Insurance Requirements for Clients & Developers When Hiring Contractors

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A practical guide for developers, project owners and clients on the essential insurance coverage required from contractors before work begins - ensuring legal compliance, risk protection and contract safety.

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Trusted by contractors, developers and UK insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

KEY CONTRACTOR INSURANCE CHECKS FOR CLIENTS & DEVELOPERS

  • PUBLIC LIABILITY

  • EMPLOYERS’ LIABILITY

  • CONTRACT WORKS & PLANT

  • PROFESSIONAL INDEMNITY

Ensure Your Contractors Meet Legal & Contractual Insurance Requirements

Before any construction work begins, clients and developers must verify that contractors hold the correct insurance - protecting against liability claims, property damage, design risks and project delays.

What Insurance Should Contractors Provide?

Minimum essential insurance checks for any client or developer hiring construction firms.


  • Public Liability Insurance (core requirement)
  • Employers’ Liability (mandatory by law)
  • Contract Works / Contractors’ All Risks
  • Hired-in Plant & Machinery
  • Tools & Equipment Cover

  • Professional Indemnity (for design/specification work)
  • Motor/Fleet Insurance for site vehicles
  • Management Liability / Directors’ & Officers’
  • Environmental & pollution risk cover
  • Subcontractor insurance verification

Insurance Requirements in Contracts & Tenders

Most construction contracts outline minimum insurance requirements that must be met before work begins.


  • Minimum Public Liability limit (often £5m–£10m)
  • Professional Indemnity to contract-specified levels
  • Evidence of Employers’ Liability compliance
  • Contract Works & Plant cover for project value
  • Joint-names cover for clients & contractors

  • Insurance wording aligned with JCT/NEC contracts
  • Subcontractor compliance checks
  • Specific conditions for high-risk works (roofing, demolition)
  • Waivers of subrogation where required
  • Proof of insurance before project mobilisation

Why Clients & Developers Must Verify Contractor Insurance

Failing to check insurance can expose developers to significant legal, financial and reputational risk.


  • Protection against claims from accidents or property damage
  • Compliance with legal and regulatory standards
  • Ensures alignment with contract and tender requirements
  • Reduces project delays caused by uninsured risks
  • Protects developer assets and finances

  • Stronger risk management for the project
  • Reduces liability exposure for clients
  • Improves contractor accountability
  • Required by lenders, funders & insurers
  • Provides long-term protection even after project completion

FREQUENTLY ASKED QUESTIONS

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What insurance should every contractor have?

At minimum: Public Liability, Employers’ Liability, and Contract Works cover. Design or specification work requires Professional Indemnity.

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Do developers need to be listed on the contractor’s policy?

Often yes. Many JCT/NEC contracts require joint-names insurance, especially for Contract Works or certain liability sections.

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What limits of insurance should clients request?

Public Liability typically £5m–£10m, Employers’ Liability £10m, Professional Indemnity based on project value, and Contract Works equal to rebuild cost.

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Should subcontractors be checked separately?

Yes. Clients should verify that all subcontractors carry valid and adequate insurance matching project risks.

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Can insurance wording be negotiated in contracts?

Yes. Limits, endorsements, waivers and joint-names requirements can all be negotiated before contract execution.

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