Builders’ Liability Insurance Policy 
Builders’ Liability Insurance is also known as Building Under Construction Insurance. This policy covers the liability of the builder in respect of construction risks caused by his negligence or the negligence of his servants, agents or consultants which may result in bodily injury or loss of life to or damage to property of any workman on the site or of any member of the public.
The Insurance of Building under construction is made compulsory by section 64 of Insurance Act 2003 and it is enforceable by law. The objective is to provide security against the risk of bodily injury, death or property damage in the event of collapse of building under construction. The policy is required for every building of more than two floors.

Scopes of Cover
• Death of Site Workers
• Death of Third Parties
• Injury to Site Workers or Third Parties
• Damage to Site Workers’ or Third Parties’ Property
• Legal Expenses 

Protected Parties
• Site Workers
• Members of the Public

Liable Parties
• Owner and /or Contractor of the Building under Construction
• Sub Constructors
• Servants and Consultants of the Contractor or Owner
• Agents

Beneficiaries
• Survivors of site workers or public members who die due to collapsed construction work.
• Injured site worker or public member
• Third party whose property is damaged in collapse.

Category of Contractor
1. Federal 
2. State 
3. Private
4. Local Govt

Period of Cover
• Construction Period
• Maintenance Period

Premium 
The premium ranges between 0.1% and 0.5% depending on the category of contractor, estimated contract cost and risk location. 

Penalty for Defaulters 
Upon prosecution, offenders shall be liable to a fine of N250,000 or three years imprisonment or both (according to the Insurance Act 2003- Section 64 (3))