Are you confident your Construction Insurance policy will pay when you come to claim?
Let’s face it, insurance isn’t the most exciting of subjects but it is a necessity for those in Construction. As a busy Builder or Construction Business Owner, getting relevant cover at the most attractive price, quickly and easily, is probably your goal.
And while there is nothing wrong with that, you should be aware that Construction Insurance can be quite complex, depending on the type of activities you carry out.
That is why we always recommend that you simply don’t buy the first policy you see online because it appears to give you the cover you need, and at a good price.
Why is this?
Buying Online can be full on pitfalls if you get it wrong – especially with the answers to online forms. This means that in the event of you needing to make a claim, you could find that it is rejected for several reasons. Here are some examples:
• Some policies may not extend (or are inflexible) to cover other aspects of work you may undertake in the future. Take care here !
• People sometimes ‘misrepresent’ the area of their Business Trade in order to get a cheaper quote (eg., putting down General Builder when most of the work involves, say, Groundwork or Demolition).
• Incorrect financial information is provided about labour costs eg., subcontractors and labour-only that are used
• Not disclosing claims history in order to get a cheaper quote is a classic error.
This is not an exhaustive list – but just a few important areas where we have seen claims rejected.
Will your claim be successful?
If you misrepresent or not advise your Insurance Provider any of the information you are asked when applying for cover, you leave yourself and your business exposed to having any valid claims rejected.
That could be disastrous for any business.
Not only could your well-earned reputation be destroyed, losing you future contracts, but depending on the type of claim it is, your business could potentially go under. Imagine if an employee gets injured and you’re not covered!
Don’t forget that if a claim is rejected due to reasons of non-disclosure, this could be classed as fraud and could prevent you getting further insurance and some other financial services in future. This may leave you unable to trade.
Don’t get caught out!
Getting the most appropriate Construction Insurance cover for your circumstances is key to protecting your business now, and in the future. As this can be complex, we advise you to follow these three simple rules:
• Always seek advice from Specialist Construction Insurance Providers or Brokers who can guide you. More often than not, they are cheaper than online providers, too, because they have specialist knowledge of your requirements and the insurers who can meet them
• Advise your Broker if you carry out any specialisms or something outside your ordinary day to day work activities
• Never assume anything related to your cover – always ask!
Finally, we don’t want our clients to have any sleepless nights over this. So, if you need any advice or guidance regarding your existing or new cover, don’t hesitate to contact our Construction Team on 0207 731 3700 or via email at firstname.lastname@example.org
We will be more than happy to help and make sure you have the most suitable protection for you and your business – and at a cost-effective price.