite for risk is both extensive and can be tailored to the needs of your project.

Our appetite is as follows so you can further decide whether this type of cover will be most beneficial to you:

• Residential, Commercial & Industrial
• Light Civils
• General Builders
• Mechanical & Electrical
• Renovation Contractors
• Specialist Installation Contractors over 120 trades

What are the key policy covers of our Annual Contractors Combined insurance?

Employer’s Liability

Employer’s liability is cover for injury or illness of any staff members or employees which has arisen on the job or because of the work carried out where the employer is legally liable.  It is a legal requirement and forms part of the Employer’s Liability (Compulsory Insurance) Act 1969 whether this be for labour only sub contractors, direct employees, temporary or agency staff, apprentices and anyone employed by the business. 

Scope of Cover is usually for:

• £10 million limit of indemnity

• Legal costs defending a claim

• Compensation for injured employees

Working example of the coverage:

A carpenter hires a labour only sub-contractor for a job, the employee then falls through the garage roof as a result of a lack of fall protection so they claim compensation for their injuries. 

If liable the Employers Liability would cover:

• Legal defence costs

• NHS recovery charges

• Any awarded damages

It won’t typically cover:

• Bona fide subcontractors who carry their own insurance and work independently without direction

• Close family members where the sole trader is the only person working in the business

• Sole employee one man band operations i.e. a director with no other staff

Public and Products Liability

Public and products liability cover refers to coverage in respect of third-party damage and also any injury arising from business operations or completed works/products or where there is negligence.  Whilst not legally required like Employer’s Liability, it is a protection that should be considered for any contractors who work with third parties, the public or on third party premises.

Scope of cover is usually for:

• £1, £2 or £5m primary cover with excess of loss cover should higher limits be required

• Legal defence costs

• Compensation and damages awarded by the court

• Third party property damage

• Injury to third parties

Usually this is a contractual requirement, so it is carried now as standard by most contractors and it allows for work to be carried out such as:

• Local authority contracts

• Main contractor subcontracts

• Domestic contracts such as small house refurbs

• Working example of the coverage

An electrician is rewiring a property and due to a lack of management of the site they accidentally leave cables trailing through the hallway.  The client, the third party, trips on a wire and as a result of the fall breaks their wrist suing for damage as a result of the electricians negligence. 

If liable the Public Liability would cover:

• Legal fees

• Compensation to the client

• Any associated costs

It won’t typically cover:

• Faulty workmanship and other policy exclusions depending on the insurer

• The contract works being carried out

• The employees, directly insured by Employer’s Liability

• Non Negligent damage as a result of carrying out the works, covered by 6.5.1 under contract

Employee Tools

This is exactly what it sounds like, cover is for the loss or damage of employee’s own tools used whilst working on your project and in connection with works undertaken whilst under your contract.

It is usually sub limited and with a lower excess than on the main policy. It should be remembered that this is for personal tools and does not offer cover for unusual or unique items.

Working example of coverage:

A contractor arrives on site finding the storage container used for overnight tool storage is broken into and his personal power tools are taken.  Site CCTV confirms it was a forced entry, no suspects identified and claim upheld.  Total loss of £1,400 for tools, batteries and hand tools stolen.  Cover on the policy is limited to £2,500 per employee and a £100 excess applies.

Insurers accept the claim on the basis that it met the locked and secure conditions and was on a secure site along with the evidence of forcible entry.  Claim paid on basis of loss less excess paid to the employer who may then reimburse the employee for the tools stolen or replace the tools with the claim payment.

It won’t typically cover:

• Wear and tear – considering the lifespan of a working drill for instance

• A policy will often require specific steps in relation to storage and location

• It may not operate cover unless at or adjacent to the contract site

DE4 (95) Defects Exclusion as Standard

This coverage excludes liability for costs associated with repairing or replacing defective materials or workmanship.  This is wider than standard market cover and offers a comfort with more technical work being carried out.

DE5 (95)/LEG 3 (96) depending upon risk information

This is a much broader cover for defects and associated consequential losses.  Cover here would usually be for projects such as stadiums, cantilever roofing or architecturally complex risks and is the maximum cover offered in the market.  It may also be a contractual requirement on a contract for a local authority.

Testing and Commissioning periods

Our Annual Contractors Combined product can be extended to include testing phases.  It can also be extended to include bespoke testing and commissioning endorsements to suit the client including but not restricted to hot and cold testing and extended periods.

Maintenance Periods

Provision for cover during defined maintenance or rectification periods after the project is completed.

Provision for Joint Names/Multiple Insureds/Vitiation clauses

This means our cover is flexible in including required parties under join names, with cover to protect against vitiation due to breaches made by one particular named insured.

Our goal is to ensure clients have direct access to our experienced team of Underwriters for their Annual Contractors Combined needs. We take great care in protecting your business, with a dedicated team that’s passionate about delivering robust, tailored insurance solutions.

Who needs Annual Contractor Combined insurance

Working in a construction or trade industry means that you are susceptible to a variety of risks. From accidental damage to tool theft, making sure you are covered is important in protecting your assets and business. Annual Contractors Combine Insurance offers comprehensive cover in a year-round solution. This makes it an essential for most trade industries. 

Construction and trade businesses

These businesses need cover for public liability, tools, plant and contract works. They will also need employers’ liability should they have people working for them.

• Builders, Painters and Decorators.

• Electrician, Roofers, Carpenters and Joiners

• Bricklayers and Groundworkers

• Plumbers

Self-employed contractors

This would include anyone required to protect tools, public liability or hired-in plant not directly employed by the company, typically paying their own PAYE tax, having no sick pay or holiday entitlement. The self-employed person could be working under a contractor or on their own projects and would typically be required to arrange and carry their own public liability insurance such as window fitters.

Main contractors and Subcontractors

In some cases, there will be specific requirements which contractors and subcontractors have to have in terms of cover. This could include liability and site activities.

Firms managing multiple sites

The Annual Contractors Combined Insurance is a great option for those who work across various locations and need one consolidated policy to cover all projects, year-round.  This will offer a wide insurance solution taking into account all of a client’s risks being worked on during the period of insurance and is flexible enough to be amended mid term should the need arise.

All contractors and developers have legal and contractual obligations and in carrying out a contract this usually means they need to hold insurance covers;

This includes;

• Employers’ liability insurance

• Public Liability Insurance

• Product Liability Insurance

• Contract works

Annual Contractors Combined Insurance Conclusion

Contractors and developers can take on a number of projects under an annual policy.   These come with a range of risks that can lead to significant and costly setbacks. That’s why it’s essential to have the right insurance cover in place from the start. If you’re looking for a tailored Annual Contractors Combined insurance policy, you are in the right place. Our team of experienced underwriters are here to help you make the right choice, suitable to your business needs. Get in touch  with us for more information.

Back to posts