What’s Included in a Contractor Combined Insurance Policy?

Introduction

If you’re a contractor, you’re juggling a lot: tight deadlines, multiple sites, subcontractors, expensive tools, and clients who expect the job to be done right first time. One incident—an injury on site, a damaged client property, stolen tools, or a fire at your workshop—can quickly turn into a costly claim.

That’s where contractor combined insurance comes in. Rather than buying separate policies for every risk, contractor combined brings several essential covers together under one policy, often with one renewal date and one insurer relationship. It’s designed for trades and contracting businesses that need broad protection without the admin headache.

In this guide, we’ll break down what’s typically included in a contractor combined insurance policy in the UK, what’s optional, and what to watch out for.

What is contractor combined insurance?

Contractor combined insurance is a packaged commercial policy built for contractors and tradespeople. It usually combines:

• Liability covers (public liability and employers’ liability)

• Property-type covers (tools, plant, stock, materials)

• Contract works (the work you’re carrying out)

• Business interruption (loss of income after an insured event)

• Optional specialist add-ons (professional indemnity, hired-in plant, goods in transit, etc.)

It’s commonly used by:

• General builders and building contractors

• Groundworkers and civil engineering contractors

• Electrical and mechanical contractors

• Plumbers and heating engineers

• Joiners, carpenters, and shopfitters

• Roofing contractors

• Decorating contractors

• Specialist trades working across multiple sites

Core covers typically included

Every insurer structures contractor combined slightly differently, but most policies include the following building blocks.

1) Public liability insurance

Public liability covers your legal liability if your business activities cause injury to a third party or damage to third-party property.

Typical examples:

• A client trips over your cable and breaks their wrist

• You accidentally damage a customer’s flooring while moving materials

• Dust from your work triggers a respiratory issue for a visitor

What it usually pays for:

• Compensation awarded to the injured party

• Legal defence costs

• Associated expenses (subject to policy terms)

Common limit levels:

• £1 million, £2 million, £5 million, or £10 million

What to check:

• Whether the policy covers work away from your premises (most do)

• Any restrictions on certain work types (e.g., heat work, roofing height limits)

• Whether “products liability” is included (often bundled)

2) Products liability insurance

If you supply, install, or fit products, products liability covers claims arising from products you have supplied after they’ve left your control.

Examples:

• A fitted component fails and causes damage

• A product you supplied causes injury due to a defect

For contractors, products liability is often included within public liability, but it’s important to confirm.

3) Employers’ liability insurance (often required by law)

If you employ staff—full-time, part-time, temporary, labour-only subcontractors (in some cases)—you may be legally required to hold employers’ liability (EL) insurance.

Employers’ liability covers your legal liability if an employee is injured or becomes ill due to their work.

Examples:

• A worker injures their back lifting materials

• A staff member is injured using equipment

• Long-term exposure leads to a work-related illness

Typical limit:

• £10 million (common market standard)

What to check:

• Who counts as an “employee” under the policy (crucial for subcontractor arrangements)

• Any exclusions around bona fide subcontractors

• Whether you need to display your EL certificate

4) Contract works (contractors all risks / works in progress)

Contract works cover protects the actual work you’re carrying out—often called “works in progress”—against loss or damage caused by insured events.

This is a key part of contractor combined because it protects the value of the job itself.

Examples:

• Fire damages a partially completed extension

• Flooding damages installed materials before handover

• Vandalism damages work on site overnight

What it can include:

• Work on site

• Materials stored on site

• Sometimes materials in transit (often optional)

What to check:

• The maximum contract value limit (per contract)

• The maximum value of work in progress at any one time

• Whether it covers work at multiple sites

• Whether theft is covered and what security conditions apply

5) Tools and equipment cover

Tools cover protects your portable tools (and sometimes small equipment) against theft, loss, or damage.

Examples:

• Tools stolen from a locked van overnight

• Tools damaged in a fire at your premises

• Tools stolen from site storage

What to check:

• Single item limits (important for specialist tools)

• Security requirements (van locks, alarms, trackers, overnight storage rules)

• Whether tools are covered away from your premises and on-site

• Whether hired-in tools are included (often separate)

6) Plant and machinery cover (owned plant)

If you own plant—mini diggers, dumpers, excavators, generators, compressors—plant cover protects it against loss or damage.

Examples:

• A mini digger is stolen from site

• Plant is damaged during loading/unloading

• A generator is damaged by fire or flood

Plant cover can be arranged on:

• A specified basis (listed items)

• An unspecified basis (up to a limit)

What to check:

• Territorial limits (UK only vs wider)

• Whether “hired-in plant” is included (often optional)

• Any conditions around immobilisers, tracking, and storage

7) Stock and materials

Some contractor combined policies include cover for stock and materials, particularly if you hold materials at a yard, workshop, or storage unit.

Examples:

• Copper pipework stolen from your storage

• Materials damaged by water ingress

What to check:

• Where materials are covered (premises only vs also on site)

• Theft conditions and minimum security

8) Business premises cover (buildings and contents)

If you have a workshop, office, yard, or storage unit, contractor combined can include cover for:

• Buildings (if you own them)

• Contents (office equipment, furniture, fixtures)

• Business equipment

Insured events often include fire, flood, storm, escape of water, theft, and vandalism.

What to check:

• Sum insured adequacy (rebuild cost for buildings; replacement cost for contents)

• Any flood exclusions or high excesses

• Whether outbuildings and yards are included

9) Business interruption (loss of income)

Business interruption (BI) helps protect your income if an insured event disrupts your operations.

Examples:

• A fire at your workshop stops you working

• Flooding damages your premises and equipment

BI can help cover:

• Loss of gross profit or revenue

• Increased cost of working (e.g., renting temporary premises)

What to check:

• Indemnity period (commonly 12, 18, or 24 months)

• Basis of settlement (gross profit vs gross revenue)

• Whether it includes denial of access (sometimes optional)

Common optional add-ons (often worth considering)

Contractor combined is flexible. Depending on your trade and risk profile, you may want to add:

Professional indemnity (PI)

If you provide advice, design, specification, or project management, professional indemnity covers claims arising from negligence in your professional services.

Examples:

• A design error leads to costly rework

• Incorrect advice causes a client financial loss

PI is especially relevant for:

• Design & build contractors

• Consulting engineers

• Project managers

• Specialist installers providing technical advice

Contractors’ pollution liability

Some work carries pollution risk (fuel spills, chemical run-off, contamination). Pollution liability can cover clean-up costs and third-party claims.

Hired-in plant

If you hire plant, you may be responsible for loss or damage under the hire agreement. Hired-in plant cover can protect you for:

• Theft

• Accidental damage

• Fire and flood

Goods in transit

If you transport tools, materials, or stock between sites, goods in transit can cover loss or damage while being carried in your vehicles.

Own plant hired out

If you hire your own plant to others, you may need a specific extension for hired-out plant.

Personal accident

Personal accident cover can provide a lump sum or weekly benefit if you (or key staff) are injured and unable to work.

Legal expenses

Commercial legal expenses can help with:

• Contract disputes

• Employment disputes

• Tax investigations (depending on cover)

• Debt recovery

Cyber insurance

Even contractors can be exposed to cyber risks—phishing, invoice fraud, ransomware, and data breaches (especially if you hold client details).

Directors’ and officers’ (D&O)

If you run a limited company, D&O can protect directors against claims relating to management decisions.

Common exclusions and limitations to watch

Policies vary, but these are frequent sticking points:

• Poor workmanship / defective work: Insurance usually covers sudden, accidental damage—not the cost of redoing poor work.

• Wear and tear / gradual deterioration: Not covered.

• Unattended vehicle theft conditions: Many tool theft claims fail if vans aren’t locked, items are visible, or security requirements aren’t met.

• Height and heat restrictions: Roofing, work at height, and hot works may have conditions or exclusions.

• Contract value limits: If your job values exceed the policy limits, you could be underinsured.

• Employee definitions: Misunderstanding labour-only subcontractors can create gaps in employers’ liability.

• Hazardous locations or activities: Work on railways, airports, offshore, or high-risk environments may need specialist cover.

How to choose the right contractor combined policy

Here’s a practical checklist to help you buy the right cover.

1) Be clear on your trade and activities

Insurers rate risk based on what you do day-to-day. Be specific about:

• The types of jobs you take on

• Whether you do any design or specification

• Whether you use heat, welding, or cutting equipment

• Typical working heights

• Whether you work on domestic, commercial, or industrial sites

2) Set realistic limits and sums insured

Underinsurance can reduce claim payouts. Consider:

• Public liability limit required by clients

• Maximum contract value

• Total value of tools and plant at any one time

• Materials stored at premises and on site

3) Check security requirements

If your policy has strict security conditions, make sure they match reality—especially for:

• Vans (overnight storage rules)

• Site storage containers

• Yard security

• Tracking/immobilisers for plant

4) Think about your contracts

Some contracts push liability onto you. Review:

• Plant hire agreements

• Main contractor terms

• “Hold harmless” clauses

If in doubt, legal expenses cover can be a smart add-on.

5) Consider your worst-case scenario

Ask yourself:

• If our workshop burned down tomorrow, how long to recover?

• If our tools were stolen, could we keep trading?

• If a major claim landed, could we afford legal defence?

These questions help you choose BI cover, tool limits, and liability limits.

Why contractors often prefer combined cover

Contractor combined insurance is popular because it can:

• Reduce gaps between separate policies

• Simplify renewals and paperwork

• Offer better value than buying covers individually (depending on risk)

• Make it easier to evidence cover to clients and principal contractors

Quick FAQs

Is contractor combined insurance a legal requirement?

Contractor combined itself isn’t legally required, but employers’ liability usually is if you employ staff. Many clients also require public liability and specific limits.

Does it cover subcontractors?

It depends on whether they are labour-only or bona fide subcontractors and how your policy defines “employee.” Always declare your subcontractor arrangements.

Does it cover tools left in a van overnight?

Sometimes, but often only if strict security conditions are met (locked, alarmed, out of sight, and sometimes stored at your home address or a secure compound). Check your wording.

Does contractor combined cover workmanship?

Generally, it won’t pay to redo defective work. It may cover resulting damage caused by an insured event, depending on the circumstances and policy terms.

Can I include professional indemnity in the same policy?

Often yes, either as an add-on or as a separate but linked policy. This is especially relevant for design & build or advisory work.

Conclusion

A contractor combined insurance policy is designed to protect the realities of contracting work: liability claims, theft of tools and plant, damage to works in progress, and disruption to your income. While the exact inclusions vary by insurer, most policies combine public liability, employers’ liability, contract works, tools, plant, and optional covers like business interruption and professional indemnity.

The key is making sure the policy matches how you actually operate—your trade activities, job sizes, subcontractor setup, and security arrangements. Get those details right, and contractor combined can be one of the most efficient ways to protect your business.

Need a contractor combined quote? Speak to a specialist broker who understands contracting risks, contract works limits, and the cover extensions that matter for your trade.