CLA (Risk Solutions) Ltd
When looking for contractor’s insurance, one size does not fit all contracting businesses.
The contracting sector is coming under increasing pressure from rising material costs and a reduction in access to affordable skills.
This may lead firms to look for cost-saving measures in other areas such as insurance and opt for a generic policy that may not cover all the risks they face in their day to day work.
Contractors risk underinsurance and higher costs in the long run and should check the terms and conditions and any exclusions before buying insurance cover.
Consequently, contractors are strongly encouraged to work with their insurance broker to seek out specialist cover for their respective trade.
This will help protect against the risk of an insurance claim not being paid as well as protect them adequately should a claim be made against their business.
The key restrictions in insurance cover that contractors need to check are as follows:
• Height and depth limits
• Activity restrictions
• Premises restrictions
• Hot work exclusions
• Activity exclusions
• Subcontractors not being covered
The process of arranging insurance cover shouldn’t be rushed, particularly if the type of contractor work being covered entails a variety of risks such as working at height or with hot materials.
While there are specialist covers available online to purchase direct from an insurer, it makes better sense to use an insurance broker who will seek out the cover that’s right for your business and the specific risks you face.
Other cover you may need Whilst remembering to insure your equipment, materials and a variety of activities, you may also need professional indemnity insurance if you provide advice to other businesses or one of your customers makes a complaint for negligence or financial loss against you.
You will also need employers’ liability insurance if you employ contractors, staff or part time workers.
In some cases, a contractors’ all risk insurance policy will be the most suitable for your requirements; for other businesses a more tailored solution may be needed.
As your broker, we ask the right questions to ensure we secure the correct levels of protection.
Most importantly, we will know the claims record for the insurers we work with.
This is one area where contractors should use expert help and find specialist cover – the risks of not doing so can be far reaching.
For more information about insuring your contracting business, call us on 0121 321 4600 or email us at email@example.com