What is classed as ‘High Risk’ in insurance terms?
Well generally speaking working at heights, underground, and using heat are treated as the higher risk activities for Public Liability Insurance.
The typical professions and contractors who fall into these categories include Roofers, Scaffolders, Ground Workers, and Drainage Contractors.
These trades and those similar pose a greater risk to insurers so the premiums are higher than those classed as lower risk. However getting the right insurance cover is crucial and could potential protect your company from going out of business should a claim be brought against you. Also having the correct insurance is a valuable sales tool when tendering for work. Other contractors sub-contracting work will only use professional companies with the right procedures and insurances in place.
Getting the right insurance cover
It has recently been estimated that 61% of Public Liability Insurance policies sold online are purchased outside of usual business hours, and estimated that a large percentage of these businesses have not received professional advice prior to purchasing their insurance. The worry about this is that do people understand what their insurance covers and do they have the right coverage for their activities.
Insurance like many industries has its jargon and the majority of people skim through the information not taking the time to read or fully understand what is being said or written. For instance when selecting additional cover does the average person understand the term ‘C.A.R’ or what this means? Even when the term is abbreviated ‘Contractors All Risk’ will not be understood to many. In these situations the coverage needs to be explained so you can make an informed decision as to whether your business requires such cover and also to make sure you are not being oversold cover you do not require.
When selecting your insurance you should make sure the policy will cater for your requirements, the majority of Public Liability policies are standard with set limits which will cater for many businesses. However if you have specific requirements then a tailored policy will suit you better.
Specific options can include:
- No Height Limits Available
- £10m Employers Liability
- Up to £10m Public / Products Liability
- CAR (Contractors All Risks) – Including Hired in and Hired Out Plant and Equipment Cover
- Theft Cover for your Own Plant / Scaffolding Equipment Being used
Whatever size your business and whatever your experience you should always speak to a professional. Understanding your business and your activities is very important as selecting the right insurer is vital. Insurers have various limits of cover, endorsements, and exclusions and no two policies will be the same.