Insuring a scaffolding business

Scaffolding firms work at height, on busy streets and next to other people's homes. The right insurance lets a firm take on that work with confidence and look after its people. This page explains how the main kinds of cover work in Great Britain and what to check. It gives no quotes and sells no insurance.

Employers' liability, the one the law requires

Employers' liability insurance helps a business pay compensation if an employee is injured or becomes ill because of their work. GOV.UK says you must have it as soon as you become an employer. It must cover you for at least £5 million and come from an authorised insurer.

You must display the certificate where employees can see it, and show it to inspectors when they ask. A business can be fined £2,500 for every day it is not properly insured. You can check that an insurer is authorised on the Financial Conduct Authority (FCA) register.

Who counts as an employee

Some people working on scaffolding may be described as self-employed. The Health and Safety Executive (HSE) explains that the label does not settle it. The answer depends on the real working relationship and how much control you have over the work.

HSE adds that someone who is self-employed for tax purposes may still count as your employee for this insurance. Working this out early helps make sure everyone on site is covered.

Public liability and council licences

Public liability insurance covers claims from members of the public or other businesses. It does not cover claims by your own employees. HSE describes it as generally voluntary.

In practice, scaffolding on a road or pavement needs a licence from the council, and councils can ask to see this cover. Surrey County Council, for example, asks for public liability insurance of at least £10 million with each scaffolding licence application. Checking each council's requirement early helps the work start on time.

Telling the insurer about the business

For business insurance, the Insurance Act 2015 sets a "duty of fair presentation". Before the policy starts, the business must tell the insurer every material circumstance it knows or ought to know. At the least, it must say enough to prompt the insurer to ask more questions.

Giving a clear, full picture of the work you do helps the policy fit the business.

Keeping good records

There has been no legal duty to keep old employers' liability certificates since 1 October 2008. HSE still strongly advises keeping a full record of past cover. Some illnesses can appear decades after the work that caused them, and a former employee may claim for that time.

If a claim goes wrong

Start by complaining to the insurer. If you are not happy with its final response, the Financial Ombudsman Service may be able to help. It says about 99% of small businesses and micro-enterprises in the UK can bring a complaint to it. A micro-enterprise employs fewer than 10 people and has a turnover or balance sheet of no more than €2 million.

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