Builder's liability insurance

Building a house always involves financial risks. Even simply being on the construction site can be dangerous. The builder is liable for personal, property, and financial damages that occur during construction.

For example, if a visitor trips over materials on your property and is injured, this can lead to significant financial consequences for you as the builder. Builder’s liability insurance protects against such risks.

It provides coverage for liability claims arising from failure to meet safety obligations (e.g., inadequate signage, poor lighting, improper storage of building materials, insufficient protection of pits, etc.) during construction projects — both for new builds and renovations. It is the builder’s responsibility to secure the construction site to prevent injuries. However, it is possible and common for the builder to delegate these safety obligations to contractors or site managers. The builder, however, remains responsible for supervising the delegated duties.

Most private liability insurance policies include a limited builder’s liability coverage (usually up to around €100,000). For full protection, it is advisable to take out a separate builder’s liability insurance policy.