Civil Contractor's Guide on Getting the Best Insurance Policy

Insurance Blog

As a civil contractor, you're responsible for all the work that goes on at your construction sites. While you may take all appropriate steps required to ensure work flows smoothly and safely, accidents, injuries and property damage may still happen. For this reason, it is essential to prepare for the unexpected by managing the exposures you face with the right insurance.  

Civil contracting insurance is not a 'one-size-fits-all' product. No two situations are the same, so you should aim to acquire insurance that is tailored to match your specific needs. With that said, here's what you should consider in order to ensure you get the best policy for your everyday operations.

Assess and prioritise your risk exposures.

Your risk exposures determine your insurance needs, so the first and most important thing you will need to do before taking out civil contracting insurance is to identify and assess the risks you face every day. Risk exposures usually vary from contractor to contractor, so it is important to prioritise the risks you're most likely to face.

Risk exposures are typically classified by risk type. Some of the common types of risks that you may encounter include:

• technical risks (such as failure of critical equipment and fire accidents)
• environmental risks (such as natural calamities and weather-related business interruption) 
• financial risks (fluctuation in foreign exchange rates and increased local taxes)
• logistical risks (breakdown of vehicles and lack of spare parts required to repair broken-down vehicles)
• socio-political risks (such as hostility by local communities and an unfavourable political environment)

The risks can also be management-related, such as reduced employee productivity. It is important to periodically review your risk assessments and priorities because the risks you face may change down the line.

Check what various insurance companies are offering.

There are various contracting insurance companies out there. When you are looking for civil contracting insurance, narrow down your search to companies that are experts in your specific field. These specialists will review your risk exposures and tell you the best insurance for your business at a competitive rate.

Different insurance providers offer different policies and premiums. Keep in mind that the cheapest policy is not always the best option, as it may not provide enough coverage for your business. If you need help choosing the best insurance policy for your civil construction business, look for an insurance agent you trust and let them guide you through the process of getting the most out of your insurance policy.

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15 October 2018