Are you a contractor who completes repairs and alterations to homes and commercial properties? Do you deal with existing structures?
Many building’s insurance policies contain clauses that stipulate any work past cosmetics taking place in or on the property could cause the policy to cease or not respond should an incident or claim occur in relation to the property or works being done. Work deemed as cosmetic usually includes painting, laying new floors and carpets or general maintenance. This can potentially leave both the property owner and contractor open to a large claim.
This clause is most commonly found in one of the following sections:
- works completed
- contractors
- existing structures
Contractors Insurance and Existing Structures
Many contractors take out contract works insurance in the thought that this will cover the works and/or property, however, many of these exclude the existing structure. Specific insurance is required per contract for this to be covered.
Some contractors may be unaware that within the terms of a contract they are liable for the building. In the past many contractors were given standard contract terms for works that they completed. However, more than ever, these terms are now being tailored to the jobs. Where in the past you may not have been liable for a certain cover, it may now fall into your hands during work that you are completing.
Upon taking on any new contracts it is advised to check your liabilities and also advise any homeowners to check with their current insurers the position of their insurance coverage whilst you are completing work on their behalf.
Get a Review
If you are unsure whether your policy would respond, your Safe and Insured insurance broker would be happy to review your terms and provide advice to aid to ensure you have the correct protection in place.
Speak to the team today on 0808 161 7008 about what to look out for or what you may need.