Ever since the start of the pandemic, supply issues have dogged the construction industry.
An inability to meet global demand for a number of building mate
rials, such as timber, steel and cement, has been amplified in the UK by a well-documented shortage of HGV drivers to transport the materials.
The reopening of retail outlets in the last few months has only spread more thinly the limited number of drivers.
Add in the impact of Brexit creating new delays at the border for checks on foreign imports, and it seems accurate to describe this as a ‘perfect storm’ of supply shortages for construction firms.
But when an industry undergoes a crisis such as this, it is an opportunity for every insurance broker to really prove their value.
One of the most damaging impacts of supply shortage is when it causes firms to miss contracted completion deadlines.
Brokers should be reminding their clients of insurance covers they can put in place to protect them against such losses, for example Delayed Start Up Costs protection.
Insurers will usually want to know why this add-on is required, and so the broker should be communicating as much information about the project as possible.
Going the extra mile and giving details about the materials being used, and the various supply lines, can pay dividends, and potentially secure a client better terms.
But this is not the only way brokers can prove their worth in this current market.
There has been a sharp rise in vacancies within the construction sector, and insurers are paying close attention to who they are underwriting.
Hiring unqualified workers to fill these gaps is a big no-no. Providing evidence that the whole workforce operating on a single project are experienced and qualified is what the underwriters like to see, and significantly reduces their exposures.
Discovering these key pieces of information can go a long way to securing all the protection required for a single construction project on good terms.
Complementing this by detailing clear timeflow charts and planned handover periods can ensure the client is not overinsured, and paying for exposures they no longer have.
Accurately identifying all a project’s most pertinent risk exposures in this way can be what distinguishes the best insurance brokers.
Consilium generally looks to place single construction projects of at least £10m in value with our panel of specialist insurance carriers, although we can take on smaller projects to assist supporting brokers.
Projects we place are up to three years in length, although can be extended.
Start a discussion with our Head of Specialist Risks, Andy Graham, to discover how we can assist in placing your single construction project risk.
Head of Specialist Risks
Tel: 0208 103 7200
Mob: 07423 677 046