Demolition insurance

As a demolition contractor, you understand the importance of forward planning that takes into account every possibility and ensures that you are never taken unaware by events – because you understand the possible outcomes, you can make the demolition go the way you want it to. It probably also feels like getting demolition insurance takes the same amount of planning, with you having to assess which risks your business is likely to face and which ones are not so likely. Obviously, the starting point will be those insurance elements which are required by law, and most clients will require you to have these in place before they’ll even consider awarding you a demolition contract. Combining public, employer and product liability cover into a general liability policy can be a good idea, giving you the security of knowing that you are covered for the work you are doing now and any future impact it may have. The cost will vary according to the type of work you do, how many employees you have and the company turnover, so be sure you are accurate when negotiating with your insurance broker. Generally speaking, you’ll be covered for a minimum of £5 million for your liabilities, and you can probably double that with government or local authority contracts who will stipulate a minimum level of cover. As for the optional items in the policy, the ones you include will often depend on the type of work you do and, unsurprisingly, the options are as varied as the work itself. There are clauses covering excavations or work done at height, asbestos clearance, pollution or other harmful substances, and just about anything else you can think of. Obviously, those might or not be relevant to your work so make sure you only add those which matter. There are a couple of other options which can form part of a demolition insurance policy, and should be considered regardless of the type of work your demolition company does. Tools and equipment are the main things to think about here as these are often items that can be expensive to replace, and they can be covered against loss, theft, damage or total loss on or off site as you require. As a final word, don’t be tempted to save time by buying a standard demolition insurance policy. It is by far better to get something that is tailor made to the work you are likely to be doing – just as every demolition company has a different set of risks, so should every policy. It might save you time to go for a standard package, but it probably won’t save you money and you will almost certainly be over-insured, covered for risks you just don’t face.