Construction Insurance Checklist
The construction trade can be a hazardous industry, as a business owner you want to protect your business and the general public in the event that something goes wrong. There are lots of situations when contractors might find themselves facing a liability insurance claim.
Below is a brief description of some of the insurance available to purchase and how it helps protect your business
and customers in the event of an incident.
Public and Public Liability Insurance covers you for bodily injury to third parties or property damage which arises in the course of your daily activities, for example damage to a client’s premises or neighbouring property whilst you are undertaking work.
Employers’ Liability Insurance is a legal requirement for all employers within the UK. The minimum required limit is £5,000,000 although most insurers give £10,000,000 as standard. The policy is designed to protect employees’ who sustain an injury or illness during their normal business activities by providing compensation.
You may need Employers Liability Insurance for someone who works for you if:
• You have the right to control where and when they work and how they do it
• You deduct national insurance and income tax from the money you pay them
• You supply their work materials, a van or equipment
Contract Works Insurance covers work in the course of construction before it is handed over to the client. It can pay to repair or to redo the work that is in progress if it is damaged by an insured event e.g. fire, flood, storm, vandalism or theft and includes both the permanent and temporary works. It can cover the cost of materials, labour and tools to put the site back to the position it was before the loss occurred.
Construction Professional Indemnity, also known as Design and Construct Professional Indemnity, is designed to protect contractors and subcontracted specialists, for allegations relating to errors in their work or incorrect
design. The common misconception is that if you didn’t do the design, your client can go straight to the person that did. However, your client has signed a contract with you, and as such believes you to be responsible for all
elements of the design and build. Therefore, in the unfortunate event that something goes wrong, the contractor
will be the first point of call as they have the relationship and duty of care to the client. The client will find it
difficult to pursue a third party, as no legal relationship exists.
You may also want to consider the following types of insurance:
Goods In Transit and Marine Cargo Insurance. Goods In Transit covers goods against loss or damage while in your vehicle or when sent by a third party carrier. Marine Cargo Insurance goes a step further and covers losses arising from damage to goods whilst being transported around the world by road, rail, sea or air.
Directors’ and Officers’ Liability insurance, or management liability insurance, is insurance cover that offers financial Protection to those who are the director, partner or officer of a company. It is designed to cover the cost of claims for compensation made against the insured individual.
Personal Accident provides financial protection in the event you or employee is unable to work due to sickness or injury
Legal Expenses Insurance is purchased to fund the costs of legal advice and/or the costs of bringing or defending a court case.
Commercial Fleet & Breakdown Insurance
Our Services and Standards
Clarke Williams Limited provide bespoke and holistic advice to meet the insurance needs of business owners and private clients in respect of their property, liability and indemnity needs.
Our team has over 50 years’ experience in the commercial insurance market, providing cost-effective risk management solutions to companies throughout the UK and Europe.
When you call us, we want you to feel safe in the knowledge that you have been paired with you own personal contact who understands your business needs and the needs of your industry.
What to expect from Clarke Williams?
✓ We will be open, honest and transparent with you at all times
✓ We will act with integrity in everything we do
✓ A no-obligation review of your insurances and identification of any gaps in cover
✓ Dedicated Account Handler – we are not a call centre
✓ We’ll be here to help if you need to make a claim
✓ We believe that you have every right to expect value for money from us, and that’s exactly what we always strive to delivery
The Advice Process
We offer an initial discussion (without charge) at which we will describe our services more fully and obtain information about your cover requirements. If you decide you would like us to provide a recommendation, we will:
1. Assess your current position, needs and objectives
2. Gather and analyse risk information in order to obtain quotations
3. Prepare a presentation based on you and your businesses risk information
4. Recommend and discuss any actions we think you should take and, in your agreement arrange relevant solutions for you
We believe in delivering on our promise to you, ensuring that we do what we say we will do.
We offer a wide range of insurance products and deal with several insurers and intermediaries in the market place. When obtaining insurance quotations, we will approach insurers that we believe to be suitable to your individual needs, and on some occasions may only approach one or a limited number of insurers who we believe to offer a specialist cover.
Further Reading
- Contractors All Risks and Plant Insurance
- Design and Construction Professional Indemnity Insurance
- Fleet Insurance
- Contractors Liability Insurance
- Performance Bonds
- Guide to JCT Insurance
- Labour Only Subcontractors v Bona Fide Subcontractors
