What Happens If Your Insurance Expires on a Construction Site?

The Short Answer

If your employer's liability or public liability insurance expires while you're working on a construction site, you're exposed to serious legal and financial risk. In some cases, you're breaking the law.

This isn't a theoretical problem. Insurance lapses are one of the most common compliance failures in UK construction, and the consequences can range from being removed from site to facing unlimited personal liability for accidents.

Employer's Liability Insurance

The Legal Requirement

Under the Employers' Liability (Compulsory Insurance) Act 1969, every business that employs one or more people must hold employer's liability insurance with a minimum cover of £5 million. This is a legal requirement, not optional.

What Happens If It Expires?

• You're breaking the law — the HSE can fine you £2,500 for every day you're uninsured
• You can be removed from site — main contractors check insurance certificates regularly
• You're personally liable — if an employee is injured while you're uninsured, you could face unlimited personal liability for compensation and legal costs
• Your CHAS/SSIP accreditation may be suspended — most schemes require continuous insurance cover

Public Liability Insurance

Not Legally Required, But Practically Essential

Public liability insurance isn't a legal requirement for all businesses, but virtually every main contractor and client requires it as a condition of working on their sites. Typical minimum cover is £1 million, with many clients requiring £5 million or £10 million.

What Happens If It Expires?

• You'll fail pre-qualification checks — clients and main contractors verify insurance before allowing you on site
• You won't be able to tender for work — most tender documents require current insurance certificates
• You're personally liable for third-party claims — if a member of the public is injured or property is damaged, you're paying out of pocket
• Your professional reputation takes a hit — word travels fast in construction

Why Insurance Lapses Happen

Most contractors don't let their insurance expire on purpose. The common causes are:

• Renewal reminders buried in email — your broker sends a renewal notice, it gets lost in your inbox
• Cash flow timing — the premium is due at an inconvenient time, and you plan to "sort it next week"
• Assumption that there's a grace period — there isn't. When your policy expires, you're immediately uninsured
• Multiple policies with different renewal dates — employer's liability renews in March, public liability in September, professional indemnity in January... it's easy to lose track

How to Prevent Lapses

Set Up Multiple Reminders

Don't rely on your broker's single reminder email. Set alerts at:

• 90 days before expiry — start the renewal process
• 30 days before expiry — chase your broker if the new certificate isn't issued yet
• 7 days before expiry — final check that the new certificate is in hand
• Day of expiry — verify the new policy is active and upload the new certificate

Centralise Your Documents

Keep all insurance certificates in one system where you can see expiry dates at a glance. If you're still relying on a folder of PDFs or a filing cabinet, you're taking unnecessary risks.

Update Clients Immediately

As soon as you receive a renewed certificate, share it with every client and main contractor you're currently working for. Don't wait for them to ask — proactive sharing builds trust.

Summary

Letting insurance expire on a construction site is one of the most dangerous compliance failures you can make. The consequences are real: legal penalties, loss of work, personal financial exposure, and damage to your reputation. Set up a reliable tracking system, and never assume someone else is watching the dates for you.