EC Insurance Company Limited (ECIC), the specialist insurer for the contracting market, is warning contractors to ensure they check the terms and conditions and any exclusions before buying insurance cover.
The contracting sector is coming under increasing pressure from rising material costs and a reduction in access to affordable skills. This may lead firms to look for cost-saving measures in other areas such as insurance and opt for a generic policy that may not cover all the risks they face in their day to day work.
ECIC is urging contractors to use a broker and seek out specialist cover for their trade. This will help protect against the risk of an insurance claim not being paid as well as protect them adequately should a claim be made against their business.
The key restrictions in insurance cover that contractors need to check are:
•Height limits
•Depth limits
•Activity restrictions
•Premises restrictions
•Hot work exclusions
•Activity exclusions
•Subcontractors not being covered
Richard Forrest Smith, CEO of ECIC said: “The process of arranging insurance cover shouldn’t be rushed, particularly if the type of contractor work being covered entails a variety of risks such as working at height or with hot materials.
“While there are specialist covers available online to purchase direct from an insurer, it makes absolute sense to use an insurance broker – they will seek out the cover that’s right for your business and the risks you face. They will ask all the right questions to ensure you buy adequate protection and most importantly, they will know the claims record for the insurers they work with.
“This is one area where contractors should use expert help and find specialist cover – the risks of not doing so can be far reaching.”
Contractors can contact BIBA – the British Insurance Brokers Association – for a recommendation of brokers who specialise in their trade area or region.