BHL established 1991 • JN is a chartered insurance broker, and MD/founder. Originally trained as a liability underwriter but broking Demolition & Construction risks last 30+ years • BHL clients are solely UK Mainland Demolition & Demolition related clientele, excepting a couple of historical accounts pre-dating BHL’s 1991 formation • Based in Essex operating countrywide • Active Associate NFDC members since BHL’s formation • Staff all long term – newest with us 8 years+
Full hands on personal approach insistent upon client pre-renewal meetings as an absolute minimum to ensure we keep up to date with developments – see many clients more often and available to all throughout the year • 24/7 access • Specialise in giving the best service possible, consistently throughout the year – including claims • Insurances are tailored to the individual clients – we don’t accept standard insurance wordings unless they are truly appropriate • Enough about us – advert over!
CDM is about responsibilities, working together and Health & Safety be it at pre-planning construction daily usage or demolition stages • Insurance is about funding/compensating when things go wrong • Without insurance business and dependant personal lifestyles are at risk
How much will an accident cost? • Insurance is of little interest to most – particularly the small print – until after the event! How crazy is that when you consider what you stand to lose • Insurance is not to be commoditised – there is no such thing as a fit all when considering Demolition &/or Construction projects
CDM defines key roles of Client, CDM Co-Ordinator, Designer, Principle Contractor & Contractor • My presentation assumes you are either a Principle Contractor or Contractor • On occasions you are likely to fullfil more than a single CDM roll ie Contractor, Designer and even Client
What is a CDM qualifying project? • 30 working days/500 person days • so where does the short term site clearance job fit in relation to your CDM responsibilities (eg) • HSE commented that “CDM2007 defines a ‘project’ as meaning a project which includes or intended to include construction work and includes all planning, design, management or other work involved in a project until the end of the construction phase” and for advise/ interpretation you will need to speak to your enforcing authority for health & safety • Withdrawing the requirement that all Demolition contracts be notified under CDM2007 could leave you and your client in breach
Most Contractors rely on their Employers & Public Liability insurances to protect their Businesses and personal lifestyles from liability to compensate for injury or damage to people or property following an accident • Traditionally Professional Indemnity insurance was felt unnecessary where the Contractor both designs and executes the risk assessments and method statements with his own or subcontracted labour
Increased professionalisation of the Demolition industry driven by public demand, legislation, codes of practise, and compounded by changes in policy wordings is beginning to raise questions if it is prudent for Contractors to continue without PI insurance in addition to EL/PL – particularly for larger more complex contracts • A properly arranged and understood EL/PL still goes a very long way to protecting your Business but recognise it’s limitations • EL basic cover • PL basic cover • PL advice limitations
PI basic cover and Claims Made basis • Fee charging for advice – T3 surveys/ Structural engineer schemes • Practise is changing often subtly – are you and your insurance broker/adviser aware – they need to know
CDM2007 place PI risk duties on PC, Designers, and CDM co-ordinator in particular • Materiality of PI risk to PC and Contractor RA/MS Designer is debateable given likely materiality to an accident by the same bodies executing the works but watch out for changes in PL wordings – get your broker to explain by example and in detail how underwriters expect to interpret their policy wording
This is not just about Liability insurance Contract Works, Own & Hired in Plant also relevant • Remember a standard Contract Works policy excludes loss or damage to original materials – value of this cover often, but not always, is negligible • What about increased costs of working to your contract works following an incident after you have taken possession?
Insist your broker sits down with you on key insurances and takes you through the full insurer submission and policy wording – boring yes but if you don’t it may cost you everything • Have your broker put in the insurance input – YOU put in the demolition input (and that means what actually happens on site)
On what basis was your EL/PL written – statement of fact/prop just as material throughout the year of insurance as the policy wording • Insurance is NOT to be commoditised – this cover in particular must be tailored to your needs personally • Many contractors claim not to understand insurance yet fail to use their brokers properly • A broker’s job is NOT just to secure cheapest price – his primary job is to arrange insurance that will protect both you and your Business – sadly many are failing
Hot works – lift steels & tired employee • Underground Services • Bona fide Subcontractors • Pollution (Bartoline v RSA) • Liability assumed under contract • BS6187 • Site inductions • Safety Policies • PPE……and much much more
Don’t wait until you have had a disaster before doing this eg • Policy wordings are rarely if ever set in stone – if they are chances are you’re with the wrong underwriters • DON’T WAIT UNTIL NEXT RENEWAL DO THE CHECKS NOW
Relying on your broker understanding how you operate your business can be dangerous – to you • Relying on the FSA is not likely to help you either in spite of FSA’s constant monitoring of brokers and insurers • Broker terms & conditions of business • I am not being sensational – prove it for yourselves before you get caught out
HSE prosecution cover re EL/PL • Where to draw the line on what insurances to take • EL/PL • 21.2.1 type PL • Performance Bonds • Contract Works • Own & Hired in Plant • Professional Indemnity • Directors & Officers Liability • Commercial Legal Expenses • Motor (hazardous locations & materials)
Insurance is just one of many risk management tools available to you to protect you & your’s – don’t be slow to consider minimising your risk exposures by other supplimentary options – your broker may also be able to assist you here
a useful exercise when reviewing any or all of your insurances is to have your broker highlight to you key limitation and restriction areas of your insurances in addition to areas which the broker given his understanding of your business remain significantly exposed (not just on the specific policy but overall)
& finally how are you preparing for 6th April 2008 when the Corporate Manslaughter & Corporate Homicide Act 2007 becomes operative – how will your insurances protect your Business and dependant family lifestyles?