Fortunetwork Member & Scotland’s Top Insurance broker CIS issues warnings

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Scotland's top insurance broker, Central Insurance Services, has warned principal contractors to conduct thorough and regular checks of their subcontractor insurances, following a spate of uninsured claims.

Scotland’s top insurance broker, Central Insurance Services, has warned principal contractors to conduct thorough and regular checks of their subcontractor insurances, following a spate of uninsured claims. Scott Campbell, Account Director at Central, highlighted that many contractors will check their subcontractors’ insurance renewal date and liability limits, but not delve deeper into policy conditions, warranties and exclusions. “This opens up a serious exposure to the principal’s own liability. Many of the policies in force carry onerous conditions, such as heat work requirements, working at height and depth limitations, and inner limits of liability.” In addition, the business description should always be representative of the work being carried out “If a roofer is involved in scaffolding work and it’s not noted on their description of activities, again they are inviting the insurer to repudiate cover.”

Right now, due to economic pressures and an increasing claims culture, insurers are scrutinising every single claim and will want to check policy requirements are being adhered to, to minimise their own losses.

It is also important to check the insurances on an annual basis, in line with the individual subcontractor’s renewal date. Scott says “it is not enough to check all the subcontractor insurances at one given point in the year - these must be analysed individually to ensure there is no time-gap in known cover. We regularly check subcontractors as a matter of course for our principal contractor clients - it is something that all brokers should be doing as part of their core service offering.”

        Scott Campbell
       
    M: 07972 144 821
  Central Insurance Services