Whether you need to protect your machinery or you envisage large public liability costs, taking out civil contracting insurance isn't a process you should rush. No two scenarios are the same, which means you should always aim for a policy that the underwriter tailors to your needs. Before proceeding, there are several factors to consider.
How comprehensive the insurance is
While there's always a temptation to sign documents and get to work swiftly to avoid loss of earnings, you may find not paying close attention to detail will result in bigger losses in the long term. For example, if a policy requires that you rectify damage to equipment or shortcomings of the project, or that you have to pay indemnity for claims, you may face big losses. Such clauses usually exist without protecting you or your company against circumstances that are beyond your control. When creating a contract, ensure you secure protection against external factors you cannot influence.
Whether the insurance is specific
Many companies provide civil contracting insurance, but not all of them are specific enough to cover your niche. Your company of choice should focus on the environment, the work you're doing and the equipment you use to ensure it's specific enough to provide comprehensive cover. In addition, consider whether add-ons are available, including:
Whether or not you need these add-ons depends on the circumstances of each project, as well as changes to your business. An adviser with plenty of experience can help you choose a package that meets your needs.
Understanding different insurance practices
Does your policy cover your equipment when you take it away from the site area? If not, and you don't intend on keeping it in one place, make sure you find additional cover. Similarly, if you're working in challenging environments, you may need a recovery policy that requires the insurer to help you remove your machinery in the event of boggy land. Don't assume that any policy will cover every eventuality until you discuss it with the underwriter.
Before signing on the dotted line, make sure you identify potential risks and hazards to yourself, your property, the surrounding areas and members of the public. When your insurance company has the right information, they can create an agreement that'll cover you in most eventualities.
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