Some prefer to take the direct route; others want to DIY. For contractors, however, the survey shows using insurance brokers is the way to go when it comes to arranging cover.
“The contracting sector has very specific insurance needs, particularly when considering work at height and depth, hotworks, work in hazardous locations, and specialist activity,” explained Richard Forrest Smith, chief executive at specialist insurer ECIC. “Without the correct level of cover, firms could find themselves at risk of inadequate insurance and all the associated costs and stress this entails.”
The findings of ECIC’s survey suggest that, for contractors, brokers are more than just the middlemen. “We would always recommend contractors use a broker,” added the CEO.
“They are able to guide contractors through the insurance buying process, ensuring they have the correct level of cover required as well as undertaking regular reviews in order to keep insurance covers in line with risk exposures,” he noted. “This is particularly valuable if a business has diversified and is carrying out new types of work.
“The importance of this shouldn’t be underestimated, so it’s good to see from our findings that the majority of contractors do arrange insurance cover with the help of an expert.”
Meanwhile the firm has the following advice for contractors looking to get covered:
- Be familiar with the Insurance Act of 2015.
- When buying online, ensure that the cover is sufficient and that you don’t let price be the sole consideration.
- Check thoroughly for cover restrictions.
- Being a member of trade associations could be an advantage, as members adhere to certain standards and are more likely to be considered a better risk.
- Look for interest-free credit for payment of insurance premiums.
Related stories:
What should brokers look for from insurers in 2018?
Brokers warned to check business clients’ coverage
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