Tradesman insurance - builder pays or I pay?

[SamoSamo]

Just seen the breakdown of a quote I have received and there listed is £6,000 in tradesman insurance. Should I be paying for this or is this something that has been shifted on to me? (loft extension and ground floor extension)

I asked for sight of the builder’s own insurance. It was an annual policy the builder has already. I also notified my own buildings insurer. How much? For a domestic conversion:/extension?

The insurance is listed as £6,000. I just find it strange that I'm paying for tradesman insurance.

This is what it says online on the websites I have seen: What is tradesman insurance?

Tradesman insurance is a business insurance policy for professionals in their field that covers several different important aspects, including your equipment, cover for your ongoing works, compensation costs following a legal claim against you and other optional extras depending on the work you do.

To qualify as a tradesman, you must be deemed as a professional in your field of work and be over the age of 16. Generally, tradesman insurance is designed for people working in their own homes, outside, or on their clients' property, so if you own or rent a specific business premises you may need to enquire into full business insurance.

So why am I paying as the client? I'm wondering whether I'm being had a little......

My full works is costing £160k, which is about £30k more than I would have wanted at the top end (this is to first fix, btw), so £5k really counts. Particularly during this period of rising prices.

I've never paid tradesmen insurance. They have it themselves. You do need to do something about your own insurance if the work is over £50k I believe, but never have I paid anyone else's insurance (I have flipped six or seven houses plus done up four of my own).

Sounds like he's being a CF

I employ a lot of tradesmen for my employer. I always check they have insurance, we never pay for it ....and it doesn't cost £6000.

If your builder is acting as principal contractor then, if you’re a domestic client, the duties of the client fall upon him. He will need PLI and ELI and, as he will be appointing sub contractors, he should check that his sub contractors have suitable H&S measures in place - so suitable risk assessments, method statements and insurances.

It's the architect, he did my drawings and has now given me a quote.

The thing is I feel bad not taking it all the way through with him, but at the same time.....

I will have to ask him about it.

This tradesman is having you on; he should be paying his own insurance.

I presume you have seen his previous work, given the size of your project. I'd also check with previous customers if they were billed for the tradesman's insurance.

@Samosamo

It's the architect, he did my drawings and has now given me a quote.

The thing is I feel bad not taking it all the way through with him, but at the same time.....

I will have to ask him about it.

Also I just read this:

arb.org.uk/architect-information/professional-indemnity-insurance/

Your architect will be the principal designer for the project and will take on the client’s role. He will still need PLI and ELI, plus professional indemnity, and will ensure that the contractors have their own insurances in place. It’s not for you to cover contractors insurances.

I suppose the big question is: how does the overall cost compare to other quotes you've had for the same specification of work? Because in the end, whether it's itemised or lumped in with other overheadsthe customer is paying for whatever insurance is required.

That said, the quote for our extension did have insurance itemised and it only cost £250 on a project worth about £95,000.

@Starseeking

This tradesman is having you on; he should be paying his own insurance.

I presume you have seen his previous work, given the size of your project. I'd also check with previous customers if they were billed for the tradesman's insurance.

Thanks for the link

@CasperGutman

I suppose the big question is: how does the overall cost compare to other quotes you've had for the same specification of work? Because in the end, whether it's itemised or lumped in with other overheadsthe customer is paying for whatever insurance is required.

That said, the quote for our extension did have insurance itemised and it only cost £250 on a project worth about £95,000.

I also thought that - I'm probably paying for it in the other quotes, just not so obviously.....

It really is a minefield choosing between builders: those that say they won't charge you anymore than the agreed price, those that say price might change due to costs rising, those who say they can do no VAT (not that we want that), those who will not, those who subcontract, those who will not, those who give a 5 year guaranteed those who give two. It goes on and on. All different prices. My head is spinning. And I'm just trying together this thing done and not end up back on herein few months talking about the nightmare experience I've had.....!

Do you have a JCT contract? That has various options regarding insurance one of which is at the clients cost. CAR (contractors all risk) policies are difficult for lay people to obtain so would be easier for contractor to sort at your cost?

@CasperGutman

I suppose the big question is: how does the overall cost compare to other quotes you've had for the same specification of work? Because in the end, whether it's itemised or lumped in with other overheadsthe customer is paying for whatever insurance is required.

That said, the quote for our extension did have insurance itemised and it only cost £250 on a project worth about £95,000.

I paid £700 for an all risk policy for two weeks of work. But £6k is a lot.

I'm not sure what is meant by tradesman insurance but a contractor may have PL cover but that will expressly exclude damage caused to the actual work they're doing. You need a policy which covers the work you're having done which is known as a CAR policy. It effectively insurers the works up to practical completion.