The Importance of Construction and Engineering Insurance for Independent Firms
In recent months, the construction industry in the UK has experienced huge growth, and alongside a boom in manufacturing this has triggered a widespread economic recovery. Business owners in the sector will have been concerned to learn that this growth has stalled in the last month, as construction expanded at its slowest pace in more than a year. The Markit / CIPS construction PMI tumbled from 61.4 in October to just 59.4 by the end of November, and experts fear that this could mark a significant period of decline.
Like many industries, construction and engineering is heavily influenced directly by government decisions and actions. In the UK, some construction companies found that uncertainties ahead of next year’s general election have impacted people’s commitment to long term projects. This obviously has a big impact on construction as any project is a big investment, both in terms of finance and time.
3 Reasons why you should invest in Construction or Engineering Insurance
With this in mind, the level of competition between independent construction and engineering firms is likely to become even more intense. This means that companies must be proactive and detailed when creating tenders and completing work, especially when it comes to sourcing relevant insurance. Consider the following benefits to this: –
1. Winning New Business
Without viable insurance from a company such as, www.catlin.com, it is almost impossible to secure new work and convince potential partners of your quality or attention to detail. This is crucial in a complex and detailed industry such as construction, where even the smallest error or miscalculation can have significant financial implications. By investing in long-term coverage and adapting policies to suit individual projects and work types, you can showcase your diligence as a firm and gain a critical edge in a competitive marketplace.
International projects can greatly benefit your company; however, these need careful planning. Along with bespoke construction differences between countries and cultures, insurance varies dramatically internationally. Just because you’re covered in UK, it may be a different story for China, India or Russia. Making sure you’re prepared for this before any opportunities arise will mean you appear a lot more professional when they do.
2. Manage your Long-term Operation Costs
Your long-term operational costs included everything from labour to materials, and a higher level of detail enables you to create and manage your budget more effectively. So whether you are attending to your firm’s overall public liability or organising coverage to suit an individual project, the process of comparing the market and purchasing insurance can deliver a more detailed overview of your financial circumstances. On a final note, this also ensures all future profit and turnover forecasts are accurate.
3. Protect your Business in the Event of Human Error or Misadventure
Arguably the most obvious benefit of purchasing insurance is the fact that it can protect in the event of human error or misadventure. This protection is primarily financial, whether an employee is injured throughout the course of their work or there are complications with regards to specific projects. So long as you pay careful attention to the individual needs of each project and invest in comprehensive coverage that covers these, you can create a safety net that protects your investment and business reputation.
The construction industry is diverse and unique and this should be reflected in your business approach. Taking a more general attitude towards projects could lead to misunderstanding and complications. The most successful construction and engineering companies will provide very bespoke projects to meet specific needs. Getting the right insurance for these needs is only the start to ensure you deliver a successful construction campaign.