Insurance Cohesion: Contractors All Riskon
With several interested parties on a construction site, often with their own insurances, keeping track of who is covering what can easily get messy. It is not uncommon for us to see one insurer covering the existing structures, a different insurer covering all the liabilities on site, a third insurer covering the Contractors All Risk and another covering any plant & equipment. This is often complicated further by having different brokers involved arranging the various products.
In the event of a claim, this causes complications with different loss adjusters’ opinions, different excesses and policy wordings, and an overall lack of control. This can lead to delays with settlements as there is debate over which policy reacts best and the proportion each insurer should pay in the event of a loss. Furthermore, when insurance for sites are arranged this way, it can also result in gaps in cover due to the wide presumption that one policy covered one area, where in fact it would be more suitable under another area.
When it comes to risk management on site during your build, multiple insurers inevitably result in multiple surveyors responsible for managing the risk on behalf of the insurer which they represent. As each surveyor is representing a different segment of the cover, it is likely that their risk management requirements will be different and somewhat contradictory of one another, meaning a potential breach of one policy by following the requirements of another.
Our construction experts work with you to understand the entire risk and take a pragmatic view of the entire site, exploring each exposure on its own merit. From here, we look to reduce the number of insurers with a view to blending covers together to remove the gaps. This approach also allows us to ensure full disclosure to fewer insurers and means in the event of a claim, your settlement is dealt with by one person (or one team) who can settle your loss quickly. During the build, this strategy allows us to work with a single surveyor to create a bespoke risk management solution that is suitable for your needs, whilst also meeting the requirements of the insurer.
Given the fact that we are also able to look at your Latent Defects Insurance, Right to Light Insurance and other Legal Indemnities early on, we often have a very strong idea about your site from the information we have already gathered. Where applicable, this allows us to liaise with insurers in more depth to ensure you are getting adequate cover, at competitive rates.
To speak to us today about your upcoming projects, contact us on:
T: 0161 830 7556