During a construction project many things can go wrong, from clients refusing to pay to theft or vandalism of expensive plant equipment.
Your experience of managing building projects will help you deal with problems as they crop up but some risks are outside your control as a building contractor. Risks that can dent your profit, or even mean you lose money! Ultimately, putting your own business in jeopardy. It’s crucial to look at the risks involved and make sure you have insurance in place to cover you.
What are the risks for Building Contractors?
Whether it’s property, materials, labour or tools there are some common risks you should consider in terms of their impact on the project and business, whether delays or extra costs, and what you could do if the worst happened.
Here are just some of the issues we’ve helped our Building contractor clients with in recent years:
- Work In Progress: Protecting work in progress and making sure it’s insured until handed over to the client. Often insurance on an existing property won’t cover an extension until it’s completed and the owner changes their policy.
- Theft & Damage: Materials need to be protected from theft and damage. This should also include when in transit to the site.
- Extreme Weather: Extreme weather events can cause serious damage to work in progress and as they seem to be happening more often, the risk is increasing.
- Vandalism: Vandalism to property, tools and materials can be very costly.
- Project Delays: Theft can also cause serious financial burden and delay projects, affecting materials and equipment whether it belongs to your business, sub-contractors or a third-party lease company.
- Temporary Buildings: Temporary buildings hired during the construction project should also be protected again theft and damage.
- Hired-in plant: Hired-in plant is a substantial responsibility and should be fully protected. A client recently transferred his insurance to Glowsure, after he had to cover the cost of a £35,000 digger stolen from a site due to being underinsured.
- Third Party Damage or Injury: Damage or injury to third party people or property as a result of negligence can have serious ramifications and you should protect yourself against the consequences.
- Employee or Subcontractor Damage or Injury: Protection against injury to employees and sub-contractors is also an important consideration for business owners.
- Cash Flow: Ensuring you get paid when agreed by clients or main contractor is critical for the survival of your business. Covering the risk of a dispute or delay should be considered.
- Contract works: Reviewing contracts terms and liabilities can be challenging but essential to understanding what liabilities you’re taking on.
How can Building Contractors Ensure They Are Protected?
To help secure the ongoing viability of your construction business and to ensure you don’t make a loss on a project; Building contractors need to be aware of the potential dangers where liabilities lie, and what insurance measures need to put in place to mitigate against the unexpected.
Glowsure urge all building contractors not to make assumptions about the protection a client, hire company or sub-contractor has in place. Check for any gaps in the protection at the start of each project and where the responsibilities and liabilities lie.
There’s an extensive list of requirements from public liability to specialist insurance for specific tasks. Plus, different levels of cover are available for each different type of employee! Speaking to an Insurance broker; who will be able to give you a comprehensive quote from a wide variety of Insurers; is imperative for your own business security!
Glowsure Insurance Brokers, specialist insurance support for building contractors and sub-contractors
Finding the right insurance and diligently reviewing countless pages of terms, conditions and policy limitations and exclusions can be arduous. So let the team at GlowSure do it for you!
Read more about what is Contractors All Risks Insurance?
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