Contractors insurance

Contractors insurance It is a fact of life that accidents will happen and a serious injury could result in compensation costing you hundreds of thousands of pounds.

Even the most careful tradesperson or contractor needs insurance cover for public liability and if you have any employees then, by law, you need employers' liability insurance, even if they are only casual or part-time workers.

Any work at a customer's home or business premises carries the risk of an accident (and every prudent business needs public liability insurance) and the nature of the construction industry can result in complicated contractual arrangements. If your business provides design or advice then you will need professional indemnity insurance against an error in providing this kind of service.

Do not be fooled by the popular myth "you will be covered under our insurance"; no one arranges cover for anyone's benefit but their own! Make sure you get the right cover and the right premium because getting it wrong could be catastrophic!

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More information on contrators insurance >

More information on contractors insurance

Protecting Assets

Many businesses invest substantial sums in the equipment and materials they need to conduct their trade or profession. These tangible assets require insurance to repay the cost of repair or replacement if they become damaged, lost, or stolen.

The type of cover needed will vary according to the nature of your business, and the nature of the assets.

Cover typically insures for accidental loss or damage, which includes theft where this is accompanied by force of violence. Extended cover is available for certain additional risks, such as subsidence or leakage of sprinkler systems, and also against acts of terrorism.

It is usual to insure for the full value of replacement "as new" - termed reinstatement, but this is not always the most appropriate in special circumstances.

In arranging cover you might need to consider some of the following:

Equipment that is mobile, used at more than one location or that travels the country (or world!)
Customers goods, or other property that is in your custody but does not belong to you - are you responsible for damage?
Property that you have entrusted to another organisation, but that remains your responsibility
Items such as documents, accounting records or customer lists, where the cost of replacing the material will be very little against reproducing the information
Property where you find it difficult to adequately assess the correct value for insurance, or need a figure that can fluctuate

There are particular insurers who deal with specialist equipment such as computer systems, mobile or production plant, or valuable collections including antiques, art or jewelery. These can different methods of settlement of a claim that are most suited to the industry concerned.

Employer's Liability

Every business that has employees should have employer's liability insurance. It is required by law or you could be fined up to £2,500 per day. There are exemptions for some very small businesses but even if you only "borrow" a worker on rare occasions you must have insurance.

Cover provides protection for legal liability to your employees who have suffered injury or disease arising from, and in the course of, their employment. Standard cover provides £10 million any one event, with higher limits are available on request.

Cover can include:

Employees temporarily employed overseas
Indemnity for any director or employee if a claim is made against them personally
Indemnity to a principal
Legal costs including those arising from criminal charges brought under the Health and Safety at Work legislation

Public & Products Liability

Modern businesses are increasingly exposed to the possibility of large claims for compensation which arise from work being carried out, or from goods supplied.

Cover provides protection for legal liability to third parties (the general public) who have sustained personal injury or damage to their property. A choice of indemnity limits is available up to £50 million or higher if required.

Cover is tailored to operate in the geographic areas relevant to your business, and generally worldwide for products you supply. Specific additional cover can be provided for products sold or supplied to the USA or Canada.

Cover can include:

Contractual liability (including products if required)
Work at customers premises
Legal costs including those arising from criminal charges brought under the Health and Safety at Work legislation
Indemnity to directors, employees and principals
Cross liabilities between companies
Liability for incidental use of vehicles
Financial loss, where no damage has occurred

There are further liability related insurance covers available for rectifying defective work, recalling an unsafe or defective product, and for dealing with product contamination.

Group Accident

The death or serious injury of an employee can cause some significant additional cost to business, at a time when it might be important to give the right message to the rest of your staff. You might be faced with additional staff costs whilst they are unable to perform their duties, additional costs to make modifications to the workplace in readiness for their return, or additional costs in recruiting a replacement.

Many businesses recognise that the assistance that insurance provides can ease the handling of some of these issues by relieving the worry of financial strain. Whilst many people and businesses have planned for death, fewer are as prepared for disability.

Cover all employees, or just a targeted section (management & supervisory) - cover can be flexible
Insure for working hours only - or 24 hours basis (an accident can take place anytime)
Pay flexible benefits in the event of disability, rather than duplicate existing life assurance
Insure for replacement income during shorter-term absence, or during illness

Property in Transit

There is a general misunderstanding about property whilst in transit, that the insurance seems always to be arranged by someone else. Either the supplier is insuring the goods, or the customer is insuring the goods, or the haulier/courier/carrier is insuring the goods.

It can be dangerous to rely upon someone else's insurance cover, since it is generally arranged for their benefit and requirements, rather than yours.

Cover for goods whilst in transit can provide full replacement cost in the event of loss or damage during the journey. When a carrier insures goods it is usually limited to their contractual responsibility to you and has strict notification time limits.

By taking control of your own insurance this can be arranged to cover your specific requirements. Cover can be for accidental loss including unexplained disappearance or for limited perils only, from "door to door" or to meet with your terms of business. You retain control of claim handling, for improved efficiency and happier customers

Cover can include:

Cover damage undiscovered at the point of delivery
Cover goods that are returned, diverted or temporarily stored
Agreed settlement basis for branded goods or where distribution licences/franchise conditions are concerned
Cover for property at exhibitions and demonstrations

Engineering Risks

The safe and efficient operation of plant and machinery is governed by good business practice and a large body of safety regulation. Developed against this background, insurance services can provide access to a comprehensive range of expertise and support.

In addition to examination under statutory requirements, engineer surveyors can provide expert advice and consultancy services. Insurance products can support these with cover against misfortune, malfunction and any associated costs.

Typically, insurance can cover a wider range of damage to machinery and equipment, including breakdown risks to supplement any maintenance warranty. Specific cover can be provided to suit particular types of machinery, such as pressure plant, storage tanks, or computers, and associated covers can then extend this to include business interruption.

Claim settlement is frequently for indemnity values ("market value") but most insurers are prepared to consider reinstatement, other than in special circumstance.

In addition to providing inspection of statutory equipment, insurers have extensive technical resources and are able to offer preventative services, health & safety guidance and other risk-based consultancy.

Services can include:

Safety inspection of your machinery to comply with legislation and regulation
Examination of new plant on acquisition or installation, appraisal of designs and plans
Tailored insurance cover, including machinery movement & re-positioning, and equipment hired-in
Cover for mitigating actions taken to prevent an impending claim
Careful consideration of computer-based risks, and the extent of cover for malicious attacks and virus infection

Legal Expenses & Employment Rights

The red-tape and regulation associated with employment now presents a major concern to business, and the financial costs of a mistake can be crippling. New legislation is being introduced (almost) constantly so the battle to keep up can be enormously helped by 24 hour advice from legal experts and an insurance policy to cover compensation in the event of a transgression. Insurance solutions can cover a wide range of additional legal problems with flexible cover available to suit the differing needs of small or large businesses, whether sophisticated or novices.

Tax or VAT investigation, including PAYE and DSS Collections
Health & safety prosecution, regulatory investigation and protecting key business permits or licenses
Disputes concerning business property, equipment or vehicles
Disputes concerning contracts for goods or services purchased and provided
Cover can be provided for arbitration hearings and schemes

In some cases it is possible to obtain cover "After-the-Event" but the premium cost escalates dramatically to reflect the uncertainty of litigation.

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