BUSINESS SUPPORT XXXXXXX YOUR FMB INSURANCE FOR WINNING MORE WORK
Having the right level of protection has become a critical business requirement for winning more work, says Jade Alger of FMB Insurance STRONGER COVER, STRONGER BIDS
I n today’s construction market, being underinsured is a significant risk that could cost you contracts, delay project starts and undermine client trust. Insurance levels now influence whether or not you will win work. With rising operating costs, many contractors look for places to cut expenses, and insurance can seem like an easy area to trim. But the impact of underinsurance has widened dramatically. Clients, architects, surveyors, lenders and even domestic homeowners are scrutinising contractors’ policies before approving work. If your cover doesn’t meet their needs, you’re likely to be rejected from tenders or prevented from stepping on site. It’s no longer a hidden issue – inadequate cover is visible, checkable and a common reason why builders lose out on projects. Higher expectations Contemporary construction contracts place clear and often elevated requirements on insurance. This includes public liability, contract works values, professional indemnity and structural warranty provisions.
Falling short can lead to: ● removal from tender lists;
● identify gaps that could cause contractual or financial issues; ● meet requirements set by clients, architects, lenders or warranty providers; ● access insurers who understand challenges faced by builders; and ● secure competitive premiums without compromising essential protection. FMB Insurance keeps builders compliant, credible and ready to take on new projects with confidence. Better cover, resilient business With clients expecting more and marketplace competition intensifying, underinsurance is a risk that no builder can afford to take. The right cover protects your business, strengthens your tender submissions and safeguards your reputation. FMB Insurance on call to to help your business stay protected, competitive, and contract-ready.
● postponed project start dates; ● breach of contractual terms; ● warranties being invalidated; ● loss of client confidence; and ● disputes with architects, lenders, or building control. Even private clients carrying out sizeable home improvements are more alert to what “proper cover” looks like. Financial consequences If a claim arises and the sums you insured are too low, insurers may: ● apply the average clause, reducing your payout proportionally; or ● refuse the claim if values or material facts weren’t disclosed accurately. With fluctuating material and labour costs, many builders underestimate the values they need to insure. A shortfall can escalate from an inconvenience to a business-threatening financial exposure. Construction insurance is complex and requirements can vary widely between projects. Many contractors end up underinsured, not due to negligence, but because they aren’t aware of policy nuances, valuation expectations or contract- specific wording. This is where FMB Insurance supports members, by helping them: ● accurately assess
How do I find out more?
FMB Insurance can manage all of your business protection needs, delivering the right policies for the right situations. Insurance and
warranty products include contract works insurance, public and employers’ liability insurance, building work guarantees, unoccupied property insurance, and more. Contact 01353 652 760 or insurance@fmb.org.uk .
the level of cover needed based on the nature and value of their work;
www.fmb.org.uk
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Master Builder
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