What’s the point of Contractors Combined Insurance?

Contractors Combined – yet another oddly-named insurance (how on earth do these names catch on?) At Macbeth, we’re all about straight-talking insurance and advice. And part of that is about making things clearer and standing up to all the jargon. 

So if you’ve ever wondered “Do I really need contractors combined insurance?” or you’ve ever asked “what’s the point of Contractors Combined Insurance?” This blog will help.

What even is Contractors Combined Insurance?

First up, what even is Contractors Combined? And why does it have such an odd name? 

Contractors Combined is an all-in-one insurance policy that protects contractors and construction companies from the many specific and unusual risks involved in construction, engineering and maintenance.

It’s called ‘Combined’ because it’s a flexible insurance that ‘combines’ lots of different types of insurance. It gives you the cover you need to meet employment law as a contractor as well as going even further to protect your business. 

But ‘contractor’ covers a multitude of sins and industries. So what’s the meaning of contractor in the context of Contractors Combined?

What’s the definition of ‘contractor’ in contractors combined?

What we mean by contractor is actually a building contractor. Or in other words: any contractor working in the construction sector. This could be: formworkers, house builders, groundworkers, roofing contractors, scaffolding companies, civil and structural engineers, carpentry and joinery businesses, and mechanical and electrical contractors.

It’s also worth pointing out that Contractors Combined Insurance tends to be aimed at companies with staff (in-house or subcontractors) and plant machinery (owned or hire-in) rather than sole traders or self-employed trades.

So what’s the point of contractors combined?

Put simply, it gives you everything you need. In fact, if you’re in construction, there’s no reason you wouldn’t need Contractors Combined Insurance. And we’re not just saying that as an insurance broker, it really is the policy you need to protect your construction business both in terms of employment law and your contractual obligations. It includes the insurances you are required to have by law, and the insurances that you’ll need based on the terms of your contract. For example, if you’re a carpentry contractor working for a house builder, your contract will state, very specifically, that you must have certain types of insurance cover in place.

The good news is that most construction contractors that need it, DO have contractors insurance. The problem is that the insurance may not always be adequate. Underinsurance often happens when a contractor is trying to cut costs. And this could mean you don’t have the correct ‘contract works’ insurance. Or you and your employees may not be insured to work at the heights or depths required by the contract.

Where contractors insurance gets complicated

When there are lots of different contractors and subcontractors involved in a construction project, it can be tricky to work out who needs which type of insurance. You’ll need to consider what type of subcontracting you do and work out whether you need to provide the insurance or whether the subcontractor has their own insurance. You’ll no doubt have a process in place to review insurance requirements for each contract; but, if you don’t, or you’d like some help, we can help. We’re used to working out the lines of engagement with different subcontractors, identifying who is doing what, what contractual obligations you have and who is responsible for arranging insurance cover.

Are there any circumstances where I wouldn’t need contractors combined?

If you are a particularly big contractor and you have a very complex setup or project, there’s a chance that you may need separate insurance policies instead of an all-in-one policy.

What about Professional Indemnity Insurance?

Not every contractor needs Professional Indemnity Insurance, and not all contractor insurance policies include it. But if you’re a ‘design and construct’ contractor, you will need Professional Indemnity Insurance to cover compensation claims as a result of negligent advice or services. The good news is that this can easily be added to a Contractors Combined policy. Not sure if you need it or not? We’ll ask you the right questions to find out if you need it or not. 

So what now?

If you’d like to feel more confident about your contractors insurance, or, if you have separate polices and like the sound of an all-in-one policy, pop in and see us or give us a call and we can advise and give you options.   

And, if you’ve just won a new contract (well done!) and you want to outsource the headache of working out all the dotted lines of insurance, we can help with that too. 

Oh, and did we mention using a broker means you’ll also get the best possible price because we have access to the whole insurance market.

Want to double (or triple) check you have the right insurance for your contract? 

Email Barry or give us a call on: 0118 916 5480