It’s no secret that construction is one of the most dangerous sectors for workers in the UK. Data from the Health and Safety Executive (HSE) shows that in 2022/2023, construction accounted for the second-highest rate of non-fatal workplace injuries.
Source: HSE
These risks are precisely why contractors need business insurance, providing much-needed protection against the liabilities and costs associated with accidents. Here’s a rundown of the top five reasons why getting insured is important, no matter the size of business you operate.
1. A Necessary Safety Net
The stakes in the construction industry are incredibly high, with injuries and ill-health now costing upwards of £16.2 billion per year in the UK alone.
This staggering figure underscores the financial risks that construction businesses and independent contractors face daily. From accidental property damage to on-site injuries, these are not just physical setbacks but financial burdens, too. Having business insurance in place acts as a crucial financial safety net. It ensures that these unforeseen and hefty expenses don’t derail your operations, allowing your business to recover and thrive even in the face of adversity.
2. Protection for SMEs
For independent contractors, navigating the construction industry can feel like walking a tightrope. That’s where specific insurance policies, such as public liability and professional indemnity, come in. They’re your financial shield against potential claims that could otherwise derail your operations..
3. A Seal of Trustworthiness
Having your insurance sorted sends a clear message to clients: you’re a professional who takes their business seriously. This gives potential clients the peace of mind knowing that you care about doing quality work and mitigating risks.
4. The Glue in Collaboration
Construction projects are a team sport, involving a cast of characters from subcontractors to suppliers. Business insurance acts as the glue that keeps these collaborations smooth and stress-free. It reassures everyone involved that, should things go awry, there’s always a plan in place to handle it, keeping the project on track without missing a beat.
5. Future-Proofing Your Business
In the end, having the right business insurance is about more than just navigating the present; it’s about safeguarding your future in the industry. It’s an investment in your business’s longevity, ensuring that you can weather the storms and keep building upwards, no matter the challenges.
Over to You
Whether you’re a big player or a solo contractor, business insurance is your armour in the unpredictable world of construction. It’s what keeps you in the game, building your reputation and securing your future project by project. So, before you lay another brick or draw up new plans, make sure your business insurance is locked, loaded and ready to go.
In line with the importance of robust insurance coverage, Veriforce CHAS, the leading authority in the UK for compliance and risk management, is excited to announce CHAS Protect — an exclusive business insurance product for contractors and tradespeople. Administered by Towergate Insurance, this initiative is specifically designed for CHAS members, offering a tailored insurance solution that underscores our commitment not only to enhancing member services but also to making the construction environment safer for all.
Author: Alex Minett
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Alex Minett is the Head of Global New Markets at Veriforce CHAS, the UK’s leading health and safety assessment scheme and provider of risk mitigation, compliance, and supply chain management services. With a working history in the audit and management consulting industry, Alex is experienced in implementing visions and strategies. Skilled in negotiation, management and business development, he is passionate about driving CHAS in its mission to safeguard organisations from risk in the UK.
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LinkedIn: Alex Minett