Construction Industry Insurance 

Construction Industry Insurance 

It has never been more important for businesses operating in the construction sector to have comprehensive insurance arrangements in place, as the industry faces the risk of higher settlement costs, the frequency of claims increasing, as well as the knock-on effect of the Grenfell tragedy and the demise of Carillion. In addition, as a result of the volatile economic climate, clients may be more likely to take action if things don’t go to plan.

If your business operates in the construction sector then read on to find out how our insurance experts at The Yorkshire Broker could help.

What is construction insurance?

There are several types of insurance policies that provide construction businesses with cover for property damage, third-party injuries or damage claims. The term construction insurance is used to describe these types of policies and will provide cover for any financial losses that you incur as a result of an incident taking place.

Types of construction insurance policies

Have you ever wondered what insurance is needed for businesses working in the construction sector? 

Construction insurance includes the following types of insurance policies:

  • Public liability insurance: Provides protection if your business activities kill or injure a third party (non-employee) or damages their property. Construction business are likely to work near other people and their property, this is a type of insurance that you should certainly consider to ensure that you’re covered against potential claims.
  • Product liability insurance: Provides cover if a product that you supplied, manufactured, adapted or imported has caused damage or injury to people or property.
  • Employers’ liability insurance: This is a compulsory type of insurance for employers, regardless of whether the member of staff is permanent, temporary, a volunteer, contractor or freelancer. The minimum level of protection is £5m, which will cover the cost of compensation claims if they get injured or ill at work.
  • Contractors all risk (CAR) insurance: CAR insurance provides protection against damage that occurs to site materials and works that you have been contracted to undertake. These are normally excluded under a regular public liability insurance policy.
  • Professional indemnity insurance: Provides cover against negligent advice or if your work causes a problem for your client (for example if a construction project is delayed). If your construction business offers advice to clients or is responsible for designs, this type of insurance should be considered. Some clients also require construction businesses to have a certain level of cover in place, so it is worth checking this before you start work.
  • Structural warranty: If your construction business is responsible for building or buying new buildings, then a structural warranty also know as latent defects insurance will provide you with 10 years’ worth of protection. This includes cover for latent defects that occur during the build period, but which are not discovered until after completion has taken place and is also known as latent defects insurance.
  • Plant and machinery insurance: If you use plant and machinery on site (such as diggers, excavators cherry pickers, or generators), regardless of whether you own the equipment or you’ve hired it, this will help to cover the replacement or repair costs in the event that it is stolen or damaged.
  • Engineering Inspection: Ensures that you keep any machinery and equipment in full working order, so that it is safe to use. The insurance ensures that inspections are carried out regularly by a competent engineer and are arranged for you by your insurer.
  • Legal Expenses: Cover in the event of employment disputes, legal defence costs, contract disputes, Tax, VAT, PAYE and NIC investigations and more.
  • Directors and Officers Insurance: Directors’ and officers’ insurance (also known as D&O insurance or management liability insurance) will protect your business if a claim is made directly against the directors and officers of your company. Even if you’re the owner of a limited company, personal claims can still be made against you, and therefore a D&O insurance policy can provide invaluable protection.

These are just examples of some of the types of construction insurance policies that we look after at The Yorkshire Broker. As we know that no two businesses are the same, speak to us today to find out which policies will best meet your needs.

What construction insurance do I need?

If your business operates within the construction and building trades industry, then you will require construction insurance. However, the type and amount of cover that you choose depends on the nature of your business and the work that you do.

There are several factors that you need to consider when it comes to thinking about the construction insurance policies that your business needs. These include things like:

  • The size of your business.
  • The industry you operate in.
  • The way you operate.
  • The number of employees that you have.
  • The size of your contracts.

When considering the construction insurance policies that you need, it’s important to ensure that you have taken out enough cover to fully protect your business in the event of an incident occurring, which is something that The Yorkshire Broker can help with. 

The cost of construction insurance

The premium that you will pay for construction insurance depends on the level of cover that you need and the breadth of cover that your business requires.

Although construction insurance may be another cost for your business, just think about how much you could be forced to pay in the event of a successful compensation claim or a costly theft. Would you be able to continue trading as a result?

It is crucial to ensure that you are properly protected in the event of an incident occurring. With that in mind, at The Yorkshire Broker we will take the time to understand the specific needs of your business and recommend the amount of cover that is best suited to you.

What else do I need to know about construction insurance?

When taking out a construction insurance policy, it is important to ensure that you have read your policy documents thoroughly. This is to double check that you are aware of any exclusions that may apply.

In addition, if you are thinking about the amount of cover that you need for your business assets insurance policy, make sure that you consider the total value of replacing your tools and equipment, as this could prove to be a costly mistake if the worst should happen. Also, remember that even if you work from home, you are still legally obligated to take out employer’s liability insurance if you employee staff, as failure to do so could result in a financial penalty.

How can I get construction insurance?

In the event of a claim, could your construction business survive without the correct insurance in place?

With many years of experience The Yorkshire Broker are the construction insurance experts. We understand that construction companies and building trades face unique risks and challenges on a day to day basis, and that you need bespoke construction insurance that works for you and gives your business the level of cover that you require.

Give your business the protection that it deserves today – if you want to find out how much peace of mind costs, contact The Yorkshire Broker by calling 01924 929070.

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