How to Check a Builder Is Properly Insured Before You Hire

Insurance is the least glamorous part of hiring a builder and one of the most important. If a builder damages your property, injures a neighbour, or has an accident on your job, the question of who pays can turn a straightforward project into a financial nightmare. Proper insurance is what stands between you and that outcome. Checking it takes a few minutes, and it is one of the clearest ways to separate a professional operation from a chancer. Most homeowners never ask to see a certificate, which is exactly why doing so puts you ahead.

We run DDC Scaffolding and build Complys, so insurance is part of our daily working life. This guide explains the cover a builder should carry, how to read and verify a certificate, the difference between the builder's insurance and your own, how neighbours and warranties fit in, and the simple questions that reveal whether someone takes this seriously. None of it requires any technical knowledge, just a willingness to ask and to check the answers.

The insurance a builder should carry

The most important cover for you as a homeowner is public liability insurance. This protects against injury to other people or damage to property caused by the builder's work. If a stack of materials falls on a neighbour's car, or a burst pipe floods the flat below, or a passer by is hurt by falling debris, public liability is what pays the claim. Without it, you could find yourself dragged into a dispute over who is responsible, on your own property, with your own money at risk. For most home projects you want to see cover of at least one million pounds, and often two million or more for larger work or anything near a public area or a neighbour's property.

If the builder employs anyone, including labourers or apprentices, they are legally required to hold employers liability insurance, usually with cover of at least five million pounds. This protects their workers if they are injured on the job. A builder who employs people and has no employers liability insurance is breaking the law, and that alone tells you a great deal about how they run their business. Do not assume a small firm is exempt, because the requirement applies to almost every business that employs staff, even part time or casual workers.

For larger or more complex projects, contractors all risk insurance is worth asking about. This covers the works themselves, along with materials and plant on site, against events like fire, theft or storm damage while the project is under way. It matters because a half built extension is vulnerable in ways a finished house is not, and if a storm flattens the new walls or thieves take the copper and tools overnight, this is the cover that pays to put it right. Finally, professional indemnity insurance matters when a builder is also giving design or advice, such as a design and build contractor, because it covers claims arising from that advice being wrong rather than from physical damage.

How to read a certificate properly

Asking for insurance is easy. Actually checking it is what counts, and it is not hard. Start by asking for a copy of the certificate or the policy schedule rather than a verbal assurance. A genuine document will name the insurer, the policyholder, the type of cover, the level of cover, the policy number, and crucially the policy dates. Check that the policy is current and not expired, and check that the policyholder's name matches the business or person you are dealing with. A certificate in a different name, perhaps a related company or an individual rather than the trading name on the quote, is a red flag worth questioning directly.

Look at the level of cover and sensibly match it to your job. A one million pound public liability policy may be fine for a small internal job but light for a major extension next to a neighbour's property, where a single incident could cause damage well beyond that figure. Look too at the schedule for the type of work the policy covers and for any exclusions or conditions. Some policies exclude particular activities such as work at height above a certain level, hot works like welding or torch on roofing, or work involving asbestos, and you want to be sure your job is not sitting in an exclusion. Conditions might require, for example, that a fire extinguisher is kept on site during hot works, and a claim can be refused if such a condition was ignored.

Do not be put off by the jargon. You are not trying to become an insurance expert. You are checking a handful of simple things. Is it real, is it current, is it in the right name, is the cover enough for my job, and does it cover the kind of work I need doing. If the answer to all of those is yes, you have done more than most homeowners ever do.

Verify the certificate with the insurer

If you want certainty, you can verify a certificate directly with the insurer or broker named on it. A quick call or email quoting the policy number confirms whether the policy is real, active and covers the work in question. This step matters because certificates can be forged, altered or simply lapsed since they were issued, and a document that looks perfect can still be worthless if the premium was never paid or the policy was cancelled. Reputable builders will not mind this at all, because they have nothing to hide and are often asked to prove their cover on commercial jobs anyway. Someone who becomes evasive or annoyed when you mention verifying their cover is telling you something important, and it is worth listening.

Your insurance and the builder's insurance are not the same

It is easy to assume your own home insurance will cover anything that goes wrong during the works, but that is often not the case, and this is one of the most misunderstood parts of a building project. Many buildings insurance policies restrict or exclude cover while significant works are under way, and some require you to notify the insurer before the project starts. If you do not tell them and something happens, a claim can be refused. So before work begins, call your buildings insurer, tell them what is planned, and ask how it affects your cover. They may adjust the policy, ask for certain conditions, or confirm you are fine, but you want that answer in advance rather than after a disaster.

For larger projects, the contract itself will often say who is responsible for insuring the works while they are in progress, and standard building contracts have specific clauses covering this. On a big job it is worth being clear about whether you or the builder carries the risk for the existing structure and the new work during construction, because a gap there can leave a serious loss uninsured. The builder's public liability covers damage they negligently cause, but it is not a substitute for proper insurance of the works themselves on a substantial build.

Neighbours, boundaries and party walls

Work close to a boundary brings your neighbours into the picture, and their property is exactly the kind of third party damage that public liability is meant to cover. If your project involves excavating near a shared boundary, building on the line, or working on a shared wall, you may also have duties under party wall legislation, which is separate from insurance but closely related, because it sets out how disputes over damage are handled. Making sure your builder has solid public liability cover is the financial backstop if their work damages a neighbour's home, and following the correct party wall process is the legal framework around it. Both are worth getting right before the first brick is touched, because a soured relationship with a neighbour over building damage can be as costly and stressful as any other part of a project.

Insurance is not the same as a guarantee or warranty

People often confuse insurance with a workmanship guarantee, but they do different jobs. Insurance covers accidents, damage and injury during the work. A workmanship guarantee is the builder's promise to put right defects in their own work for a period after completion, and it is only ever as good as the builder still being in business to honour it. For larger projects, particularly new builds and major structural work, a structural warranty or latent defects policy provides longer term cover for serious problems that emerge years later, and it does not depend on the original builder still trading. Some trade schemes also offer an insurance backed guarantee, which means a third party insurer stands behind the builder's guarantee if the builder ceases trading. When a builder mentions a guarantee, ask whether it is insurance backed, because an ordinary guarantee from a firm that later closes down is worth very little.

Certification for gas, electrics and other notifiable work

Some work carries its own certification requirements that sit alongside insurance, and a genuine tradesperson will know them. Gas work must be carried out by an engineer on the Gas Safe Register, and you can and should check their registration. Much electrical work in the home must be done or certified by someone registered with a competent person scheme such as NICEIC or NAPIT, or notified to building control, and you should receive a certificate on completion. Notifiable building work more generally needs building control sign off, whether through a registered competent person or the local authority. These certificates are not just paperwork. They are proof the work meets legal standards, and you will want them if you ever sell the home. A builder who cannot explain how your notifiable work will be certified is one to avoid.

How much cover is enough for your job

There is no single right number, but a sense of scale helps. For a small internal job such as a bathroom refit or some plastering, public liability cover of one million pounds is usually adequate, because the realistic worst case damage is limited. For a larger job, a loft conversion or a rear extension, look for at least two million pounds, and for anything involving significant structural work, deep excavation, or a site close to neighbouring buildings or a busy street, cover of five million pounds or more is not excessive. The question to ask yourself is simple. If the very worst happened on this job, how much damage could realistically be caused, and does the cover comfortably exceed that figure. If the policy limit looks small next to the potential harm, that is a conversation to have before work starts, not after.

The questions to ask before you commit

A short conversation reveals a lot. Ask whether they hold public liability insurance and for how much, and ask to see the certificate. Ask whether they employ anyone and, if so, whether they carry employers liability cover. Ask whether their policy covers the specific type of work your job involves, especially if it includes anything at height, structural, or involving heat, water or asbestos. Ask who their insurer is and whether you may verify the policy. Ask what happens to insurance cover for any subcontractors they bring in, because a builder's own policy may not extend to independent trades working alongside them, and a gap there can leave you exposed. And for notifiable work, ask how it will be certified and by whom.

The answers matter, but so does the manner. A professional builder answers these questions easily and without irritation, because they field them regularly and see them as normal. Defensiveness, vagueness or an attempt to change the subject is itself an answer, and often the clearest one you will get.

Why this protects you specifically

It is worth being clear about why this is your problem and not just the builder's. If an uninsured builder causes damage or injury on your property and cannot or will not pay, the injured party may look to you as the property owner. You could face a claim you never expected, for an accident you did not cause, simply because you hired someone without cover. If a worker with no employers liability behind them is hurt on your job, the situation can become both distressing and expensive. Checking insurance is not about protecting the builder. It is about protecting yourself, your finances and your peace of mind.

What to do if a builder cannot show cover

If a builder cannot or will not show you a valid insurance certificate, the safest course is not to hire them, however good they seem and however keen you are to get started. There is no good reason for a genuine, established builder to be unable to produce proof of cover, since they need it for their own protection as much as yours. Occasionally a sole trader on very small jobs may be underinsured, and you then have a clear choice to make with your eyes open rather than in ignorance. If you decide to proceed with someone whose cover is limited, keep the job small, keep your payments tightly matched to completed work, and understand that you are carrying more risk yourself. In most cases, though, an inability to show insurance is simply a reason to choose someone else, and with a verified directory to hand there is no need to take the gamble.

How Complys takes the hardest check off your plate

Verifying insurance is the single most valuable check you can make, and it is also the one homeowners most often skip, because it feels awkward and technical. We built Complys to remove that friction. Every trade listed in the Complys directory has uploaded their insurance and safety documents, and that paperwork is verified, so when you find a builder there the hardest check has already been done. You can still ask to see the certificate yourself, and a good builder will happily share it, but you are no longer starting from zero or relying on a stranger's word.

You can request quotes from several verified trades for free, compare them properly, and when you are ready to start, protect the money side with Project Guard, which releases payment stage by stage as checked work is completed. Read more on the homeowner page, and if you want the full picture on hiring safely, our guides on how to avoid rogue builders and how to pay a builder safely pull the checks and habits together.

The bottom line

Before you hire, confirm the builder holds public liability insurance at a level that suits your job, holds employers liability cover if they employ anyone, and has a policy that covers the actual work you need done. Ask for the certificate, check the dates, the name and the exclusions, and verify it with the insurer if you want certainty. Tell your own buildings insurer about the project, understand how guarantees and warranties differ from insurance, and make sure notifiable work will be properly certified. It takes a little time, and it protects you from being left holding a claim that was never yours to pay.