What Insurance Do I Need For My Irish Construction Company ?

What Insurance do I need for my Irish Construction Company ?



One of the most common questions that contractors ask is

‘What Insurance do I need for my Construction Company?’ There are a number of aspects to Construction Insurance however the main areas are: Public Liability Insurance Employers Liability Insurance Accident Insurance Contractors All Risks Machinery & Plant Insurance Contract/Performance Bonds Why is Public & Employers Liability Insurance so Important for Irish Contractors? For the Construction Industry,Public Liability Insurance in today’s litigious society is more important than ever. As a construction contractor, it is essential that your business holds Public & Employers Liability Insurance as your business activities mean that you can be sued by the public or your employees for your negligence. Although the ‘claims culture’ in Ireland is not as rampant as in the USA or the UK, more and more people, instead of accepting that loss or damage can happen by accident, are encouraged to believe that it must have been through someone’s negligence – with the result that they sue hence the need for Public & Employers Liability Insurance. In particular, the arrival & growth of ‘no-win no-fee’ agreements and legal expenses cover has meant that access to the courts has never been easier. This ease of access, together with the perception that judges will award compensation in virtually every case has resulted in the growth of Public Liability & Employers Liability claims in the last decade. In 2006, 18 were Employers Liability claims. The Personal Injuries Assessment Board along with the Irish Insurance Federation’s anti fraud hotline ‘Insurance Confidential’ have met with significant success since their establishment in 2003 however Insurance Fraud is still a major problem in Ireland and recent figures suggest that as much as 100M per annum is paid to fraudulent/suspect claims. In recent times Public Liability Insurance costs have reduced to levels not previously seen since the last millennium and the premiums currently available to contractors mean that Public Liability Insurance is now more affordable than ever. Should I have Personal Accident Insurance? Personal Accident Insurance is also highly recommended for a sole traders, business partners and company directors as a combined liability policy does not cover any injury caused to a sole trader/business partner while it is extremely difficult for a company director to sue his/her own company. We can tailor a policy to your exact needs and our policies include a tax free monthly benefit, a lump sum [capital benefit] and hospital cash. Consider the following examples where Personal Accident Insurance will provide cover: You’re a self employed carpenter with no employees. You cut your hand and are unable to work for eight months. As you have Personal Accident cover you receive a tax free benefit of 1,500 after one month and continue to receive this amount until you return to work. Although Personal Accident/Income Protection insurance is no substitute for full time earnings it will provide you with an income if you are unable to earn and it will reduce your financial worries at a time when your recovery should be your number one priority. Do I need Contractors All Risks Insurance? Contractors All Risks Insurance (also known as Contract Works Insurance) is an insurance policy specially designed for builders/developers and can also be made available to certain occupations such as Plant Hire Contractors. Contractors All Risks Insurance can include cover for contract works, own plant, hired-in plant and employee’s tools. The main part of the contractors all risks insurance is the contract works section which provides cover for the property being worked on (e.g. new house, etc.). However, cover for the existing property is excluded (e.g. the existing structure when building an extension) and must continue to be insured under its own insurance cover. Consider the following examples where Contractors All Risks Insurance will provide cover: You are a building contractor and are building a house for resale. So far you have spent 200,000 on materials and labour. The property catches fire and is destroyed before it has been completed. You are groundwork’s contractor and are presently digging foundations for a new housing development. Naturally you leave your excavator on site until the contract is completed however one night your excavator is stolen. How do I insure my Machinery? Normally a contractor insures his machinery & plant for ‘Accidental Damage Fire & Theft’ which is also known as ‘Engineering Insurance’ although it is also common for a contractor to insure machinery & plant under Contractors All Risks Insurance. Under an ‘Engineering’ policy the machinery is covered for fire, theft & accidental damage while an inspection can also be provided [Some items require an Inspection every 14 Months]. For further information please visit Keystone Ireland’s premier supplier of Construction Insurance & Pension Planning to the Irish Construction Industry. Public Liability InsuranceEmployers Liability InsuranceConstruction Insurance

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