Insurance for Builders and those in the Construction Industry

The Irish construction sector faces many risks. In 2025 Builders and contractors must consider tailored insurance cover. Like a one size house isn’t a fit for everyone, neither is a one size insurance policy. At Dolmen Insurance, we provide clarity on essential policies. We also highlight important statistics, advise on hire‑plant cover, and quote industry associations. Consequently, you will understand how to protect your business effectively.

The Irish Construction Insurance Landscape

Ireland’s construction industry remains significant to the national economy. Yet workplace and liability claims continue to rise. Between 2019 and 2023, over 22,000 employer liability claims came before the Injuries Resolution Board. Overall, employer liability claims remained 37 % below 2019 levels in 2023.¹ However the total awarded compensation across those years exceeded €120 million.¹ Public liability claims reached nearly 30,000 submissions in that period.¹ Thus risk exposure remains high for all contractors.

Furthermore, public liability claims across all sectors fell 40 % between 2019 and 2023.¹ Yet construction sector exposures remain significant due to complex work environments. Therefore, liability insurance continues to be essential for trades and site managers.

CIF Perspective on Construction Insurance

CIF emphasises that insurers must understand and address the specific needs of the construction market.² For public and employer’s liability cover, €6.5 million and €13 million indemnity is typical.² Also, policies must satisfy requirements of SEAI, RGI, RECI and Local Authorities.² Through this approach, CIF supports its member firms with comprehensive cover suited to construction risks.

As CIF states, their insurer partner “understands the special needs of the construction market and can assist you in providing comprehensive cover.”² This demonstrates why sector‑specific schemes exist. Moreover, trades such as scaffolders, ground works, carpentry, civil engineering and plant hire are included under standard policies.³

Why Builders and Construction Firms Need Specialised Insurance

Construction sites pose multiple hazards. Workers face risks from slips, falls, machinery accidents, and structural collapse. Public liability claims may arise from damage to property or injury to bystanders. Employer’s liability covers injuries to your employees. Without suitable cover, a single claim could threaten your ongoing operations. Therefore professional indemnity, contractor’s all risks, and plant/machinery insurance are also worth serious consideration.

Protection against weather‑related events is also needed. Storms such as Storm Eowyn in early 2025 generated around 27,000 insurance claims.⁴ Commercial damages alone reached €122 million.⁴ Although that storm was external, construction sites suffered direct and indirect losses. Thus construction insurance must include weather perils and business interruption where applicable.

Statistics on Construction-Related Claims in Ireland

Data from the Central Bank of Ireland’s National Claims Information Database (NCID) reveals trends in employer and public liability claims.⁵ The latest 2024 mid‑year liability report demonstrates continued industry risk. Although detailed breakdowns aren’t fully published yet, claims in construction trades remain a significant subset.⁵

Separately, Irish Life and Aviva paid out substantial protection claims for 2023‑2024. While these relate more to life and income protection, they show the scale of claims in Ireland. In 2024, Irish Life paid €379.7 million across 7,804 protection claims.⁶ Over 99 % of death claims were approved.⁶ Aviva paid €121.1 million in protection claims in 2023.⁶ Protection claims are different from liability, but they indicate the broader financial stakes within insurance.

Insurance For Hire Plant and Machinery

Today a prospect called our company, and wanted to discuss our cover options. They recently had a claim for a stolen teleporter denied by their current insurer. Often builders or contractors hire plant or machinery. Equipment such as excavators, cranes, or telehandlers are commonly rented. Insurance for hired plant must be carefully assessed. Dolmen Insurance recommends the following:

1. Always check whether the hirer or the owner carries liability cover.
2. Confirm whether hired plant is included under your own contractor’s all‑risks policy.
3. If not, secure a separate plant hire insurance policy to cover damage, theft, or breakdown.
4. Always request a Certificate of Insurance from the plant provider.
5. Avoid gaps by ensuring public and employer liability coverage extends to hired equipment use.

Transitioning between policies can expose you to risk. So before hiring, clarify responsibilities. Many insurers will offer a hire plant add‑on to your policy. That saves you from taking on unnecessary liability.

Additional Cover Types Contractors Should Consider

• Contractor’s All Risks (CAR) – Covers physical loss or damage to building works in progress.
• Professional Indemnity – Protects design and consultancy errors.
• Design and Build Cover – For contractors involved in design responsibility.⁷
• Tools in Transit, Personal Accident, and Legal Expenses – Optional but helpful.

Risk Management and Insurance Premium Costs

From CIF’s insight, risks in construction require insurer familiarity.² Also, Capital Insurance Markets highlight that liability policies offer up to €13 million employer’s liability and €6.5 million public liability.³ These limits are industry standard for many building firms.

Premiums vary by trade type, revenue, claims history, and site safety protocols.³ Firms with up to 25 m height or 5 m depth limits may qualify for standard pricing.³ By contrast, higher‑risk work (e.g., deep excavation or scaffolding) may trigger higher rates or exclusions.

Insurance Ireland reports that total insurer liabilities stood at €438 billion by end‑2022.⁶ The Irish insurance sector employs 35,000 people and contributes over €2.7 billion to the Irish Exchequer annually.⁶ This scale evidences how critical the insurance sector is in Ireland.

What to do next

Insurance for builders and construction professionals in Ireland demands specific coverage. Liability, all‑risks, plant hire, and indemnity aspects all warrant attention. Statistics show thousands of employer and public liability claims each year. Compensation awards in cumulative periods exceed €120 million.¹ CIF promotes tailored insurance schemes through Arachas.² Therefore strong partnership and industry insight matters.

For plant hire, always confirm who bears risk. If needed, add hire‑plant insurance to your existing policy. With Dolmen Insurance, you gain a partner who understands both cover details and Irish construction context. Moreover, our advisors will explain policy terms in plain language. We help you secure the correct cover for each stage.

Contact Dolmen Insurance for a quote today. Together, you can build with confidence and reduce exposure without sacrificing growth.

What to do next

As accountability pressures grow and legal complexities deepen, the risk to construction companies cannot be understated.  

Talk to our business insurance team today, click here.

Disclaimer: The information provided in this blog post is for general informational purposes only and does not constitute professional advice. While Dolmen Insurance strives to keep the content accurate and up to date, insurance policies and legal regulations may change over time and vary by individual circumstances. Readers should consult a qualified insurance broker or legal professional before making decisions about Construction Insurance or any other insurance products. Dolmen Insurance accepts no liability for any loss or damage arising from reliance on the information contained herein.

References:

¹ Injury claims data from Injuries Resolution Board, 2019–2023 oci.ieinjuries.ie Central Bank of Ireland
 ² CIF Insurance Affinity Scheme details Construction Industry Federation
 ⁴ Storm Eowyn related claims and damages The Times+1The Sun+1
 ⁵ NCID liability claims database and reports my.bline.ie+2Central Bank of Ireland+2injuries.ie+