Most Building Contractors would have the basic range of insurance covers those being Public Liability, Employers Liability and Contract Works.

But from our experience, and especially the smaller Building Contractors, the two usual areas of insurance cover that are neglected are:

  1. Warranty Insurance (also known as Latent Defects Insurance)
  2. Insurance Backed Guarantee (IBG or Workmanship Warranty)

The former covers faulty design/workmanship/material problems/defects for a period of up to 12 years. Negligence does not need to be proven, just proof of faulty workmanship.

These policies are also assignable so they can be passed on from buyer to buyer.

The latter protects the purchaser of a property in the event that a contractor ceases to trade or goes bust as there would be no recourse available to the property owner. The Insurance Backed Guarantee would replace the ‘guarantee’ the contractor would have given.

Both the above insurance policies are priced on the contact value so for small contracts the premiums to be paid would be relatively inexpensive.

Titan Insurance have over 30 Years Experience in his area – If you require further guidance or advice, please get in touch with our Construction Team on 0207 731 3700 or Email Us at: