What insurance do groundworkers need?

As a groundworker, the insurance you may need will depend on the nature of your work, whether you employ staff, the contracts you undertake, and the specific risks your business faces. While some types of insurance may be legally required, such as employers’ liability insurance, others discussed in this article may be commonly requested by clients, principal contractors, local authorities or project managers before work begins. 

Our guide below explains the main types of insurance groundworkers may need to consider and how the different covers can help protect their business. 

Why should groundworkers consider insurance? 

Groundworkers are often responsible for the earliest stages of a construction project, carrying out work that can affect site safety and the stability of future structures. Excavation, plant operation and work near underground utilities can result in accidental damage to cables, pipes or neighbouring property. Accidents may also result in injuries to employees, members of the public or other contractors. The Health and Safety Executive provides guidance on managing excavation risks, including excavation collapse, falling materials, the undermining of nearby structures and contact with underground services. 

While insurance cannot prevent accidents from occurring, it may help protect your business from the financial consequences if something goes wrong. 

What insurance do groundworkers need by law? 

Employers’ liability insurance 

If you employ staff, employers’ liability insurance is generally required by UK law, subject to limited exemptions. This insurance may help protect your business if an employee suffers an injury or illness as a result of their work and brings a claim against you. 

For groundworkers, examples could include: 

Whether labour-only subcontractors are treated as employees for employers’ liability insurance purposes can depend on the nature of the working relationship and the insurer’s requirements. Always seek appropriately qualified advice if you are unsure whether this obligation applies to your business. 

Risks to consider before arranging groundworkers’ insurance 

Insurance requirements can vary significantly depending on the work undertaken by your groundworking business. Before arranging cover, it is worth considering the specific risks associated with your business, as these may affect the types of insurance you need and the information insurers ask for. 

Factors that may influence your insurance requirements include: 

Understanding these risks can help you identify the types of cover your business may need and discuss its requirements accurately with an insurer or broker. 

What insurance do groundworkers need to consider? 

The following types of insurance may be worth considering, depending on how your business operates and the risks it faces: 

Public liability insurance 

Public liability insurance is commonly considered by groundwork businesses. Although it is not typically a legal requirement, clients, developers and principal contractors may expect groundworkers to hold public liability insurance and provide evidence of cover before work begins. 

Public liability insurance may respond if your business is alleged to have caused: 

For example, public liability insurance may provide cover if insured excavation work accidentally damages third-party property or underground services. Cover will depend on the cause of the damage and the applicable policy terms, conditions and exclusions. 

Commercial contracts can sometimes specify minimum public liability limits, making it an important consideration for businesses that bid for larger projects. 

Businesses should check that their activities and excavation depths have been accurately disclosed and fall within the scope of the policy. 

Contract works insurance 

Contract works insurance may help protect eligible construction work, materials and temporary structures against insured damage before practical completion. Depending on the policy, it may help cover: 

This cover may be particularly relevant for groundworkers undertaking larger developments where substantial work is completed before final handover. 

Responsibility for insuring the works may depend on the construction contract and the arrangements between the contractor, employer and other parties. Check the contract and policy documentation to confirm who is responsible for arranging cover, what property is insured and when cover begins and ends. 

Occupational personal accident insurance 

Groundwork can be physically demanding and often relies heavily on the skills and labour of key individuals. For self-employed groundworkers and business owners, a serious injury could lead to a prolonged period away from work and a loss of income. 

Occupational personal accident insurance may pay specified benefits following an injury that leaves you unable to work, subject to the policy’s terms, conditions and benefit limits. This type of cover is often considered by sole traders and company directors who do not benefit from employer sick pay arrangements. Benefits may not replace your full earnings or continue for the entire period you are unable to work. 

Professional indemnity insurance 

While many groundworkers focus on site-based activities, some businesses also provide professional services alongside their practical work, which may introduce additional risks. 

These services could include site assessments, drainage advice, designs or project-planning support. Where professional advice forms part of the service provided, professional indemnity insurance may be worth considering. 

This type of cover is generally designed to respond to claims alleging that professional advice, recommendations or services have caused a client to suffer a financial loss. Whether professional indemnity insurance is appropriate will depend on the nature of your work and any contractual obligations that apply to your business. 

Legal expenses insurance 

Groundwork projects can involve multiple contractors, tight deadlines and significant financial commitments. Disputes may arise over contracts, payment terms, project delays or employment matters, even where work has been completed successfully. 

Legal expenses insurance may help cover certain legal costs associated with covered disputes involving: 

It’s important to note that disputes and legal costs covered will vary by policy and insurance provider. Cover may be subject to requirements such as notifying the insurer promptly, obtaining the insurer’s agreement before incurring costs and the claim having reasonable prospects of success. Check any  policy documentation for the precise scope of cover. 

Tools insurance 

Events covered by the policy, such as theft, loss or damage of essential tools can delay projects and result in unexpected repair or replacement costs. Tools insurance may help cover the cost of repairing or replacing specified equipment following an insured event. 

Plant and machinery insurance 

From excavators and dumpers to compactors and loading equipment, plant and machinery are often essential to carrying out groundwork projects efficiently. As this equipment can be expensive to repair or replace, damage, theft or loss may cause significant costs and delays. 

Plant and machinery insurance may help protect owned equipment against certain risks, subject to the policy wording. This type of cover can be particularly relevant for groundworkers who rely on specialist machinery for excavation, site preparation, drainage installation and foundation work. 

Depending on the policy, cover may be available for: 

Owned plant and hired-in plant 

Groundworkers use both owned and hired-in plant, but the insurance considerations can differ. 

Owned plant refers to machinery that belongs to your business, such as excavators, dumpers or compactors. Insurance may help protect these assets against specified risks, subject to the policy terms and conditions. 

Hired-in plant refers to equipment rented from a hire company. Under many hire agreements, you may be responsible for loss of, or damage to, the equipment while it is in your possession. Depending on your circumstances, separate hired-in plant cover may therefore be required or worth considering. Check the hire agreement carefully to establish your responsibilities and whether any insurance arrangements are already in place. 

Before relying on any cover, review the relevant policy documentation carefully to understand the applicable conditions, limits, security requirements and exclusions. 

Directors’ and officers’ insurance 

Groundwork businesses operating as limited companies may also consider directors’ and officers’ insurance. This insurance is generally designed to cover directors and officers against certain claims made personally against them in connection with decisions taken while managing the business. The suitability and scope of cover will depend on the structure of the business, its responsibilities and the policy selected. 

Frequently asked questions 

Do I need insurance as a groundworker? 

Whether you need insurance as a groundworker will depend on how your business operates, the work you undertake and any contractual requirements you must meet. If you employ staff, employers’ liability insurance is generally required by law, subject to limited exemptions. 

Do groundworkers need employers’ liability insurance? 

Employers’ liability insurance is generally required by law if you employ staff, subject to limited exemptions. Whether individuals working for you are treated as employees for insurance purposes can depend on the working arrangement, so seek appropriately qualified advice if you are unsure. 

Do groundworkers need public liability insurance? 

Public liability insurance is not usually a legal requirement. However, many clients and contractors may require it before allowing work to begin. 

Does public liability insurance cover damage to underground services? 

Public liability insurance may cover certain claims involving accidental damage to third-party underground services, but this will depend on the policy wording, the work disclosed to the insurer and any applicable terms, conditions or exclusions. Check that excavation and work near underground services fall within the scope of your cover. 

Do groundworkers need insurance for hired-in plant? 

If you hire plant or machinery, the hire agreement may make you responsible for loss or damage while the equipment is in your possession. Separate hired-in plant insurance may therefore be required or worth considering, depending on the hire agreement and any existing cover.