Don’t wait until it’s too late to find out
If you’re paying for insurance then you want to make sure it will pay out in the event of a claim, otherwise what’s the point having it? In this mini blog series, we will be focusing on some of the common mistakes we see Contractors make when it comes to their insurance.
Don’t invalidate your contractor insurance policy!
One of the easiest ways you can invalidate a policy or claim is by not telling your insurer or broker about certain works you carry out – even if you only carry them out just the once. If you don’t declare these then you’re unlikely to be covered and you or your team will be happily working away thinking you are!
What works do you need to disclose?
So, what type of works do you need to disclose in your contractor insurance policy? If you answer yes to any of these, then you need to be disclosing them (although a good contractor insurance broker should be asking you these upfront)!
- Do you work on or construct any timber framed properties?
- Do you carry out any heat works?
- Do you carry out any work at height especially above 12 meters?
- Do you carry out any work at depth of more than 1 meter?
- Do you work on any MOD property/land?
- Do you work on any properties with asbestos even if it is non-notifiable?
- Do you work on any dockyards or water bases?
- Have you have ever had any insolvencies, bankruptcies, CCJ’s or previous liquidations, including company voluntary liquidation, for any business where you have been a director. This includes any business even if it has nothing to do with your current Contractors business i.e. a car sales business?
Declare these works to be covered in your contractor insurance
None of the above are automatically covered in most Contractor policies, you need to declare them to be covered. Many Contractors set up a policy at renewal time, answer the relevant questions and then forget about it until the next renewal (let’s face it, most people do the same).
It is so important to notify your insurer or broker if you are due to start work on any of the above so they can make sure you have the correct cover.
An example of how it can go wrong
Let’s take a real-life example; you answer ‘no’ to working on timber framed properties at renewal (which is true at the time). Six months later you are offered a big contract which involves building a timber framed property. You begin work and forget to advise your insurer or broker. During the build there is a fire which causes serious damage to the property.
Unfortunately, you are not covered under your policy as you did not declare you were working on a timber framed property and now you have to foot the bill.
Don’t get caught out! Remember to advise your insurance broker if any of your works change. Speak to the team at Glowsure today for help and advice!
Talk to Glowsure – Contractor Insurance Specialists
If you’re unsure about any of the points raised in our blog, talk to Glowsure. We’re commercial property and construction insurance specialists who can give accurate advice and information based on your circumstances.