Construction Business Insurance
This blog will outline some of the many factors that are making construction business insurance more necessary, complicated and often, more expensive. We will outline the key issues facing the industry, and outline with a combined insurance policy makes sound business sense.
The Growing Risks of the Construction Sector
Despite recent doom and gloom in the news, the UK construction sector continues to grow. In the three months to July 2018, the sector grew by 3.3%. According to The Office of National Statistics, in 2017 the number of construction firms increased by 3.4%, and employment in the sector rose by 3.8%.
As growth continues and more firms are competing for projects, the complexity of running a construction business is increasing. This has placed more pressure on bosses and manager, and, let’s face it, pressure often results in mistakes. Even the smallest mistakes on site can cause massive risks and a huge claim. This makes construction business insurance more important than ever.
We live a ‘sue’ culture, and we believe construction and contractor businesses now face more risks than ever before. We want to offer some advice and explain why a comprehensive contractor combined policy can help cover some of the biggest risks that businesses in the sector now face.
Everyone who operates a contractor business understands the obvious risks, so we won’t split hairs. We will discuss some of the risk’s companies are most likely to of overlooked, based on our experience. Looking at each of these areas, before setting up your construction business insurance can save the business money.
Growth of bona-fied subcontractors
Bona-fied subcontractors are usually hired to complete a specific project, such as electrics or roofing, and typically fill in skills gaps within a company’s current workforce. Because bona-fied subcontractors work independently, they need to have their own liability insurance policy. If they do not have correct construction business insurance cover in place and are injured working on your project, your business could be liable and must fit the bill.
The Growth of online cybercrime
Online security is probably overlooked the most. Construction companies are using digital media, be it a website, adverts or social media to communicate with potential customers. If your website was to be compromised or taken over, your reputation could be on the line. Also, if any sensitive data is stored on your site or system, you could be liable for fines or legal action.
Hire of equipment
Tool and equipment hire are on the rise, as more projects require special tools that some smaller contractors simply cannot afford to purchase outright. These tools can be very costly, and if they are damaged, lost or stolen, your business could be left with a hefty bill.
Tools on site
Like the above point, a contractor company can have £1,000’s worth of tools on site. These tools can easily be damaged, lost or even stolen. Whilst simply buying a new hammer here and there might make sense, costs can easily mount up! Tools insurance is a must have a policy for all businesses in the construction sector.
Make sure your policy protects you!
We always recommend you keep an eye on your construction business insurance policy and make sure each year you review the cover you need. So many companies simply renew their contracts and later pay the price. A commercial combined policy allows you to pick and mix a wide range of covers and combine them into a single policy. This offers your business the very best protection, and offers great value for money, as you only pay for the cover you need.
Get a construction business insurance quote
At 1st Choice Insurance, we are a leading independent insurance broker who listens to the needs of your business and creates a bespoke policy to cover your unique risks. Never be under-protected, never overpay! Talk to an expert who understands the construction business insurance landscape is vital. So give us a call on 0800 078 7003, or visit our website where you can get a quick quote.