Various covers available to companies within the construction industry.
What is Construction Insurance?
Construction insurance is a term used to summarise the various covers available to companies working within the construction industry.
Core covers typically include Employers Liability, Public liability, Contractors all risk (CAR) and own plant/ hired in plant covers, however at SJL we have a wide range of insurers meaning we can negotiate market-leading rates for the following covers:
- Professional indemnity
- 6.5.1 non-negligence cover
- Insurance backed guarantees
- Project specific policies
- Advance loss of profits
- Delayed start-up costs
- 10 year latent defect cover
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Who is Construction Insurance for?
Construction Insurance is designed to insure the complex risks facing companies who work within the construction industry. Because of the ever-changing landscape of the industry, including the consistent increasing of health and safety requirements, the policies are designed to offer bespoke covers that adapt to these emerging requirements and risks.
Covers differ greatly depending on which role a company has within the industry. For example, a Professional Indemnity policy for an Architect firm would offer significantly different covers to Professional Indemnity cover for a lead contractor who is engaging in full design and build contracts.
Construction Insurance and the different types of cover it affords are suitable for a wide range of companies, including:
- Manufacturers and distributors of construction materials (including companies engaged in modern methods of construction contracts)
- Building contractors
- Lead contractors / developers
- Sub-contractors and specialists trades
- Architects and design professionals
- Plant and equipment hire companies
What covers and solutions can SJL offer
We offer full turnkey solutions for both annual & project specific insurance programmes combined with bespoke, tailored coverage.
Examples of our existing client footprint include:
- Owner Controlled Insurance Programme (OCIP);
- Contractors Controlled Insurance Programme (CCIP);
- Insurance backed guarantees & surety bonds;
- Advanced loss of profit & delayed start-up costs;
- JCT 6.5.1 (Non Negligence cover);
- Contractors All Risks/Erection All Risks;
- High Risk Liabilities;
- Latent Defects;
At SJL Insurance Services, we build insurance programs suited to your business, based on your specific requirements.
Built into our service is assistance in reviewing contracts to highlight your contractual insurance requirements, with specific expertise in JCT contracts.
How does Construction Insurance work?
Depending on the type of business you are, Construction Insurance works to provide cover for the risks to which you are exposed.
Examples of the ways that core Construction Insurance can work to protect your business include:
- Employers Liability insurance: No matter how careful and diligent you are with risk assessments and method statements, accidents involving employees at work regularly happen. Employers liability insurance is designed to cover you in the eventuality that your employees are injured at work.
- Public liability: When working on site it is normal that there is a large number of people and high value of equipment and materials in a small vicinity. With this in mind, a small negligent act by an employee can easily lead to mass third party injury and property damage. This cover will pick up the legal expenses and compensation payments following an event causing both third party injury and property damage.
- Contractors all risk: From the day the ground is broken, through the project being signed off as practically complete, there will be an accumulation of materials on site. Between the aforementioned times, this cover will pay to replace/ reinstate materials from loading, through to being structurally in place on site, completed structures for maintenance period/ for short periods of times pending sale on residential properties, and free issue materials whilst on site.
- Own plant: Comprehensive cover for plant and machinery belonging to you, including cover whilst in use, in transit, and in temporary storage. Cover is acceptable when the plant is either owned by you, in the process of being purchased, under a lease or deferred purchase agreement by you.
- Hired in plant: Cover for plant hired from a third party. This includes legal liabilities you assume under contract when hiring out plant, including physical damage to the equipment, and continual hire charges that you are financially responsible for following physical damage.