5 Common Mistakes When Seeking Insurance Policies For Builders

In Ireland’s construction sector, builders face a unique blend of legal, operational, and reputational risks. With so much happening on-site, from managing subcontractors and hitting deadlines to navigating evolving safety regulations, insurance policies for builders can sometimes feel like just another administrative box to tick.

But a passive approach to insurance can leave you dangerously exposed. Overlooking key details may result in underinsurance, rejected claims, or even a total lack of cover when you need it most.

In this article, we break down five of the most common mistakes builders make when arranging their insurance and how to avoid them by working with a construction-savvy broker.

 

5 common construction insurance mistakes

 

1. Choosing a broker without relevant industry experience

Construction is one of the most complex and high-risk sectors in Ireland. If your broker doesn’t understand your day-to-day risks, they’re unlikely to ask the right questions or ensure your cover aligns with safety legislation, HSA regulations, or contractual obligations (especially on public or government contracts).

Generic business cover may leave serious gaps or impose exclusions you weren’t even aware of.

How to avoid this mistake

Partner with a broker who specialises in construction insurance and understands the nuances of site work, subcontractor relationships, plant hire, and project-based risks.

 

2. Securing an inadequate level of cover

It’s tempting to opt for the lowest premium, but if a claim arises, low-limit cover may leave you significantly out of pocket.

Example: A subcontractor suffers a serious injury on-site, and your public liability cover is capped below the compensation awarded. You may be personally liable for the difference, a financial hit that could jeopardise your business.

How to avoid this mistake

Ensure your broker assesses realistic cover limits, based on contract value, site hazards, workforce size, and prior claims history. Tailored policies don’t just look better on paper, they hold up under pressure.

 

 

3. Ignoring environmental liability

A common misunderstanding is that standard public liability covers environmental damage. In Ireland, this is frequently excluded or limited, especially under the Environmental Liability Directive (ELD).

If you’re working near water, protected habitats, or brownfield sites, you could be liable for accidental fuel spills, run-off, or contamination and face heavy clean-up costs or fines.

How to avoid this mistake

Work with your broker to:

• Assess environmental risks on each project.
• Review contract clauses and tender requirements.
• Ensure your policy reflects current ELD regulations and includes specific environmental liability protection.

Tip: Environmental risk is rising in public tenders and government contracts. Don’t let this clause go unnoticed.

 

4. Omitting certain activities from your policy

Builders sometimes leave out “minor” tasks like occasional demolition, plant hire, or groundwork from their declared activities, assuming these are covered under general descriptions.

Unfortunately, non-disclosure is one of the main reasons insurers decline claims in Ireland.

How to avoid this mistake

Be fully transparent. Declare every activity, no matter how routine or rare, to your broker. A specialist will know what to probe for and help ensure your policy is aligned with your actual operations.

 

5. Renewing existing policies without review

Many businesses auto-renew policies year after year without reviewing them. But if your team has grown, your equipment has changed, or your turnover has increased, your old policy may no longer reflect your risk profile. This could mean underinsurance or policy terms that no longer apply.

How to avoid this mistake

Schedule a full review with your broker at least one month before renewal. That includes revisiting sums insured, turnover projections, activities performed, and contractual exposures.

 

Don’t assume; ask an expert

It’s worth noting: Not all covers discussed above are legally required in Ireland, such as Employer’s Liability, unless you hire employees, but they may still be contractually required or essential to protect your business.

If you’re ever unsure whether a cover is mandatory, advisable, or negotiable under your contracts, speak to a broker who understands the Irish construction insurance landscape.

 

 

ERM is your provider of robust insurance policies for builders

At ERM Financial Services, we’re not just insurance brokers, we’re specialists in supporting Irish builders and contractors with tailored, project-ready cover. We:

• Understand the complexities of public contracts, PSCS obligations, CIF codes, and site-specific risks.
• Liaise directly with insurers to streamline claims and underwriting.
• Provide practical advice that aligns with industry norms and your day-to-day operations.

 

Contact us today to discuss insurance policies for builders

Whether you’re pricing a one-off house build or managing multiple commercial sites, we can help ensure you have robust insurance cover that fits your work, not just a policy off the shelf.

Get in touch with us today to arrange a tailored insurance review; no jargon, no gaps, just straight-talking advice that protects your business.