Demolition contractors insurance: why it’s so hard to place — and how it gets placed

Why demolition sits at the hard end of the market

Every trade insurer keeps a list of risks it declines automatically, and demolition appears on most of them. The reasons are not mysterious: the work is deliberately destructive, it often happens hard up against buildings that must stay standing, and when something goes wrong the damage tends to be serious and expensive. So there is no meaningful online market. If you’ve tried the comparison sites, you’ll already know — the trade usually isn’t even in the drop-down.

We’ll be honest about what that means: this page isn’t about getting past an online form, because for demolition there is no form to get past. It’s about what the underwriters who do write demolition want to know — and this is exactly the kind of placement where a broker earns their keep.

What demolition underwriters actually look at

Height and depth

Policies for demolition contractors commonly carry limits on the height of structures worked on and on work below ground level. If you take down taller structures, or your jobs involve significant excavation or basement work, that needs to be on the table from the start so the placement is built around it rather than tripped up by it.

Hot works

Cutting and burning are part of a lot of demolition, and underwriters who write the trade expect to see hot works — with the controls to match: hot work procedures, fire watches, proper equipment and housekeeping. Declare it fully. An undeclared hot works exposure is a far bigger problem than a declared one.

Asbestos

Asbestos removal is licensed work, typically carried out by licensed contractors and insured separately in its own specialist market — a general demolition policy is not where asbestos removal cover lives. What your underwriter wants to understand is how asbestos is dealt with on your jobs: surveys before work starts, and whether removal is passed to licensed specialists. Be straight about it; this is one area where vagueness costs you.

Explosives

Explosive demolition is a separate specialist area entirely. If any part of your work involves it, say so at the very start — it needs specialist placement in its own right, and it changes which markets are relevant.

The neighbours: debris, vibration and dust

A large share of demolition claims involve property the contractor never touched on purpose: debris, vibration, dust, damage to adjoining and nearby structures and services. Underwriters look hard at how you manage that boundary — methods and sequencing, exclusion zones, protection and monitoring, and how close the nearest occupied building is on a typical job.

Contracts demanding high liability limits

Principals and main contractors often require demolition subcontractors to carry liability limits well above what a firm would otherwise buy, along with other insurance conditions buried in the contract. Increased limits can usually be arranged, but the time to sort it is before you sign — send the insurance clauses to your broker with the enquiry.

No online route — and why that’s not the disaster it sounds

For most trades, the broker is the better route. For demolition, the broker is effectively the only route — and that’s not a bad thing. It means your risk is presented in writing to a human underwriter who chose to look at demolition: your methods, your kit, your people, your record, your controls around heat, asbestos and neighbouring property. We can’t promise acceptance — nobody honestly can — but we know which underwriters consider demolition, we can usually find a market, and we’ll tell you quickly and straight if we can’t.

The cover a demolition business usually needs

Most programmes are built from the same blocks, sized for the trade: public liability for injury or damage to others — the heart of any demolition placement; employers’ liability, a legal requirement if you employ anyone, including labour-only subcontractors; contractors all risks where the contract makes you responsible for works or materials; and own and hired-in plant cover for the machines the whole job depends on. The shape follows the contracts you work under, which is why we ask to see them.

What to have ready when you call

The call goes quicker if you know roughly: turnover and wage bill, who works for you (employees and labour-only subbies), the split between soft strip and structural demolition, typical structures and maximum heights, methods and plant, any hot works, how asbestos is handled on your jobs, whether anything involves explosives, claims in the last five years, and any contract conditions or limit requirements you have to meet. Then call 0117 325 0027. If it’s urgent, say so; we deal with time-pressed placements all the time, though we’ll never promise cover by a set date until an insurer confirms it.

Frequently asked questions

Why won’t online insurance sites quote demolition contractors?

Because most of the insurers behind them won’t write demolition at all. Every insurer keeps a list of trades it declines automatically, and demolition appears on most of those lists — the work is deliberately destructive, it often happens hard up against property that must stay standing, and losses can be severe. It isn’t you; it’s the trade — and it’s why demolition is placed through brokers rather than websites.

Does a demolition policy cover asbestos removal?

Generally, no. Asbestos removal is licensed work, typically carried out by licensed contractors and insured separately in a specialist market — a general demolition liability policy is not where that cover lives. What your underwriter will want to know is how asbestos is dealt with on your jobs: surveys before work starts, and whether removal is passed to licensed specialists. Be straight about it, because getting this wrong is one of the fastest ways to a coverage problem.

We use hot works on site — is that a problem?

It’s a rating factor, not a dead end. Cutting and burning are part of a lot of demolition work, and underwriters who write the trade expect it — with proper controls: hot work procedures, fire watches, the right equipment and housekeeping. Declare it fully and let the broker present the controls alongside it.

A contract requires a higher liability limit than we carry. Can you help?

Usually, yes. Principals and main contractors often require demolition subcontractors to carry liability limits well above what a small firm would otherwise buy. Increased limits can normally be arranged — sometimes with the existing insurer, sometimes layered elsewhere. Send the contract’s insurance clauses to your broker before you sign, not after.

What information do I need before I call?

Rough turnover and wage bill, who works for you (employees and labour-only subcontractors), the split of your work — soft strip versus structural demolition — typical structures and maximum heights, methods and plant used, any hot works, how asbestos is handled on your jobs, whether any work involves explosives, claims in the last five years, and any contract conditions you need to meet. Don’t worry if you don’t have it all; we’ll work through it on the phone.

Do you promise to get me covered?

No, and you should be wary of anyone who does — especially in demolition, where the market is genuinely limited. What we can honestly say is that we know which underwriters will look at demolition risks, and we can usually find a market. If we genuinely can’t, we’ll tell you straight and tell you why.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.