This scenario is the most frequent in the Contractors All Risks sector and the result is usually that the client gets the minimum cover under the policy, ultimately leading to a situation in the event of a claim where disputes can arise concerning the insurance cover and the need to appoint experts to prepare special reports in an attempt to obtain compensation.
In this scenario, the insurance agent acts purely as a post box, sending the insurance company’s survey to the contractor to be signed. The result is that numerous exclusions and protection warranties appear in the survey report, in other words – the insurance cover is basic and quite often less than basic, and there are several reasons why things operate in this manner:
1. In this scenario, the powers that be are not acting in your best interests to deal with the demands and recommendations in the insurance company surveys. In many situations the insurance agent is not sufficiently experienced in dealing with the construction industry, let alone with the diverse range of insurance covers – and these are basic prerequisites to handling this class of business professionally.
2. Devising any type of Contractors All Risks insurance policy involves intensive work! The process is intricate and demanding, demands a high level of concentration, long work hours, managing a team of professionals, experts, commissioning and addressing expert reports, conducting construction site visits and holding meetings to formulate a policy with the wides insurance cover after conducting in-depth work.
3. Since most insurance agents deal with all types of insurance (motor, home, life and more); from an objective point of view they cannot be experts in handling Contractors All Risks policies, or dealing with insurance experts, engineers, surveyors and others involved in the construction industry to provide the client with the optimal and most professional support.