Construction Industry Insurance – Why you need specialist, bespoke cover

Construction Industry Insurance

Construction Industry Insurance – Why you need specialist, bespoke cover

Construction sites can be some of the most challenging – and hazardous – working environments. However, the construction industry covers much more than just building sites: it provides homes and businesses with everything from plumbing and electrical services new build project management, building maintenance and repair, through to painting and decorating. Such a varied industry needs flexible, reliable insurance cover so that everyone involved, from business owners through to members of the public, have the reassurance and know that they’re covered financially.

Insurance is designed to take away some of the element of risk in what is a very risky business. It’s not just the danger of accidents at work that construction insurance can protect against. If adverse weather puts the brakes on a building project, a developer could lose thousands due to delays, fines or even the cancellation of an entire project. So, construction insurance isn’t just designed to protect you, it’s there to protect your business and your finances too.

Construction insurance can also cover damage to equipment, theft, the legal costs of injury claims and even provide you with specialist vehicle insurance for your vans and lorries. So let’s have a more detailed look at what type of construction insurance is available, and why you need to take out specialist, bespoke cover.

Public liability insurance

While not a legal requirement, this really is a ‘must-have’ inclusion in any construction insurance package. Designed to protect you and your business against the legal cost of accident or damage to property claims, it could save you thousands of pounds in lost revenue. Cover usually protects you and your business for claims up to £2-5million, although higher levels of PLI are available.

Employer’s liability insurance

Apart from vehicle insurance for any of your road-going vehicles, Employer’s Liability is the only type of insurance you are legally obliged to have. Even if your workers are sub-contractors or working on a part-time only basis, you still have to have ELI cover. Failure to do so can result in a criminal record, a large fine, and the possibility of your operation being closed down until your insurance is sorted out.

Employer’s liability defends you against the cost of claims for accidents at work from your employees, protecting you financially and legally.

Contract Works and Contractors All Risk Insurance

This type of insurance is specially designed for the construction industry and is a truly bespoke type of cover that protects you against almost any construction site eventuality, whether that’s a man-made or natural occurrence.

So, for example, if a wall your team of builders is working on collapses due to bad weather then contract works will cover the cost of rebuilding, while contractors all risk insurance covers the cost of stolen equipment. That means you can replace expensive plant machinery quickly and get on with the job with minimal interruption, or cover the cost of additional labour and materials charges without impacting on your bottom line numbers.

Director’s Liability Insurance

Directors often find themselves in the courts if a case is brought against a construction company for poor workmanship or a breach of contract. This can cost you thousands in legal fees, which in turn can trickle down and affect the profitability of your business. Director’s Liability Insurance won’t stop you being sued, but it will reduce the financial burden of legal costs and fees so that you can defend the reputation of your business as effectively as possible.

Other insurance options

While these are the key construction insurance policies you should have in your package, there are plenty of other options that you can choose, depending on the type of business you operate. If you’re a one-man operation then you may not need Office Insurance, but specialist vehicle insurance that also covers your tools while in the van is essential. Demolition contractors will certainly find bespoke Demolition Contractor’s cover vital, as well as Professional Indemnity Insurance and Subcontractor’s cover.

Legal Expenses insurance is a great addition to any package, as it gives you additional cover against legal costs for any claim or compensation case that may be brought against you, including claims for incorrect or substandard workmanship.

No matter what area of construction you’re in, a bespoke package can make sure that you’re covered for almost every eventuality, and at a price you can afford.

Talking to experts

While the vast majority of insurance brokers know the insurance industry inside out, they often have less of an understanding of how your particular business operates. Through no fault of their own, they may be unfamiliar with the specific demands of the construction industry, and the everyday challenges encountered by you and your team.

So, talking to a broker that not only has the right contacts within the insurance industry to get you a great deal, but a good understanding of the construction industry too means that you’ll get a bespoke service that suits you. Flexibility, the chance to change your package as your business changes, and a single point of contact that you know you can trust means you get complete peace of mind, as well as complete construction coverage.

Need help and advice with construction industry insurance? Call us today on 0117 955 6835.

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