The short version
- Public liability, employers' liability and contract works are the core.
- Labour-only workers may count as employees.
- CDM duties apply on every project.
A small building firm carries more risk than its size suggests. One job can involve a neighbour's wall, a hired digger, three subcontractors and an open trench.
Your legal starting point
Contractors on all projects must plan, manage and monitor their work under CDM 2015. They must check skills, give site induction and provide supervision and welfare.1 Employers' liability is compulsory if you employ anyone, with a minimum of £5 million.2
The cover most builders look at
- Public liability, for injury or damage to others.
- Employers' liability, for staff and some subcontractors.
- Contract works, for the job in progress.
- Plant and hired-in plant.
- Tools and site huts.
Where builders get caught
The usual trap is labour. A lad paid by the day, using your tools, under your direction, can count as your employee even if he invoices you. HSE looks at the real relationship.2 Use our status check on everyone on site.
The second trap is hired plant. Ask who insures it under the hire agreement. Often the answer is you.
Sources
- CDM 2015: contractors, Health and Safety Executive. Accessed 11 November 2026.
- Employers' Liability (Compulsory Insurance) Act 1969: a brief guide for employers, Health and Safety Executive. Accessed 11 November 2026.
- Workplace fatal injuries in Great Britain, Health and Safety Executive. Accessed 11 November 2026.
General information only. This is not legal, insurance or financial advice. Your own policy wording decides what is covered.