Category: Blog

The contractors all risks market is beginning to loosen. Two October announcements point to a more accommodating picture: HSB’s Contractors All Risks appetite has widened, with higher limits and reductions for some trades, while Marsh has launched two construction facilities focused on road risks and contractors’ plant.

For contractors, especially those planning work across Essex, Kent and London, that is welcome news. But it needs to be read carefully. A lower price or higher available limit does not automatically mean your existing policy covers more, or that its limits fit your next job. I think the practical opportunity is to check whether the cover still matches your workload, rather than simply bank a cheaper premium.

1. What actually changed: more capacity, wider terms

In an announcement dated 13 October, Commercial Express said base rates for HSB’s Contractors All Risks cover had reduced by approximately 15 per cent across several core trades: builders, bricklayers, fencing contractors, gardeners and stonemasons. It also announced new discounts of up to 50 per cent relating to no claims discount, voluntary excess, security, turnover and contract length. The available discount will depend on the applicable terms and circumstances.

Some limits have increased too. The contract works turnover limit moved from £5 million to £10 million, and the maximum contract value from £1.5 million to £3 million. Before referral, the own plant limit rose from £250,000 to £1 million and the hired-in plant limit from £250,000 to £500,000, alongside increased any-one-accident limits.

These are significant changes to the particular HSB proposition described in the Commercial Express announcement. They are not automatic changes to every contractor’s policy or a general market-wide increase in cover.

The announcement shows an insurer prepared to offer wider appetite and higher limits on this scheme. For contractors, that may mean more options to consider when reviewing Construction Contractor Insurance, but the policy wording, eligibility and declared risk still matter.

2. A limit that was fine before may not fit your work now

The increased turnover, contract value and plant limits are a useful prompt to review your own figures. They also suggest the kinds of limits that may need attention as a contractor’s workload and equipment needs change. A limit chosen for an earlier stage of the business may no longer reflect the largest job in your current pipeline.

Check your contract works turnover limit against the work you expect to undertake, and your maximum contract value against your largest current job. For plant, look at the highest value of owned equipment you could have at risk, and the value of hired-in plant that may be on site at the same time. An increased limit on a market scheme is not a reason to assume your own policy has kept pace.

It is worth being precise about what you are asking for. Contract works turnover, maximum contract value, own plant and hired-in plant are different checks; a higher figure in one area does not resolve a shortfall in another. Ask your broker to confirm the limits and how they apply, not just whether the premium has fallen.

If you want a broader review of the cover involved, our guide to Construction Contractor Insurance explains why project details and policy sections need to be considered together.

3. A wider trade list does not mean automatic cover

The HSB announcement adds 31 trades to its separate Contractors All Risks appetite and says up to three trades can be covered without referral on that dedicated product. Among the newly listed trades are joiners, lift engineers, rendering contractors, door entry system installers, electric vehicle charging point installers, gas fitters, plant hire businesses and exhibition stand erectors.

That can make it easier for more contractors to be considered. But “can be quoted” is not the same as “automatically covered”. What you tell the insurer about the work remains important. A joiner who also takes on fitting work, or an EV charging point installer whose jobs include other electrical tasks, needs to describe the actual activities accurately. The work that feels incidental to the business may still be relevant to underwriting.

This is an area where a short description on a proposal can miss important detail. Tell your broker about the full range of work, including occasional jobs and changes in what you undertake. If you are looking at General Contractor Liability Insurance, the same practical point applies: the description of the business should reflect the work being done, not just the main trade name.

4. Rates down is not the same as cover up

A discount can help, but it does not, by itself, improve the cover. The announced discounts relate to factors including claims history, voluntary excess, security, turnover and contract length. Check what applies to your circumstances and what the policy requires. A lower premium on a basis that does not reflect the job you are doing can be a false saving.

I’m cautious about buying contractors’ cover through a question set alone. It can be a convenient starting point, but a project often has details that need a conversation. Does the job sit under a JCT contract? Who supplies and operates the plant? How long will the site or road remain open to traffic? These details can affect what an insurer needs to understand before it considers the risk.

The point is not that one contract form or site arrangement automatically creates a problem. It is that the insurer needs an accurate account of the work and responsibilities to assess the cover. A broker’s job is to bring those details into the discussion, then check the terms offered against the contractor’s real requirements. Our commercial combined insurance information is also relevant for businesses considering how different covers fit together, though the appropriate arrangement depends on the business and the policy.

5. Where the new capacity may genuinely help

Marsh announced two new UK construction facilities on 19 October. Strada is project-specific insurance for UK road contractors, covering construction all risks (CAR) and third-party liability (TPL). Its road and highway clauses address extensions, open-to-traffic phases and phased completions. The announcement gives confirmed limits of up to £1 billion for CAR and up to £1 million for TPL, and says the facility includes two months’ free extension cover.

That focus matters because a project can be open to the public before formal handover. Marsh’s Head of Global Contractors, Guy Fitzgibbon, highlighted that road and highway work periods are frequently extended and roads are often open to traffic before handover. Contractors should make sure the duration and stages of the work are discussed, rather than assuming a standard project description tells the whole story.

Marsh’s second facility, Machina, covers contractors’ plant and equipment for both standalone placements and annual construction programmes. It uses a single pre-agreed rating matrix for consistent pricing, with capacity tailored to individual placements. For contractors managing plant across a programme, that may be a useful development to discuss with a broker.

The HSB announcement also cites increased authority for timber-framed projects. That is another market development contractors with relevant work may want to raise when reviewing options, while still providing the project details insurers need.

Fitzgibbon said the UK construction industry is forecast to grow by 3.2 per cent annually between 2027 and 2030, driven by data centres, transport infrastructure and housing. That forecast is a reason to plan ahead: consider what upcoming work could mean for contract values, plant needs and the length or phasing of projects, rather than focusing only on this year’s renewal price.

Use the easing to review, not just to save

At renewal, have a conversation that tests your limits against your current work and pipeline. List every trade you undertake, including smaller or occasional activities, and confirm your arrangements for owned and hired-in plant in writing. If road or highway work is involved, discuss phasing, extensions and any periods when the public can use the site before handover.

Moyak acts as a business insurance broker in Essex, Kent and London, dealing with the UK’s leading master brokers to help clients find cover suited to their budget and property. The HSB and Marsh developments described here are market developments, not Moyak products or an endorsement of either scheme.

The market may be offering contractors more choice.
The useful next step is to make sure the limits, declared work and policy terms fit the business you are running now.

On 2 October 2026, two construction companies were fined a combined £145,000 after a worker died when a dumper truck overturned at a site in Carrickfergus. The case is a sobering reminder that responsibility on a construction site can be shared, and that having another company on the job does not automatically remove your own duties.

The facts reported by the Health and Safety Executive for Northern Ireland (HSENI) are specific to Northern Ireland, but the practical lessons around workplace transport, contractor oversight and insurance are relevant across the construction industry.

On 26 January 2022, 41-year-old John Traynor, an employee of I.J Lynn and Sons Ltd, was operating a 9-tonne Terex forward-tipping dumper at Knockagh Road, Carrickfergus. The vehicle entered an aqueduct channel and overturned. Mr Traynor was fatally injured.

I.J Lynn and Sons Ltd pleaded guilty to an offence under Article 4(1) of the Health and Safety at Work (Northern Ireland) Order 1978 and was fined £45,000. John Graham Construction Ltd, the principal contractor, pleaded guilty to an offence under Regulation 3(1) of the Management of Health and Safety at Work Regulations (Northern Ireland) 2000 and was fined £100,000.

HSENI found that a late change to the planned works meant John Graham’s risk assessment and method statement (RAMS) were prepared only a short time before work began. The assessment did not make instructions sufficiently clear, leading to confusion among workers. I.J Lynn and Sons failed to provide adequate supervision on the day. HSENI also found that neither company put robust controls in place to prevent the foreseeable risk of the dumper overturning or overrunning into the channel. A suitable bund or stop block was not in place.

1. Both firms were fined: responsibility can overlap

The fines were split between the principal contractor and the subcontractor, with each company prosecuted for its own offence. This matters because construction work is rarely managed by one business alone. A principal contractor may plan and coordinate a site, while a subcontractor supplies workers, plant and specialist skills. Each may have duties relating to health and safety.

A contract can set out who is expected to do what, but it should not be treated as a way to transfer away legal responsibilities. The practical question is whether the controls agreed on paper are clear, suitable and actually followed on site.

Insurance is part of that conversation, but it is not a substitute for safe systems of work. Review your contracts alongside your liability cover: who is responsible for site coordination, supervision, plant movements, and communication when the plan changes? Check how your General Contractor Liability Insurance and subcontract arrangements respond to the work you actually undertake.

Our guide to Construction Contractor Insurance explains why cover needs to reflect the contractor’s specific activities rather than relying on a generic description.

2. RAMS are working controls, not just paperwork

A RAMS document is only useful if it helps people understand what to do, where to do it and what hazards to avoid. In this case, the late change to planned work was followed by a rushed assessment, and HSENI found the instructions were not clear enough.

That is a practical risk as well as a legal one. If the job changes, the work method and risk assessment may need to change too. Allow time to update them, brief the people who will carry out the work, and check that everyone understands the controls before plant starts moving.

Insurers and investigators will look at the circumstances of an incident, not merely whether a document exists. A completed form cannot show that instructions were understood or followed. In my experience, the weak point is often the handover between a revised plan and the people carrying it out.

3. Hiring a competent subcontractor does not replace supervision

HSENI found that I.J Lynn and Sons did not provide adequate supervision on the day to ensure employees followed a safe system of work. The case is a reminder for employers: appointing a subcontractor or supplying a competent operator does not, by itself, demonstrate that the work is being supervised appropriately.

Before the shift, agree who will supervise the task and how changes or unsafe conditions will be raised. On site, supervision needs to be practical: people should know who is directing the work, and someone should be able to intervene if the planned method is no longer safe.

For principal contractors, that means checking that arrangements between firms work in practice. For subcontractors, it means making sure your own employees know the safe system and receive the supervision needed to follow it. Moyak’s general contractor insurance information is a useful starting point for discussing the different covers a contractor may need, but insurance cannot replace competent management.

4. Simple physical controls can make a material difference

The HSENI findings identify an absent bund or stop block as a missed control. A suitable barrier can help keep a vehicle a safe distance from an edge and reduce the risk of it overrunning. The right measure depends on the site and task, but the broader point is straightforward: foreseeable vehicle risks need effective controls, not just warnings.

HSENI Inspector Sophie Pearson noted that dumpers are involved in many construction transport incidents, including overturns on slopes or embankments, and that controls “may be relatively simple and do not need to be complicated”.

That aligns with HSENI’s three workplace-transport principles: a safe site with managed traffic routes, a safe vehicle suited to the task and environment, and a safe driver with the competence and behaviour required to operate it. These principles are useful when planning dumper movements around slopes, channels, excavations and other edges.

Low-cost controls can reduce the chance of a serious incident, but no business should assume that insurance will pay a criminal fine. Fines are penalties imposed by a court; they are generally not an insured loss. Legal expenses or cover for the defence of a health and safety prosecution may be available under some policies or extensions, but the wording, limits, exclusions and insurer consent requirements matter. Ask your broker to check the actual terms rather than relying on an assumption.

5. Tell your broker how you use plant and vehicles

A dumper may be owned, hired or supplied as part of a contract. Those details can affect which policies need to be considered. When arranging or renewing cover, give your broker a clear picture of plant and vehicles used by your business, including hired-in equipment, who operates it and the type of work it is used for.

Also describe the working environment. Regular work on slopes or near water, channels, embankments or open edges is relevant information. Don’t assume that a policy arranged for general contracting automatically covers every plant-related exposure. Depending on the business and contract, the review may include employers’ liability for employees, public liability, hired-in plant, contract works or motor cover. The exact requirements and scope vary by policy and operation.

A commercial combined policy can bring together several areas of business cover, but it still needs to be tailored to the work and checked for relevant limits and exclusions. For firms seeking Business Insurance Essex or Business Insurance London, the useful starting point is an accurate conversation about the work, not a broad label such as “construction”.

Practical next steps for contractors

The £145,000 in fines was imposed after one fatal incident, but the most important lesson is not simply that principal contractors and subcontractors may both face enforcement. It is that each business needs to understand its role, communicate changes, supervise its people and put effective controls around mobile plant.

Before your next project, check that:

• RAMS reflect the actual work and are updated when plans change.
• Site routes, edges and vehicle movements are considered before plant arrives.
• Subcontractor and principal-contractor responsibilities are clearly agreed and understood.
• Employees and operators receive suitable instruction and supervision.
• Your broker knows which plant you own or hire, how it is used and the environments in which you work.
• Your liability and plant policies have been reviewed against your contracts and actual activities.

Insurance can help a business manage covered claims and certain legal costs, subject to policy terms. It cannot undo a fatal event or replace good risk management. If your work involves dumpers or other mobile plant, speak with your broker about your arrangements before the next job begins.

On 20 October 2026, the Health and Safety Executive (HSE) announced that Wedge Group Galvanizing Limited had been fined £566,666 and ordered to pay £15,521 in costs. The sentence was imposed at Bristol Magistrates’ Court on 14 October, following an incident at the company’s Crediton, Mid Devon site on 12 October 2021.

A chain carrying a steel joist weighing nearly three tonnes failed. The beam fell into a bath of molten zinc, sending a wave over a 33-year-old worker. He suffered burns to 40 per cent of his body, spent 11 days in intensive care and underwent 13 operations. He also experienced infection and sepsis, with long-term health conditions.

The HSE found that the chains showed damage and deterioration but had not been withdrawn from service. Mandatory regular examinations had not been carried out. It also found that the sling arrangement was incorrect, so the load exceeded the chains’ safe limit. The risk assessment for “immersion & swilling” did not set out chain checks or the sling configuration.

This case differs from the recent City Electrical Factors prosecution, which focused on lift planning and supervision. Here, the central lesson is the importance of the equipment inspection and maintenance system behind a lift, and how well that system is recorded, explained and reflected in your insurance arrangements.

1. Treat thorough examinations and pre-use checks as separate controls

Under the Lifting Operations and Lifting Equipment Regulations 1998 (LOLER), lifting accessories such as chain slings must be thoroughly examined by a competent person at least every six months, unless an examination scheme sets a different interval. The competent person must have the relevant knowledge and experience to identify defects, and should be sufficiently independent to make an objective assessment.

That examination is not the same as a pre-use check. HSE guidance makes clear that operator checks before use remain necessary. In this prosecution, the HSE also said the LEEA code of practice and the chain manufacturer’s manual called for chain slings used in acidic environments such as galvanizing to be inspected before each day’s use.

Those are distinct parts of a control system: a scheduled thorough examination, any supplementary inspections needed for the conditions of use, and checks before equipment is used. Don’t assume that a current examination report means a sling is suitable for every job or chemical environment. Follow the specific manufacturer’s instructions and seek competent advice where the conditions could accelerate deterioration.

The HSE’s guide to thorough examination explains examination intervals, examination schemes, competent persons and record-keeping.

2. Make sure the examiner is competent, and act on the findings

A statutory examination is only useful if it is done by someone who can assess the equipment and the way it is used. HSE guidance says a competent person needs appropriate practical and theoretical knowledge and experience. They must be able to recognise defects and judge their importance to safe continued use.

For many businesses, this means arranging examinations through a specialist engineering inspection body or other suitable competent provider. Some businesses may use a suitably qualified person within their organisation, but they need to consider whether that person can work independently and impartially. The person who maintains the equipment should not simply sign off their own work without appropriate independence.

Most importantly, don’t treat a report as a filing exercise. Understand what defects were identified, what action is required and whether the equipment must be taken out of service. Keep the report and maintenance history accessible to the people responsible for the equipment. If a damaged sling is tagged out, make sure it cannot quietly return to use.

The HSE guidance also distinguishes examination from routine maintenance: an examination may identify maintenance problems, but it does not replace maintenance. Businesses should maintain equipment throughout its working life, not wait for the next examination to discover obvious deterioration.

3. Match the inspection regime to the actual working environment

A lifting accessory used in a clean, dry workshop may deteriorate differently from one exposed to acids, heat, moisture or corrosive substances. That matters at galvanizing plants, chemical works and other industrial sites, but it can also matter to contractors who use lifting equipment in unusual or harsh conditions.

Start by identifying the equipment, its chain grade, how it is used and what it is exposed to. Then check the manufacturer’s instructions and agree an appropriate regime with a competent person. Where a more tailored approach is needed, LOLER allows for an examination scheme drawn up by someone competent to do so. It can set out what should be examined, how and when, based on the particular equipment and operating conditions.

The HSE’s guidance on lifting operations includes considerations such as pre-use checks and continuing equipment integrity. For this article, the practical point is that inspections must reflect the work as it is actually carried out, rather than relying on a generic calendar reminder.

4. Keep a clear inspection and maintenance trail

Records cannot prevent a chain from wearing, but they help a business see whether examinations happened on time, defects were addressed and equipment was properly removed from service. They can also help show what systems were in place if a serious incident or insurance claim occurs.

Keep reports, inspection logs, repair records and equipment identification details together. Make sure a sling can be matched to its records, and that the people using it know how to report damage or deterioration. Records should be accurate and available, not reconstructed after something goes wrong.

From an insurance perspective, records do not guarantee that a claim will be covered or decided in a particular way. Cover depends on the policy wording and circumstances. But gaps in records, missed inspections or unresolved defects may create difficult questions for insurers and can complicate the investigation of a claim. Good records also help underwriters understand the controls a business has in place when assessing its risks.

5. Tell your broker what lifting equipment and processes you actually use

A business description alone may not tell an insurer enough. A contractor or industrial firm may use cranes, chain slings, hired-in plant or specialist lifting equipment as part of its day-to-day work. The risks can change further where work involves galvanizing baths, corrosive environments or other unusual processes.

When reviewing your cover, give your broker a practical account of the equipment and activities involved. Include what you own, what you hire, what you hire out, how often it is used and where it operates. Ask whether your plant or contractors’ plant arrangements include engineering inspection services, or whether examinations need to be organised separately. The answer depends on the policy and service arrangement, so check rather than assume.

Plant insurance and liability cover serve different purposes. Plant cover may protect insured equipment against specified loss or damage, subject to its terms. It does not replace LOLER examinations, maintenance or safe working procedures. Likewise, General Contractor Liability Insurance and other liability policies should be checked against the activities the business has declared and the cover required by its contracts.

Moyak helps businesses assess cover based on their operations, not just a broad trade label. Find out more about Construction Contractor Insurance, general contractor insurance and commercial combined insurance. Businesses seeking Business Insurance Essex or Business Insurance London should make sure their broker understands any specialist plant, lifting and industrial processes involved.

The practical next step

The HSE inspector described the incident as wholly avoidable and said it was shocking that a firm with considerable resources risked workers’ lives through substandard inspection protocols. The company pleaded guilty to breaching Section 3(1) of the Health and Safety at Work etc. Act 1974. Insurance cannot remove a business’s safety duties, and businesses should not expect a criminal fine to be insured.

Review your lifting-equipment register, examination dates, pre-use check process and maintenance records. Confirm who is responsible for arranging examinations and responding to defects. Then tell your broker how your equipment and processes have changed, including any hired plant or work in corrosive environments.

If you are unsure whether your plant and liability cover reflects the work your business actually does, contact Moyak Insurance Services on 01375 392087 or at info@moyakinsurance.co.uk. We work with businesses across Essex, Kent and London to help them review cover against their operations and budget.

On 24 September 2026, W G Carter Limited was fined £120,000 and ordered to pay £5,247 in costs after pleading guilty to breaching Regulation 4(1) of the Work at Height Regulations 2005. The case followed the death of carpenter Richard “Felix” Roper, who fell through an unsafe first floor during refurbishment work at Manor Barn House in Gloucestershire.

On 30 August 2022, Mr Roper was replacing rotten joists and floorboards while other workers removed flooring in the same area. Large parts of the floor had been stripped back, leaving open gaps between joists; some joists were missing or unsecured. He fell to the concrete floor below, suffered severe head injuries and died in hospital the following day.

A joint investigation by the Health and Safety Executive (HSE) and Gloucestershire Police found the work had not been properly planned, appropriately supervised or carried out safely. The HSE served a Prohibition Notice stopping further work at height until adequate safeguards were in place. The company later adopted a safer method: installing joists from below using suitable equipment and keeping people off the first floor during the work.

The HSE’s account of the prosecution is a sobering reminder that renovation work in a private home is still construction work, with real risks and legal duties. The HSE says falls from height accounted for over a quarter of all work-related deaths in 2025/26.

For contractors and refurbishment firms, there are also important insurance lessons. Here are five to consider.

1. A criminal fine and an injury claim are different things

The £120,000 fine is a criminal penalty imposed on the company. Businesses should not expect employers’ liability (EL) insurance to pay a fine imposed for their own offence. Criminal fines are generally not insurable as a matter of public policy, and policy terms may also exclude fines and penalties. The same caution applies to prosecution costs: whether any legal costs are covered depends on the policy wording and circumstances.

A separate civil claim is different. If an employee is injured or killed at work and the employer is found legally liable, EL insurance is designed to cover compensation and associated legal costs, subject to the policy terms and limit. A serious injury or fatality can lead to a substantial claim, but the HSE prosecution and any civil claim are separate processes.

One point is worth being clear about: a breach of health and safety rules does not automatically mean an insurer will refuse every related claim. The response depends on the facts, the policy wording and the legal basis of the claim. But neither should a business assume that insurance will protect it from every consequence of unsafe work. Check your policy and speak to your broker if you are unsure.

2. Domestic refurbishment is not a lower-risk exception

The work at Manor Barn House was taking place in a domestic property, but that does not make the working environment less hazardous or remove an employer’s duties. The Work at Height Regulations apply to work where someone could fall a distance liable to cause personal injury. That can include an opening or gap in a floor, not only a roof edge or ladder.

The HSE’s brief guide to working at height explains that employers must make sure work is properly planned, appropriately supervised and carried out safely. Regulation 4 also includes planning for emergencies and rescue.

Insurance needs the same practical attention. EL relates to employee injury claims. Public liability (PL) may respond to certain claims for injury to other people or damage to their property, but damage to the part of a property being worked on can be treated differently under policy wording. Don’t assume a standard PL policy covers damage to a client’s home or the specific area under renovation. Ask your broker to check the relevant exclusions and extensions against the work you undertake.

3. A Prohibition Notice can stop work, but ordinary cover may not pay for the delay

After the fatal fall, the HSE served a Prohibition Notice stopping further work at height until suitable safeguards had been introduced. That kind of enforcement action can mean a project stops while a business reviews its method, makes the site safe and arranges a compliant way to continue.

The financial impact may include lost working days, remobilisation costs, disruption to other trades and pressure on contractual deadlines. But a stop-work notice does not automatically create an insured loss. Contract works insurance is generally concerned with accidental physical loss or damage to the works, while business interruption cover commonly depends on insured physical damage. Pure delay caused by a notice or unsafe working method may not be covered unless a specific extension applies.

Review your contract works and business interruption arrangements with your broker, and check whether any relevant delay or non-damage extension is available and suitable. Do not assume a policy will cover delay costs simply because the project has been interrupted.

4. Safer methods can also help manage insurance risk

The HSE’s approach to work at height is to consider whether the work can be avoided, then how falls can be prevented, and then how the distance and consequences of a fall can be minimised. In this case, the company later adopted a method of installing joists from below and keeping workers off the exposed first floor while the work was done.

That is a practical example of changing the method rather than relying only on workers to take care around dangerous openings. For refurbishment firms, the right approach depends on the job, the structure, access and the equipment available. Where work at height cannot be avoided, the plan should set out suitable equipment, safe access, protection against falls, supervision and rescue arrangements.

Insurers assess the risk they are asked to cover. A clear, credible approach to controlling hazards can help a broker present your business accurately and find appropriate terms. It does not guarantee a lower premium, but sound risk management can help prevent accidents and reduce the chance that a poor claims record will make cover harder or more expensive to arrange.

5. Tell your broker what work at height you actually do

A description such as “builder” or “refurbishment contractor” may not tell the whole story. Your broker needs to understand whether your team works on roofs, carries out loft conversions, replaces floor joists, uses scaffolding or access platforms, and whether you use employees, labour-only subcontractors or other subcontractors.

Be open about the types of work and the way they are carried out. If the insurer has imposed a height limit, specific safety condition or other restriction, ask your broker to explain what it means in practice. A policy is not automatically invalid just because a safety failure has occurred, but incorrect or incomplete information, or a relevant policy condition that has not been met, may create complications when a claim is assessed.

Keep risk assessments, method statements, briefings, equipment checks, supervision records and rescue plans current and relevant to the job. A method statement that does not reflect the actual layout or sequence of work will not help the team manage the risks. In the W G Carter case, several workers were working in the same area while flooring and structural supports had been removed. Work sequencing and access control are important parts of the plan, not details to leave until the site is open.

You can read more about choosing cover in our construction contractor insurance guide, explore general contractor insurance or review the options available through commercial combined insurance.

Review your method and your cover

Felix Roper’s death was preventable, according to HSE principal inspector James Lucas. His loss is first and foremost a tragedy for his family and colleagues. For contractors, the case also shows how quickly unsafe work at height can lead to fatal consequences, enforcement action and serious financial pressures.

Review how your business manages openings, exposed joists and other fall risks. Check that the method is properly planned, the right equipment is available, workers understand the sequence of work and access is controlled. Then ask your broker to review whether your EL, PL and contract works cover reflect the work your business actually undertakes.

Moyak Insurance Services works with businesses across Essex, Kent and London. For a free insurance review, contact our team and tell us about your work, your projects and the cover you currently have.

On 16 October 2026, City Electrical Factors Limited was fined £4 million and ordered to pay £6,304 in costs at Birmingham Magistrates’ Court. The prosecution followed a serious loading incident at the company’s Proteus Switchgear Industrial Division in Telford.

Two years earlier, on 4 October 2024, a 40-year-old employee was acting as a “spotter” while a forklift loaded equipment onto a flatbed lorry. The 231kg load was not secured to the forklift. It fell on him, causing brain and spinal injuries so severe that he now lives in a care home and requires 24-hour care.

The company pleaded guilty to breaching Section 2(1) of the Health and Safety at Work etc. Act 1974. The Health and Safety Executive (HSE) found there had been no risk assessment or lift plan, and employees had not been given appropriate information or instructions for an activity that happened regularly. It also found the load could have been attached to existing forklift anchor points, while the lorry-mounted crane was a safer alternative.

For construction contractors and small businesses, this case is a sobering reminder that a familiar, routine task can still carry serious risks. It also makes one point about insurance clear: a policy cannot remove an employer’s safety responsibilities, and it will not pay a criminal fine. Here are five practical lessons to take away.

1. A fine and an injury claim are not the same thing

The £4 million fine was imposed as a criminal penalty following a health and safety prosecution. It is not the same as compensation awarded or agreed in a civil claim, and businesses should not expect their insurance to pay a fine imposed for an offence. Policy wording and applicable law matter, but criminal fines are generally uninsurable.

An injured worker’s civil claim is a separate matter. Where an employer is legally liable for an employee’s injury or illness arising from work, employers’ liability (EL) insurance is designed to cover compensation and associated legal costs, subject to the policy terms and limit.

That distinction matters because the scale of a criminal penalty does not tell you the eventual value of an injury claim. In a catastrophic injury case, compensation can involve long-term care, loss of earnings and other substantial costs. A £10 million EL limit is common, but it is not automatically enough for every severe claim. Review whether your limit fits the nature and scale of your work, and ask your broker whether a higher limit or excess-layer cover is available.

The HSE’s account of this prosecution is available in its press release.

2. Check who is covered by your employers’ liability policy

In Great Britain, most employers must have employers’ liability insurance. The statutory minimum is £5 million, while many policies provide a £10 million limit. Check your arrangements rather than assuming a certificate covers every person working around your business.

The incident involved an employee carrying out a spotter role. Employees are not the only people whose status needs thought, however. Agency workers, casual labour, temporary staff and people engaged through labour providers can raise questions about which organisation is their employer and which policy responds. The answer depends on the working arrangements, legal status and policy wording.

If a worker is injured while unloading a delivery or assisting with a lift, uncertainty about who employed them can complicate an already difficult situation. Tell your broker how you use agency workers, casual labour and subcontractors. Ask specifically whether the policy arrangements reflect that setup, and who must arrange EL cover for each group.

3. Keep records of the plan, the assessment and supervision

HSE found no risk assessment or lift plan for the loading activity in this case. That absence was not just a paperwork gap: it pointed to a failure to work out how the load would be lifted, secured and moved safely, and who was responsible for the different steps.

HSE guidance says lifting operations should be planned by people with suitable competence, organised and supervised in proportion to the risks. A plan should address foreseeable hazards, the people and equipment needed, the sequence of work and the responsibilities of those involved. The detail should be proportionate: a routine operation may be covered by a suitable general plan, but that plan needs to be reviewed if conditions or equipment change.

The HSE guidance on planning and organising lifting operations is a useful starting point. On site, make sure the records are practical and current, not just filed away. They should reflect the actual load, equipment, location, people and method being used. Brief the team before the operation, check that workers understand their roles, and record changes when the conditions differ from the plan.

4. Delivery gates are not the end of a contractor’s responsibilities

Loading and unloading may happen at a warehouse, a supplier’s yard or a construction site, but the risks do not disappear when a vehicle arrives. HSE inspector Keeley Eves described loading and unloading as among the most hazardous transport activities in the workplace. A delivery can expose workers to moving vehicles, unstable loads, lifting equipment and poor coordination.

On projects with more than one contractor, the principal contractor has duties under the Construction (Design and Management) Regulations 2015 to plan, manage, monitor and coordinate the construction phase. That includes making suitable arrangements for deliveries and unloading as part of site-wide coordination. The contractor carrying out a particular lift also remains responsible for managing its own work and ensuring it is properly planned and carried out.

In practice, agree the delivery time, vehicle access, unloading location, lifting method and exclusion arrangements before the vehicle arrives. Make sure the person in charge on site and the delivery team understand who is doing what. If the intended equipment or location is unavailable, stop and review the plan rather than improvising around a changed situation.

5. Tell your broker what happens on site, not just what your business is called

Insurance is arranged around the activities and exposures a business declares. If your team uses forklifts, loads lorries, carries out lifting operations, or regularly has employees acting as spotters, tell your broker. A broad description such as “building contractor” or “wholesaler” may not give enough detail to check whether the policy fits the work.

Ask your broker to review the relevant cover, including employers’ liability limits and any policy conditions that may apply to the activities you carry out. Check who is responsible for insuring agency and temporary workers, and whether your contract requirements call for particular limits or evidence of cover. If you rely on a legal expenses or health and safety prosecution extension, check exactly what it covers: legal advice or defence costs may be covered under some policies, but that does not mean the fine itself is insured.

Moyak's construction contractor insurance guide explains why cover should reflect the work you actually do. You can also explore general contractor insurance and commercial combined insurance.

The practical next step

This prosecution is not a reason to assume every routine lift will result in a major incident. It is a reminder to make sure routine work has been thought through, equipment is suitable, loads are secured, people know their roles and supervision matches the risk. Where a safer method is available, it should be considered before work begins, not after an accident.

Take a fresh look at your lifting and delivery arrangements. Review your risk assessments and lift plans, check how agency or casual workers are engaged, and speak with your broker about the activities and limits shown in your insurance programme. If you are unsure whether your cover reflects how your business operates, contact Moyak Insurance Services on 01375 392087 or at info@moyakinsurance.co.uk. We work with businesses across Essex, Kent and London to help them assess cover against their needs and budget.

For contractors, a thinner pipeline can mean more than fewer enquiries. A project put on hold may leave work, materials or equipment exposed, while a drop in turnover can make insurance costs harder to manage. It is understandable to look for savings, but cutting cover without checking what risks remain can create a bigger problem when work picks up again.

The latest planning figures show the pressure in the housing pipeline. England recorded 45,315 approvals for new homes in Q2 2026, the lowest quarterly total since 2012. The 12-month total was 214,515, the lowest since 2013 and 36% below the 2017 peak, according to IN Site and the Architects’ Journal.

These are planning approvals, not a direct measure of homes completed or construction output. But fewer permissions can mean fewer potential projects moving through the pipeline. Separately, GB News reports that housebuilding output has fallen around 11%, putting the 1.5 million homes target under pressure.

The squeeze is particularly sharp for smaller builders. Savills reports that full planning permission now takes nearly 12 months on average in England. The latest Home Builders Federation SME survey says development viability and planning delays remain major constraints, and 36% of respondents had already delayed, redesigned or cancelled schemes in anticipation of the Building Safety Levy.

The levy took effect on 1 October 2026 and applies to qualifying schemes of 10 or more homes and student accommodation with 30 or more bedspaces. Brownfield sites receive a 50% discount, while schemes below the relevant thresholds are exempt. Smaller sites may therefore represent a greater share of available work, but every contract still needs a close insurance check.

Here are five practical moves to consider when work slows.

1. Update turnover and wage figures honestly

If your business has fewer active projects or employees than expected, tell your broker and check how your policy uses turnover, payroll or wage declarations to calculate the premium. Those figures should reflect your actual business, not last year’s activity or a more optimistic forecast.

It can be tempting to reduce estimates aggressively to bring the premium down. I think that is a false economy. If the figures are inaccurate, the policy may not respond as you expect: depending on the wording and circumstances, under-declaration can lead to a reduced claim payment or other coverage problems. The answer is not to keep paying for exposure you no longer have, but to update it accurately and ask how changes will affect your cover.

Make sure you understand when you need to report changes, too. Some policies are adjusted at renewal, while others require declarations during the policy period. Keep records of wages, turnover and subcontractor costs so that any adjustment can be supported.

2. Tell your insurer when a site is paused

A stalled site is not necessarily a risk-free site. Partially built homes, materials and temporary works may remain vulnerable to theft, vandalism, fire or storm damage. The project may also still leave you with contractual responsibilities, even if no one is currently working there.

Tell your broker or insurer when work is paused, delayed or the site becomes unoccupied. Ask whether your contractors’ all risks or contract works cover remains in force, and whether any site-specific conditions apply. These might relate to security, inspections, heating, water supplies or how materials are stored. Do not assume that an existing policy automatically covers every period of inactivity.

If you need cover to continue for a longer period, agree the position in writing. This is a sensible time to check whether hired-in plant, off-site materials and temporary structures are included, and whether the limits still fit what is actually at risk.

3. Don’t cancel liability cover between jobs

A gap between contracts does not always mean a gap in liability. Someone could make an allegation about work you completed earlier, or an injury or property damage claim might only come to light after the job has finished. The relevant policy and notification terms matter, so check them before cancelling or changing cover.

Employers’ liability insurance is generally a legal requirement for businesses that employ staff. A quieter workload does not remove that obligation if you still have employees. If your business is dormant or close to dormant, check whether anyone remains employed and discuss your position with your broker rather than assuming the policy is no longer needed.

Public liability also deserves a careful review. If you are between projects, the premium may be adjustable, but stopping cover altogether can leave you exposed to claims connected with your work. For a broader review of the cover contractors commonly need, see our guide to choosing construction contractor insurance.

4. Check insurance requirements before accepting smaller or different work

With pressure on larger schemes, contractors may look to smaller developments, brownfield sites or unfamiliar packages. These jobs can provide useful opportunities, but the contract still needs to fit your insurance.

Before signing, check the required public liability limit, any employers’ liability requirements, contract works arrangements and the insurance responsibilities assigned to each party. Look closely at who is responsible for insuring materials, existing structures and work in progress. A contract can require cover that your current policy does not provide, so it is better to find that out before work starts.

Also review professional indemnity if you take on design, specification or technical advice. Defect allegations may surface long after practical completion, and professional indemnity policies can depend on continuous cover and the policy’s retroactive date. If your role changes, or a contract asks you to accept design responsibility, ask your broker to check the wording before agreeing.

We have also covered why a seemingly small contract term can cause problems in the one clause in your contractors insurance that could leave you uncovered.

5. Talk to your broker before reducing or lapsing cover

If cash flow is tight, speak to your broker before cancelling a policy or reducing limits. There may be options to adjust cover to reflect your current activities, review payment arrangements or change how a policy is structured. What is available will depend on the insurer, the policy and the risks you still have.

Be open about what has changed: the number of active sites, staff, turnover, subcontractors, plant and the type of work you are pursuing. That gives your broker a fair basis to explore options. It is much safer than allowing a policy to lapse and discovering later that a risk remained uninsured.

A break in cover may also create difficulties when you seek new insurance or need continuity for claims-made cover, such as professional indemnity. If you are considering a reduction, ask what it means for existing projects and past work, and request confirmation of any agreed changes.

Review the cover around the work you still have

A quieter pipeline calls for a practical review, not a blanket assumption that every policy can be cut. Check that your declarations are accurate, paused sites are properly protected, liability cover remains suitable and new contracts do not bring responsibilities beyond your insurance.

Moyak Insurance Services arranges business insurance for contractors across Essex, Kent and London. Call 01375 392087 or email info@moyakinsurance.co.uk to arrange a cover review.

The Remediation of Unsafe Cladding Bill, introduced to Parliament on 14 October 2026, signals a tougher approach to unsafe cladding in residential buildings in England. For contractors and developers, the message is clear: historic cladding and fire-safety work may bring renewed scrutiny, while delays to remediation could carry serious consequences.

The Bill proposes a legal duty on responsible entities to identify, assess and fix cladding issues without delay. The First-tier Tribunal could impose financial penalties of up to £500,000 for failing to comply with a Remediation Order, and obstruction could lead to criminal penalties. The government expects every building over 11 metres with unsafe cladding to be remediated, or to have a clear completion date, by the end of 2029. Third parties such as Homes England or local authorities could step in if those responsible repeatedly fail to act.

This is not the same as a new 30-year insurance policy or a blanket extension of every contractor’s liability. The 30-year retrospective limitation period for qualifying claims under the Defective Premises Act comes from the Building Safety Act 2022. But the practical effect is important: some historic work can remain within reach of claims for much longer than many businesses might expect.

The recent High Court decision in Taylor Wimpey UK v Taylor Woodrow Construction is a reminder that point. The court allowed a new claim over alleged fire-safety defects at Cardiff’s Victoria Wharf to proceed under the extended limitation period, rejecting an argument that it was an abuse of process. It did not decide whether the alleged defects were proved or who was liable. For contractors, though, the case shows why records and insurance arrangements need careful review.

1. Map the historic exposure, not just current contracts

Start with a timeline of relevant projects, design work, refurbishments and remedial work, including the dates each was completed. Identify the role your business performed and the companies involved, such as developers, designers, subcontractors and product suppliers.

The 30-year period does not apply to every construction dispute or every type of work. Whether a claim can proceed depends on the legal basis and facts. But it is no longer safe to assume that an old project is automatically beyond the reach of a Defective Premises Act claim simply because the usual six-year period has passed.

List the professional indemnity policies, insurers and any run-off arrangements that may be relevant to historic work. If your company has merged, changed name or ceased trading, note that too. Seek legal advice on limitation and potential liability; insurance policies need to be reviewed separately because they respond according to their wording and notification requirements.

2. Check PI notifications and cladding exclusions

Professional indemnity insurance is often central to allegations involving design, specification or professional advice. Check the full policy wording for cladding and fire-safety exclusions, sub-limits, retroactive dates, excesses and how defence costs affect the available limit.

A notification clause may require you to tell insurers about a claim or circumstances that could reasonably lead to one. Don’t wait for formal proceedings if you receive a defect report, a request for documents, a demand for repairs or correspondence suggesting a building is unsafe. Give the broker and insurer the information promptly, follow the policy process, and keep a dated record of what was sent and when.

General contractor liability insurance also needs review, but it is not a substitute for PI cover. Public liability may respond to certain third-party injury or property damage claims, while a design or workmanship allegation may raise different questions. Contractors’ all risks cover is generally aimed at insured physical loss or damage during works, not every historic defect claim. The wording, facts and timing matter.

3. Keep the evidence that explains who did what

When a claim arrives years later, the people who managed the job may have moved on and memories can be incomplete. Preserve contracts, drawings, specifications, change orders, inspection records, handover documents, subcontractor agreements and product information. Keep correspondence about design decisions, defects, fire assessments and any remedial recommendations.

Make sure important records are stored securely and can be found by project and date. Your subcontract agreements should clearly set out responsibilities, insurance requirements and document-retention expectations. This does not prevent a claim, but it can help establish the work undertaken, support a response to allegations and assist insurers in assessing the matter.

4. Treat manufacturer recovery as an opportunity, not a guarantee

The Bill proposes a simpler route for developers, contractors and others who have paid to make buildings safe to seek recovery from cladding manufacturers where their products contributed to the risk. That may help parties pursue costs, but recovery will not be automatic. Evidence about the product, its use, the building and the cause of the defect is likely to matter.

Insurers will also want a clear account of the work, payments, agreements and any legal action. Before admitting liability, agreeing a settlement or waiving recovery rights, check the relevant policy and seek appropriate advice. Keep evidence of the products installed and who selected, supplied and approved them.

5. Review cover before the 2029 deadline becomes urgent

The target for buildings over 11 metres means remediation programmes and related deadlines may gather pace. Review cover before taking on cladding, fire-safety or remedial work. Confirm the required limits for PI, public liability, employers’ liability and contractors’ all risks, and check whether the contract requires insurance to continue for a specified period after completion.

Also review your renewal presentation. Describe the work your business actually performs, including any cladding installation, façade work, design responsibility or remediation activity. Make sure policy schedules and declarations are accurate, and ask your broker to explain exclusions in plain terms. Moyak’s guide to construction contractor insurance and our article on a contractors’ insurance clause that could leave you uncovered are useful starting points.

The Bill is expected to accelerate remediation for around 12,000 residents, while its proposed penalties and recovery provisions sharpen the pressure on those involved. For contractors, the practical next step is to map historic projects, check notification duties and exclusions, and make sure records and current cover match the work being undertaken.

Moyak Insurance Services arranges business insurance for contractors across Essex, Kent and London. Call 01375 392087 or email info@moyakinsurance.co.uk to arrange a cover review.

From 1 October 2026, right-to-work rules in the UK reach further into certain construction supply chains. That matters to main contractors and developers who rely on subcontractors, labour-only arrangements or several tiers of labour supply. A business may face a civil penalty for illegal working further down the chain even if it did not hire the individual directly.

The change is primarily a compliance and supply-chain issue, not a new insurance policy benefit. But it can have serious implications for your insurance arrangements, especially where your business depends on subcontractors or site workers whose employment status and checks are not clearly documented.

In practice, the direct employer or labour supplier remains responsible for carrying out the required right-to-work checks. Upstream businesses need to understand when extended liability could apply, and what contractual and operational steps may help them establish a statutory excuse. This is not blanket liability for every client buying construction work: the facts and contractual structure matter.

The Building report on the new right-to-work regime highlights why construction firms need to look beyond their immediate contractors. For Essex, Kent and London businesses, I think the sensible response is to map the labour chain and review the insurance wording before the next worker arrives on site.

Why insurance needs to be part of the review

The reform does not mean a standard liability policy will pay a right-to-work penalty. Civil penalties and regulatory fines are often excluded from insurance, and deliberate or knowing breaches may create further problems. Do not assume that your General Contractor Liability Insurance or employers’ liability cover will meet a penalty or resolve a compliance failure.

The insurance question is broader: could the way you engage and supervise labour affect your liability for an injury, a claim from a subcontractor’s worker, or your ability to meet a contract? And do your policy terms require you to vet subcontractors or notify insurers about how you use labour?

A certificate showing a limit is not the whole answer. The policy wording, endorsements, business description and the facts of a claim all matter. Here are five checks to make now.

1. Check who is treated as an employee for employers’ liability

Employers’ liability (EL) insurance is generally required if you employ people in the UK. The usual minimum cover is £5 million, although many policies provide a higher limit. See the GOV.UK employers’ liability guidance for the general requirement and exceptions.

Construction businesses should not assume that calling someone a subcontractor settles their status. Labour-only subcontractors, casual workers and others who work under your direction may need closer consideration. The contract label is only one part of the picture.

Review your EL schedule and wording with your broker. Ask how the policy responds to injury claims involving labour-only subcontractors and whether the people you use have been accurately disclosed. Also check that your limit meets the requirements of your main contracts. If the work or labour arrangements have changed since renewal, tell your insurer rather than relying on last year’s description.

2. Look closely at subcontractor and supply-chain clauses

Some policies set conditions for using subcontractors. These can include checking their insurance, obtaining certificates, keeping records or making sure that subcontractors follow specified safety requirements. If you do not meet a condition, it could complicate a claim.

The new right-to-work regime makes the wider chain more important too. For certain arrangements entered into on or after 1 October 2026, upstream businesses may need appropriate written contractual terms and practical controls to support a statutory excuse. Those controls can include right-to-work check requirements, restrictions on unauthorised onward subcontracting, audit rights and steps to confirm that the worker on site is the person who was checked.

That is a legal compliance issue, not a substitute for insurance. Still, check whether your policy requires subcontractor vetting and whether the contract obligations you have accepted match your actual procedures. Where you use sub-subcontractors, find out who is responsible for passing requirements down and keeping evidence.

3. Confirm your liability limits and exclusions

A new statutory penalty may be outside the scope of ordinary liability insurance, but your wider exposure can include allegations that you failed to manage a site properly or took inadequate care in selecting or supervising a subcontractor. Whether a policy responds depends on its terms and the circumstances.

Review your public liability and employers’ liability limits against your contracts and the scale of the sites you work on. Check for exclusions or endorsements affecting subcontractors, labour-only workers, action-over claims or injury claims brought by a subcontractor’s employee against a main contractor. These terms vary between policies, so ask your broker to explain the wording that applies to your own cover.

Also check how defence costs are treated. They may be handled differently depending on the policy and type of claim. If your business has accepted broad contractual indemnities, compare those obligations with the insurance protection available. A policy limit does not automatically insure every promise made in a contract.

4. Check your worker identity and site-access process

A written clause alone may not be enough to demonstrate that compliance controls are working. Businesses in scope should be able to show how workers are checked, how records are kept and how they make sure the person on site is the person who was checked.

A practical site process might include checking identity against an access pass, recording attendance and updating records when workers change. The Home Office employer’s guide to right-to-work checks explains the relevant checking process. If the arrangements are complex, get legal advice on how the regime applies to your contracts and supply chain.

From an insurance perspective, consistency matters. If your policy or contract requires you to vet workers or subcontractors, make sure the people managing site access understand what evidence to collect and where to keep it. A process that exists only in a policy manual is much harder to demonstrate than one followed on each job.

5. Tell your broker what has changed

Insurers price risks using the information they receive. If your business has expanded its use of labour-only subcontractors, begun using recruitment platforms, taken on larger projects or added another tier of subcontracting, that may be relevant to your insurance arrangements.

Make sure your broker has an accurate picture of:

• The types of workers and subcontractors you use.
• Who engages and pays each worker, and whether further subcontracting is allowed.
• Your site-access, identity-check and record-keeping procedures.
• The work you carry out, your turnover and the size of your projects.
• The insurance requirements and indemnities in your main contracts.

This is particularly important when arranging Construction Contractor Insurance. Your cover should reflect how the business operates now, not just the way it was described at the last renewal. Moyak’s guide to construction contractor insurance and general contractor liability insurance explains why the policy label is less important than the cover, limits and conditions.

What to do before the next subcontractor starts

Start by mapping the labour chain on each active project. Identify who is the direct employer or labour supplier, where workers are supplied through subcontractors, and whether the relevant contracts were entered into on or after 1 October 2026. Then check that the right-to-work procedures and contract terms suit those arrangements.

At the same time, review your EL and public liability policy schedules, relevant exclusions and subcontractor conditions. Keep evidence of checks and site controls, and ask your broker to confirm what your insurance does and does not cover. If you are unsure whether a contractual structure is within scope, seek legal advice; insurance cannot replace a proper compliance process.

For contractors looking for Business Insurance Essex, Kent or London, this is a useful moment to review more than the premium. The new rules do not automatically make every main contractor liable, and a liability policy should not be mistaken for protection against a right-to-work penalty. But where your business relies on layered subcontracting, the compliance and insurance questions are now closely linked.

Moyak Insurance Services takes an individual approach to reviewing contractors’ cover and can help you compare your policy with your work and contractual requirements. Call 01375 392087, email info@moyakinsurance.co.uk or visit www.moyakinsurance.org.uk to discuss your insurance review.

The Building Safety Levy came into force in England on 1 October 2026. For developers, it is a new project cost. For contractors and their brokers, the less obvious issue is what happens when that cost arrives after project budgets and insurance values have already been set.

The levy is not itself an insured loss. But it can change the cost and financial picture of a residential scheme, and that can leave project information used for insurance out of date. A value declared at the start of a job should not simply be left untouched while costs, scope and delivery plans move on.

What the levy covers

The levy applies to qualifying residential developments that need building control approval: generally, schemes of 10 or more new homes and purpose-built student accommodation developments of 30 or more bedspaces. It is intended to raise £3.4 billion over 10 years to help fund remediation of unsafe buildings.

The charge is calculated per square metre of chargeable floorspace. Rates vary by local authority area, and eligible developments on previously developed land receive a 50% discount. Affordable housing and specified specialist accommodation are among the exemptions, but the detailed rules matter: eligibility depends on the development and the relevant evidence, not just the project’s informal description.

The location-based rates make the impact uneven. On non-previously developed land, 2,000 sq m of chargeable floorspace works out at about £58,000 in Birmingham, around £76,000 in Basingstoke and Deane, and approximately £127,000 in Barnet. At 10,000 sq m, the examples rise to roughly £284,000 in Manchester, £292,000 in Birmingham and £612,000 in Tower Hamlets.

These figures are illustrations, not a substitute for calculating a project’s actual liability. The government guidance on rates and calculations explains chargeable floorspace, local authority rates and the brownfield discount. The introductory guidance sets out the scope, exemptions and application rules.

How an added cost creates an insurance gap

The levy is payable by the developer client where it applies. That does not mean the levy amount should automatically be added to every insurance sum insured. The right treatment depends on the policy wording and the basis on which the value was declared.

The practical concern is that the levy can prompt changes elsewhere. A scheme may be paused, reduced or cancelled. A developer facing tighter margins may seek lower subcontractor prices or longer payment terms. Scope can change, procurement may be revisited, and programmes may stretch. In turn, the original estimate of the work, materials, contract value or project exposure may no longer describe the job that is actually being delivered.

That is why Markel’s UK Head of Construction Underwriting, Greg O’Neill, has warned brokers to check whether the figures underpinning a client’s insurance still reflect the current position. Declared values, he says, should not be a one-off exercise at the start of a project. SME developers can be particularly exposed because they may have less internal capacity to keep cost and insurance information under review.

For contractors, the same discipline matters. A contractor’s project information may have been prepared using an agreed contract sum, planned scope and expected programme. If those assumptions change, the broker needs to know. The levy is a prompt to revisit the numbers, not a reason to assume that every policy value must rise by the levy amount.

Which insurance figures should be reviewed?

Start with the cover that relates directly to the work and the project, then check the policy terms with your broker.

• Contract works and contractors’ all risks (CAR): Confirm what value the policy asks you to declare and what that figure includes. Check whether the contract value, materials, work in progress and any other relevant components have changed. Make sure any adjustments follow the policy’s reporting requirements.
• Reinstatement sums: These are not necessarily the same as a project’s delivery cost or the amount of the levy. Check what the sum insured is intended to cover and whether construction-cost changes, alterations to the building or revised specifications mean it needs a fresh review.
• Professional indemnity: If your business makes design, engineering or specification decisions, assess whether changes to the project or budget affect your professional exposure. The levy itself does not make a design negligent, but decisions made to manage costs should be properly considered, documented and communicated.
• Employers’ liability: The levy does not automatically change the value of this cover. Still, if the project’s scale, workforce, activities or subcontracting arrangements change, make sure your broker has an accurate picture.
• Contractors’ liability: Review the work descriptions, activities and limits shown on your policy, including any assumptions about the types or scale of projects you undertake. General Contractor Liability Insurance needs to reflect the contractor’s actual operations, rather than an outdated description of the business.

This is also a useful moment to revisit common underinsurance mistakes. The central principle is straightforward: the declared figures and risk details should be consistent with the work being carried out and the terms of the policy.

Application dates and project decisions

Applications submitted before 1 October generally sit outside the levy. However, developers should check that a pre-deadline application was properly made: an invalid or rejected application that has to be resubmitted on or after 1 October can still fall within the levy regime. Keep a record of the submission and validation position, and confirm the treatment against the official guidance rather than relying on an informal understanding of the deadline.

The likely commercial effects will vary. Some schemes may be paused, downsized or cancelled, while others may proceed with tighter subcontractor margins or less favourable payment terms. That is not just a developer concern. Contractors should watch for changes to scope, programme, payment milestones and procurement, and tell their broker if those changes alter the risks or values declared.

There may also be opportunities in smaller schemes below the levy threshold and in brownfield development, which benefits from the reduced rate when the criteria are met. Local contractors across Essex, Kent and London may see work shift towards these types of projects. But smaller projects still need suitable cover, and a brownfield discount does not remove the need to verify the site’s status and the project’s insurance basis.

For firms looking for Construction Contractor Insurance, or reviewing Business Insurance Essex and Business Insurance London, the useful step is a practical conversation about the work actually being undertaken. A broker should understand the project, the contract and the business behind it, not just one figure copied forward from an early estimate.

A practical review checklist

When a project is affected by the levy, contractors and developers can use these questions to start a discussion with their broker:

1. Is the project in scope, and has the levy been calculated using the correct local authority rate, chargeable floorspace and land status?
2. Does an exemption apply, and is the supporting evidence available?
3. Was any application submitted before 1 October valid, or might it need to be resubmitted?
4. Have the contract sum, scope, materials, programme or subcontracting arrangements changed since insurance values were prepared?
5. Do the contract works/CAR declared values and reinstatement sums still match the basis required by the policies?
6. Are professional indemnity, employers’ liability and contractors’ liability descriptions still accurate?
7. Have the broker and insurer been told about material changes, in line with the policy’s notification requirements?

The levy is a statutory project cost, not a substitute for insurance and not automatically an insured value. Its real insurance significance is the possibility that project assumptions become stale while the job changes around them. Review the figures with your broker, keep the supporting records, and make updates when costs, scope or timing materially move. That is a sensible step for both SME developers and the contractors who deliver their schemes.

The short answer is that these terms often describe different parts of an insurance arrangement, not two equivalent policies. “Construction Contractor Insurance” usually refers to a package of covers for a contractor’s business and projects. “General Contractor Liability Insurance” usually means liability cover, such as public liability, for claims made against a contractor.

The wording on a quote can be confusing, and product names are not always standardised. What matters is what the policy covers, what it excludes, and whether it meets the obligations in your contracts. Buying the wrong cover can mean paying for protection you do not need while leaving a real gap elsewhere.

What each type of cover usually means

Construction Contractor Insurance is a broad description rather than one fixed policy. A contractor’s package might combine public liability, employers’ liability, contract works, tools and plant cover. Some arrangements are annual; others are specific to a project. The schedule should show which sections are actually included and the limits that apply.

General Contractor Liability Insurance is also used inconsistently, particularly in search results and product descriptions. In practice, it usually points to liability protection. In the UK, the relevant cover is commonly called public liability or third-party liability. It can help with covered claims if your work accidentally injures someone who is not your employee or damages someone else’s property.

That is not the same as insurance for the building work itself. Liability insurance and contract works cover solve different problems, even if a combined package offers both.

Where the covers overlap, and where they do not

Public liability and contractors’ all risks (CAR), also called contract works insurance, can both be relevant to an incident on a building site, but they insure different interests.

Public liability is for your legal liability to third parties. The limit is usually set by the client or contract, not by a general rule of construction law. Contracts commonly ask for limits such as £2 million, £5 million or £10 million, but the right amount depends on the work and the contract. Check the required limit, the policy wording and any relevant exclusions rather than assuming that the figure on your certificate is enough.

Contract works cover is intended to protect the works and, depending on the policy, materials against accidental physical loss or damage during construction. It does not automatically cover your tools, machinery or hired-in plant; those may need separate sections or policies. The HSB construction policy wording is one example of a policy that separates contract works, owned and hired-in plant, and employees’ tools. The details will vary between policies.

Neither cover should be treated as a guarantee that every project loss will be paid. In particular, a standard policy may not cover:

• The cost of putting right your own defective work. Some policies may cover resulting damage to other, sound work, but the wording matters.
• Design errors or professional advice, which may call for professional indemnity (PI) cover.
• Delay, loss of use, lost profit, liquidated damages or other consequential loss, unless a specific extension applies.
• Tools, owned plant or hired-in plant, unless the relevant cover has been included.
• Your own vehicles. Road vehicles need suitable motor insurance; do not assume a contractor’s package replaces it.
• Contractual responsibilities you have accepted that go beyond what you would normally owe under common law.

The last point can be easy to miss. A contract may ask you to accept a broad indemnity, while your liability policy only covers liability on narrower terms. A certificate showing a limit does not confirm that every contract obligation is insured.

Which insurance is legally required?

In general, the key statutory requirement in this comparison is employers’ liability (EL). If you employ people, you must usually have EL insurance as soon as you become an employer, with cover of at least £5 million from an authorised insurer. There are limited exceptions, so check the GOV.UK employers’ liability guidance for your circumstances.

Construction businesses should pay close attention to how people are engaged. Calling someone a subcontractor does not, by itself, settle their employment status. If you rely on labour-only subcontractors or workers who are closely directed by your business, get advice on whether EL obligations apply.

Public liability and CAR are not generally compulsory under a single construction-insurance law. But a client, main contractor, lender or contract may require them before work starts. CAR or contract works cover is therefore often a practical or contractual necessity, even where the law does not require it.

Check the contract before arranging cover

Do not choose a policy based on the project title alone. Read the insurance requirements in the main contract and check who is responsible for insuring the works, the existing property and the people or organisations involved.

JCT-style contracts use different insurance arrangements depending on the project and the parties’ agreed option. Broadly, responsibility for insuring the works may sit with the contractor or the employer; projects involving an existing building need particular care. The Joint Contracts Tribunal’s guidance on insurance and JCT contracts is a useful starting point, but the contract wording, amendments and policy still need to be checked together.

Confirm the required insured parties and whether joint names or a waiver of subrogation are needed. Also check that the works policy covers the project’s full value, any materials in storage or transit, temporary works and relevant periods after practical completion. Those details are not safely inferred from a policy label.

Declare the real size and shape of your business

Annual policies are often priced using information such as turnover, wages and the types of work undertaken. Project cover also depends on accurate contract values. If your turnover, project values or work have grown, check that the information declared to insurers is still right.

Be clear about what work you do, where you do it, whether you take on design responsibility, and how you use subcontractors. Disclose the subcontractor chain and check that each party’s cover matches the work they are carrying out. A subcontractor’s certificate does not automatically insure your business or prove that their policy covers every activity on the job.

For business insurance in Essex, Kent and London, we regularly see sole traders and small growing firms treat “contractor insurance” as a single box to tick. Common gaps include relying on public liability to cover the works, forgetting hired-in plant, underestimating turnover, or not checking that subcontracting and design activities have been declared. The Insurance Act 2015 explanatory notes explain the duty of fair presentation for non-consumer insurance, including the need to provide material risk information clearly.

Which cover for which scenario?

• You work alone and want protection against claims from members of the public or clients: ask about public liability, checking the limits and exclusions against your contracts.
• You employ staff: arrange employers’ liability as required, alongside the other covers relevant to your work.
• You are responsible for materials or unfinished works: check whether contract works/CAR cover is required by the contract and who must arrange it.
• You own tools, buy plant or hire machinery: confirm what is insured, where it is covered, and whether theft conditions or item limits apply.
• You design, specify or provide professional advice: ask whether PI is needed for that responsibility. Public liability and contract works are not substitutes.
• You are building or refurbishing a property and need protection against certain defects after completion: ask whether a latent defects policy or structural warranty is appropriate. These are not the same as ordinary liability cover, and their scope and requirements depend on the project.

Questions to answer before you buy

Before accepting a quote, ask:

1. What does my contract require, and who is responsible for insuring the works?
2. What public liability limit is required, and do the policy exclusions fit my work?
3. Do I employ anyone, including workers whose status may need checking?
4. Are contract works, tools, owned plant and hired-in plant included, or separate?
5. Have I declared my current turnover, project values, design duties and subcontractor arrangements?
6. Does the contract ask me to accept responsibilities wider than the policy covers?
7. Do I need PI for design work, or a structural warranty/latent defects cover for the completed building?

Construction Contractor Insurance and General Contractor Liability Insurance are not interchangeable labels for the same protection. The right arrangement depends on your work, the people involved and, importantly, what the contract says. Review the contract alongside the policy schedule and wording before work begins, and revisit the cover when your business or project changes.

Moyak Insurance Services can help contractors compare the cover with their work and contractual requirements. For Construction Contractor Insurance, General Contractor Liability Insurance, Business Insurance Essex or Business Insurance London, call 01375 392087, email info@moyakinsurance.co.uk or visit www.moyakinsurance.org.uk.