Construction and Engineering Insurance for contractors and engineering firms
Cover for contractors, civil engineers, electrical firms and engineering companies with site teams, plant, yards and contracts to meet. See what each policy protects and how to put a programme together that satisfies clients and main contractors.
- Works, plant, liability and staff covered
- Limits matched to contract requirements
- Specialist construction brokers
Reviewed October 2026 by the MyBusinessComparison.com editorial team
What is construction and engineering insurance?
Construction and engineering insurance is the set of policies contractors and engineering firms use to protect the works they build, the plant and tools they use, the people they employ and the claims that arise from their work. Most programmes combine contract works, liability and plant cover.
What you need depends on the role you play on a project. A main contractor may have to insure the whole works under the building contract, while a specialist subcontractor may only need its own liability, plant and materials. Design responsibility, the value of contracts and the type of work all change the cover required.
Construction cover at a glance
- Core covers
- Contract works, employers' and public liability, plant and tools
- Compulsory part
- Employers' liability, with labour only subcontractors usually treated as employees
- Set by contracts
- Who insures the works, liability limits and any joint names cover
- Rated on
- Type of work, turnover, wage roll, contract values and claims
- Common extras
- Professional indemnity for design and environmental liability
- Usually arranged as
- An annual contractors' policy covering all contracts in the year
Which construction and engineering covers are there?
Most firms combine several of these policies. The cards below show what each one is for, so you can see where your business fits.
Contractors' all risks
Damage to the works in progress, materials on site and temporary buildings until handover, often with own and hired plant added.
Read more about contractors' all risks insurance
Construction and tradesman
Liability, tools and contract works cover for building firms and trade contractors working on residential and commercial projects.
Read more about construction and tradesman insurance
Construction companies
A combined programme for main contractors and larger subcontractors: liability, contract works, plant, offices and yards.
Read more about construction company insurance
Civil engineering
Groundworks, roads, drainage, utilities and infrastructure, with the higher liability limits and underground services cover these contracts need.
Read more about civil engineering insurance
Engineering companies
Workshops, fabrication, installation and maintenance work, with products liability for what you make and cover for work at clients' sites.
Read more about engineering company insurance
Electrical contractors
Liability for installations before and after handover, tools and test equipment, and contract works for electrical and building services firms.
Read more about electrical contractors insurance
Plant and machinery
Owned and hired in plant against damage and theft on site and in transit, with continuing hire charges if hired plant is lost.
Read more about plant and machinery insurance
Covers that complete a construction programme
- Professional indemnity: design and build contracts, specification and any design you take on
- Environmental liability: contaminated land, spills into watercourses and clean up costs
- Employers' liability: site teams, apprentices and labour only subcontractors
- Commercial vehicle insurance: vans and trucks that carry crews and materials between sites
- Engineering inspection: examination of cranes, hoists and lifting gear
Who buys construction and engineering insurance?
Firms from main contractors to specialist trades. Each has a different mix of covers, and these are the ones we see most often.
A trade firm rather than a contractor? Specialist trades have their own guides under trades insurance, and sector packages sit under insurance by industry.
- Main contractors: responsible for the whole works under most building contracts, with high liability limits
- Specialist subcontractors: liability, own plant and materials, often working under the main contractor's works policy
- Civil engineering contractors: roads, drainage, earthworks and infrastructure for public and private clients
- Groundworkers: excavation, foundations and drainage, with underground services damage a common claim
- Electrical and M and E contractors: installations, testing and long term maintenance contracts
- Engineering and fabrication firms: workshops making steelwork, components and machinery, often installing on site
- Manufacturers with installation teams: products liability for what they make and public liability for fitting it
- Developers: site ownership and works cover from groundworks through to completion
- Plant hire and plant owning firms: owned plant hired out, and plant hired in under hire agreements
- Building firms: extensions, refurbishments and new build for homeowners and commercial clients
- Shop fitters and interior contractors: fit out work in occupied buildings where damage to the client's property is a key risk
- Renewable energy installers: solar, battery and heat pump installations at height and on roofs
- Builders' merchants: yards, stock and delivery vehicles serving the trade
How much does construction insurance cost?
Construction premiums reflect the work you do and the contracts you sign more than the size of your office. These factors carry most weight.
Type of work
Height, depth, heat, demolition, piling and work near water or railways weigh heavily. Insurers usually rate on the riskiest activity.
Turnover and wage roll
Liability is rated on these figures, including payments to labour only subcontractors, and is often adjusted after the policy year.
Contract values
The largest single contract and annual contract turnover set the contract works premium and its limits.
Plant values
Owned and hired in plant values, how plant is secured overnight and whether it carries trackers all count.
Subcontractor control
Insurers expect checks that bona fide subcontractors hold their own cover, and contract terms that pass risk back.
Claims and safety record
Accident history, site safety systems, training and accreditations help to evidence a well run firm.
Where construction policies leave gaps
These are the gaps that most often surface on construction claims and in contract reviews.
- Faulty design, workmanship or materials themselves, as most works policies pay only for resulting damage
- Design responsibility, which needs professional indemnity insurance
- Damage to existing structures under alteration, unless the works policy or contract specifically includes it
- Bona fide subcontractors' own liability, which they are expected to insure themselves
- Gradual pollution and contaminated land, which call for environmental liability cover
- Plant left unsecured overnight or without required immobilisers and trackers
- Liquidated damages and contract penalties for late completion
- Vehicles on the road, which belong under commercial vehicle or fleet cover
Contract works cover or public liability: which one pays?
Both respond to damage on site, which is why they are confused. The difference is whose property is damaged.
| Feature | Contractors' all risks | Public liability |
|---|---|---|
| What it protects | The works you are building, and materials on site | Third parties injured or whose property is damaged |
| Typical claim | A fire destroys a part built extension | A falling tool damages a neighbour's car |
| Who usually requires it | The building contract, often the main contractor | Clients and main contractors, at a stated limit |
| When cover ends | At handover or practical completion | Covers incidents in the policy period, including those caused by completed work |
| How it is rated | Contract values and type of works | Turnover, wage roll and type of work |
How to choose construction and engineering cover
Your contracts set most of the requirements. Start there and fill the gaps.
Read the insurance clauses
Check who insures the works, the liability limits required and whether joint names or waivers are needed.
Define your role
Main contractor, subcontractor, designer or installer: each changes what you must insure.
List plant, tools and vehicles
Owned and hired in plant, tools in vans and on site, and the vehicles that move them.
Gather your figures
Turnover, wage roll, labour only subcontractor payments, the largest contract and annual contract values.
Compare cover against contracts
Check that limits, excesses, existing structures cover and design exclusions match what you have signed.
Want a broker to read the contract terms?
Tell us about your contracts and a specialist broker will compare construction cover for you.
Compare quotesChoosing construction insurance: FAQs
Which construction insurance does a contracting firm need?
Most need employers' and public liability, contract works cover where the contract requires it, and cover for plant and tools. Firms with design responsibility add professional indemnity, and those working on contaminated land or near watercourses add environmental cover.
Do subcontractors need their own contractors' all risks cover?
Not always. Many work under the main contractor's works policy, which may cover their work but not their own plant or tools. Check the contract: it should say who insures the works and whether subcontractors are included.
What is the difference between construction company and construction and tradesman insurance?
Construction company insurance is built for main contractors and larger subcontractors with significant contract values, yards and plant. Construction and tradesman insurance suits trade firms whose main needs are liability, tools and smaller contract works. Many growing firms move from one to the other.
Do I need professional indemnity as a contractor?
Usually, yes, if you take on any design, specify materials or work under design and build contracts. Liability and works policies usually exclude design errors, so without professional indemnity a design fault could leave the firm uninsured.
Is hired in plant covered by my contractors' policy?
Only if hired in plant has been added. Hire agreements often make the hirer responsible for loss or damage and continuing hire charges, so a plant policy or plant section is usually needed.
Are labour only subcontractors covered by my employers' liability?
In most cases insurers treat labour only subcontractors as employees, so they should be declared and included. Bona fide subcontractors who supply their own materials and insurance are normally expected to hold their own cover.
How much does construction insurance cost?
It depends on the type of work, turnover, wage roll, contract values, plant values and claims record. Work at height, demolition and deep excavation push premiums up, while strong safety and subcontractor controls help.
How do I get a construction insurance quote?
Pick the cover you need from this hub, or send a general enquiry, and a broker who specialises in construction risks will arrange a call. Have details of your work, turnover, wage roll, largest contract, plant values and claims history ready, and any contract insurance clauses you need to meet.
Ready to compare construction cover?
Works, plant, liability and design cover, arranged by a broker who reads contracts as well as policies.