Securely safeguard your construction project
Comprehensive protection for builders: the builder's liability insurance from nextsure safeguards your construction project against unforeseen damages and liability claims. Find out more now!
Protection against third-party damage
Coverage of High Risks
Often legally required
What is a builder's liability insurance and why is it indispensable?
Definition and Purpose of Builders' Liability Insurance
Legal Liability Basis for Builders
Financial Risks Without Insurance Coverage
Optimal Protection for Your Construction Project
The key risks for builders: A comprehensive overview
As a building owner, you bear immense responsibility, as construction sites contain numerous hazards. Without adequate insurance coverage, unforeseen events can quickly lead to financial burdens. Core risks include personal injury: if a passer-by trips over unsecured material or a child playing on the site is injured, you are liable. Property damage is also common; for example, if construction work damages a neighbouring property or a falling crane hits a vehicle. Pure financial losses, which arise as a direct result of personal injury or property damage (e.g., loss of income of the injured party), can also be incurred. Environmental damage, such as from leaking operational materials, should not be underestimated. The construction liability insurance from nextsure is your essential shield against these diverse risks, protecting you against legitimate claims from third parties while defending you against unfounded demands.
Protection for Your Project
Our services in detail
Personal injuries
Coverage for injuries to third parties on your construction site.
Property damage
Protection against damage to third-party property.
Financial Losses
Protection in the event of pure financial losses to third parties.
Construction sums
Flexible adjustment of the insurance amount to your project.
Own contribution
Co-insurance for own contributions under clear conditions.
Post-liability
Protection even after construction for defined periods.
Environmental damage
Coverage for certain environmental damages caused by your construction project.
Construction Protection
Fulfilment of traffic safety obligations secured.
Digital Process
Simple online conclusion and digital contract management.
Tailored insurance coverage for builders.
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What specific damages does the builder's liability insurance cover?
The construction liability insurance is designed to protect you from the financial consequences of damages to third parties related to your construction project for which you, as the builder, are held liable. The insurance coverage typically includes personal injury, such as the costs of medical treatment, compensation for pain and suffering, or even pension payments, for example, if a visitor is injured on your construction site. Property damage is also covered, such as the repair costs or replacement value for damaged third-party property – for example, if parts of the facade fall onto a neighbouring car. Gradual damages, which develop slowly, such as moisture damage to a neighbouring building caused by seepage from your construction site, can also be covered. An important aspect is the insurer's examination of the liability issue: legitimate claims are settled, while unjustified demands are defended against at the insurer's expense, if necessary, through legal action. However, please note that damage to your own building or damage caused intentionally is generally not covered; this is what construction all-risk insurance is for.
Obligatory or optional? When is builder's liability insurance legally required?
For private builders in Germany, there is no general legal obligation to take out a builder's liability insurance. Nevertheless, it is practically indispensable for several reasons. Firstly, most banks and financial institutions require proof of such insurance as a condition for granting a construction loan. Without this proof, financing your building project is often more difficult or even impossible. Secondly, as a builder, you are liable under § 823 BGB for all damages caused to third parties by your construction project – without limitation, with your personal assets. This statutory liability applies regardless of whether an insurance obligation exists or not. Your duty to ensure traffic safety obliges you to secure the construction site so that no one comes to harm. Violations can be costly. Thus, although the builder's liability insurance is not an explicit legal obligation for everyone, it is an absolute necessity to protect your financial existence and meet the requirements set by banks.
How to Determine the Right Insurance Amount for Your Builder's Liability
The choice of the correct insurance sum (also known as the coverage amount) is a crucial factor for your comprehensive protection. It should be sufficiently high to fully cover the costs, even in the event of a major loss, particularly in cases of personal injury that may involve lifelong pension claims. Common minimum coverage amounts range from 3 to 5 million euros overall for personal and property damage. However, experts and consumer advocates often recommend higher amounts, ideally 10, 15 million euros or more, as the additional premium is usually small, but the extra protection is significant. When deciding, you should consider the type and extent of your construction project, the location (urban with many passers-by vs. rural), the number of direct neighbours, and the scope of planned personal contributions. An insurance sum set too low may mean you have to pay the difference out of your own pocket in the event of a claim. The experts at nextsure are happy to advise you on determining the optimal and needs-based insurance sum for your specific construction project.
Differences and Distinctions: Builder's Liability Insurance vs. Construction All Risk Insurance
Both the Bauherrenhaftpflichtversicherung (BHV) and the Bauleistungsversicherung (BLV), often referred to as construction insurance, are of great importance to builders, covering different risk areas. The Bauherrenhaftpflichtversicherung protects you from third-party financial claims. This means it comes into play if your construction project causes injury to people, damage to property, or financial losses for which you, as the builder, are liable. Examples include an injured passerby or damage to a neighbouring house. In contrast, the Bauleistungsversicherung secures the construction itself as well as the associated components and building materials against unforeseen damages. These include damage due to exceptional weather conditions like storms or floods, vandalism, theft of parts already fixed in place, or even undiscovered construction and material defects. In short: the BHV covers damages you cause to others, while the BLV covers damages to your own construction project. Both insurances complement each other ideally and are indispensable for comprehensive protection.
Digital Experts
Niche insurance online
Tailored Protection
Custom Solutions
Transparent tariffs
Clear terms
Personal contributions to building projects: What you need to consider regarding homeowner liability insurance
DIY contributions, meaning work that you as the builder carry out yourself or with the help of friends and relatives for free, can save construction costs. However, they also carry specific risks and require special attention regarding insurance coverage. Generally, DIY contributions can be insured under the builders' liability insurance. It is crucial to report these to the insurer in advance and specify the scope and value of the planned DIY contributions, as this can affect the premium and the insurer needs to assess the increased risk. Even with DIY contributions, there are strict safety obligations regarding the construction site. Unpaid helpers (e.g., friends, family) are usually covered by your builders’ liability insurance in case they get injured and you, as the builder, are held liable. It's important to differentiate from paid helpers or illegal work—here, the builders’ liability does not apply; responsibility would rest with the construction industry's trade association. Check the exact contractual conditions of your policy and coordinate closely with nextsure to ensure that your DIY contributions are adequately covered.
Cost factors: What influences the premium of your construction liability insurance?
The cost of a builder's liability insurance is influenced by various factors. The most important factor is usually the construction sum of your project: the higher the total costs of the construction project, the higher the insurance premium tends to be, as the potential risk of damage increases with the growing construction sum. The chosen insurance sum (coverage amount) also plays a role; higher coverage amounts for personal, property, and financial damages lead to a moderately higher premium. The planned duration of the insurance, which should correspond to the expected construction time, is also relevant. The type of construction project – whether new build, conversion, extension, or renovation – and its complexity can affect the premium. The scope and nature of the reported personal contributions can also impact the premium. Some insurers offer tariffs with a deductible; if you opt for this, you pay part of the costs yourself in the event of a claim, but benefit from a lower premium. Finally, the location of the construction site (e.g., urban with high frequency or remote) can also play a role. nextsure values transparency and is happy to explain the composition of your individual premium to you.
Incident at the construction site: How to act correctly and secure your claims
Despite all precautions, accidents can still occur on a construction site. In such situations, calm and correct action is crucial to maintain your claims against liability insurance for builders. Safety always takes top priority: provide first aid in case of personal injuries and secure the accident or danger site to prevent further damage. Under no circumstances should you admit liability on the spot. Document the damage in as much detail as possible: take photos or videos of the situation, the damage, and the local conditions. Note down the names and addresses of potential witnesses and create a written record of the incident. Report the damage to your insurance immediately—without unjustified delay. nextsure offers clear processes for this. Ensure you provide complete and truthful information regarding the incident and the extent of the damage. Follow your insurer's instructions and do not undertake unauthorized repair orders or payments to the injured party until you have coordinated this with the insurance company.
What happens if I, as a property owner, do not have a property owner's liability insurance?
nextsure is your modern partner in the digital insurance market, specialising in niche insurances like builder's liability insurance. Our mission is to offer you comprehensive and tailored insurance solutions that are easy to understand and fully digitally accessible. For your construction project, this means you benefit from a straightforward online sign-up process and digital contract management that is available to you anytime, anywhere. We understand that every construction project is unique. That's why we don’t offer standard solutions, but rather bespoke tariffs tailored precisely to your needs and the specifics of your build. Despite our digital-first approach, expert advice from our insurance professionals is available if required. Transparency in terms and conditions is a given for us. Our unique value proposition lies in the combination of a specialised niche portfolio, in-depth expert knowledge, and fully digitised processes, supported by SEO-optimised content that provides you with comprehensive information. Trust nextsure for a worry-free construction process.
