If I take out a construction policy, what could this cover me for?
Cover for legal liabilities including Public, Products, Environmental and Employers’ Liability insurance
Protection for the contract works including allocated materials
Cover for any hired in plant (including continuing hire charges) and temporary site buildings
Protection for assets held at own premises including materials
Cover for own plant and tools
Legal expenses including contract disputes cover
Personal accident and illness cover
Buildings cover for both completed structures and those awaiting refurbishment or redevelopment
Cover for pure financial loss
Protection against consequential loss
Professional indemnity insurance to cover design or contingent design liability – this is usually issued as separate policy
Surety bonds – including Performance Bonds, Advance Payment Bonds and Retention Bonds – issued as separate policies
Latent defects cover – issued as a separate policy
Building and allied trade contractors come in all shapes and sizes and their insurance requirements will vary.
For small companies, sole traders and partnerships with a stable workforce, it is likely that a simple per capita liability policy will be suitable. The premium for this type of policy is largely rated according to your trade and number of manual employees. Temporary employees can often be included.
Larger companies with multiple sites and a large workforce (often providing different trades) will usually require a bespoke policy, underwritten by insurance companies on a wages and turnover basis. This allows companies to operate without the need to inform their insurance company of changes to their workforce.
Often the cover will need to meet with contractual requirements – the awarding of contracts can be subject to evidence of appropriate insurance.
Painters and decorators
Plumbing and heating engineers
.......and many more
Why do you need this insurance?
Can you answer yes to any of these statements?
You have valuable tools and plant that need protection
You have contract works and materials to protect
To comply with contractual obligations
You need to cover your legal liabilities and have a support team to defend you in any court action
You need to be able to insure hired in plant at reasonable cost
To meet with statutory requirements – Employers’ Liability insurance is a compulsory insurance even if you only employ persons on a casual basis
Speculative build projects requiring insurance for existing and completed structures
I would highly recommend that anyone looking to renew their business insurance give Glentworth the chance to quote and hopefully you will be as pleasantly surprised as we were. We decided to move our business to Glentworth for both the fantastic price and for the efficient service that was provided. Many thanks Ben for all your assistance and for helping us reduce our insurance cost.
Sara Richards, DL Barrett & Son
Why use Glentworth for contractors insurance?
Glentworth has access to all major UK insurers who provide contractors insurance. We also have vast experience in arranging cover for all types of contractors nationwide.
Despite advancement in health and safety protocols, construction sites statistically remain high risk in terms of occupational accidents. Glentworth are expert in analysing risk management, with the view to reducing exposure to claims and therefore lowering insurance costs.
We are very happy to visit you, on site if necessary, in order to identify the appropriate covers to meet your insurance requirements.
Glentworth will take time to explain clearly the benefits of your policy and any conditions or restrictions that may apply.
If our clients need to make a claim, a familiar face from Glentworth will always be there to help.
Do I need Employers Liability Insurance?
It’s not just about PAYE employees
If you have PAYE employees then it is highly likely that you will need Employers Liability cover. However, that is not the end of the story and there are other instances when you will need it – even for volunteers! Read on.
If you employ subcontractors, or workers on a casual basis you could need Employers Liability cover. The main exception is if you engage Bona Fide Subcontractors (BFSC). It is important for our clients to be able to distinguish for insurance purposes, between a labour only sub-contractor and a bona fide sub-contractor. Understanding the fundamental differences is important to ensure that correct cover and pricing is applied to your insurance policy.
Labour only Subcontractors.
A contractor employs a sub-contractor for their labour only. The labour only sub-contractor (LOSC) does not supply any materials, the LOSC is being supervised by the Contractor.
In this context there is a master and servant relationship. The contractor’s liability towards the LOSC, and arising out of the LOSC’s activity when working for them, is considered the same as if the LOSC was a direct employee.
Since this is regarded as a master and servant relationship an Employers Liability and Public Liability exposure exists. Even if the LOSC has their own insurance i.e. Public Liability. The contractor would not be able to subrogate against it. There is case law setting precedents to support this.
Bona Fide Subcontractor (BFSC).
A master and servant relationship would not be considered to be in existence.
The BFSC would be providing materials, labour and supervising their own work and invoicing accordingly. There is no Employers Liability risk but contingent Public Liability cover is required. It is likely that it will be warranted under your own insurance that you check that each BFSC holds adequate Public Liability insurance.