Why Insurance Is So Important in Commercial Fire Protection

Commercial fire system contractors are often responsible for:

• Large-scale alarm or suppression system installations

• Ongoing testing, servicing, or commissioning

• Compliance with strict standards (e.g. BS 5839, BS 9251, EN 12845)

• Working in high-risk environments (offices, retail units, schools, factories)

• Coordinating with multiple trades on busy construction sites

Any mistake can cause costly damage, reputational loss, or serious injury — and your insurance is what stands between a claim and your business.

The Essential Insurance Policies for Commercial Fire Contractors

Public Liability Insurance

This is the bare minimum for any contractor on a commercial site. It covers claims if your work causes injury or property damage to third parties.

Example: While installing detectors, you accidentally damage a client’s ceiling grid or cause disruption that affects their operations.

• Usually required at a minimum of £2 million

• £5 million–£10 million often required for public sector or high-value sites

• Proof of cover is often needed before site access is granted

Employers’ Liability Insurance

Legally required if you employ anyone — including apprentices, part-time staff, or site operatives.

Covers compensation and legal costs if an employee is injured or becomes ill because of their work.

• £10 million is the legal minimum

• Fines for non-compliance can reach £2,500 per day

Professional Indemnity Insurance

Required if you design, specify, or sign off systems — including fire alarms, suppression layouts, or certifications.

Example: You submit fire alarm drawings that don’t meet building regs. The project is delayed, and the client sues you for costs.

Many commercial contracts require PI cover between £250,000–£2 million, depending on project size and scope.

Contractors All Risk (CAR) Insurance

This covers:

• Damage to your work in progress

• On-site materials or fixings

• Unforeseen damage before handover

• Temporary site equipment or structures

Essential for large commercial installs where you’re responsible for materials on site.

Tools and Equipment Insurance

Most commercial contractors carry thousands of pounds’ worth of gear, including:

• Testers and analysers

• Ladders, drills, and access tools

• Laptops or tablets used for commissioning

Make sure your tools are insured for:

• Theft (including overnight van storage)

• Accidental damage

• Transit between sites

Product Liability Insurance

If you supply products (such as alarm panels or mist nozzles), you can be held liable if those components fail and cause damage — even if you didn’t manufacture them.

This is often bundled with public liability but must be listed as a separate line item.

What Clients and Contractors Expect

Most commercial clients and principal contractors will expect:

• Proof of insurance before site access or contract signing

• Certificates showing cover levels and expiry dates

• Named contractors or subcontractors under the policy

• PI insurance confirmation if any design, sign-off, or certification is involved

• Cover that complies with health and safety obligations, CDM regs, or framework rules

If you can’t provide the right documentation, you may lose the job — no matter how good your work is.

Is This Insurance Legally Required?

Only employers’ liability insurance is required by law.

However, public liability, PI, and other covers are contractually required on most commercial projects. You won’t pass PQQ checks or be allowed on-site without them.

Who Needs This Type of Cover?

• Fire alarm system installers

• Suppression and sprinkler contractors

• Commissioning engineers and sign-off specialists

• Companies working in retail, schools, hotels, hospitals, data centres, and warehouses

• Any fire protection business taking on commercial projects or subcontracted packages

Whether you’re handling a fit-out, a system upgrade, or long-term maintenance — you need insurance that matches your environment.

How Much Does It Cost?

Combined policies can reduce your total cost while ensuring full protection.

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/