How can contractors protect themselves against storm damage?

Between September 2023 – January 2024, there were 10 UK storms officially recorded by the Met Office. With 1,000 homes damaged by Storm Isha alone, it is more important than ever to have the relevant insurance. But it’s not just homeowners that are affected by extreme weather; those in the construction industry must also protect themselves and their projects from any damage that Mother Nature might cause. Not only do contractors need to consider insurance; they must also pay close attention to the contracts they sign.

Contracts

There are many factors to take into account if a construction site has been damaged by a storm. The first thing to check is – what does the contract say?

Most standard construction contracts allow for a deadline extension under certain circumstances, with extreme weather being one. Some may also cover the additional costs incurred by the delay and damage. It is therefore advisable to check and negotiate these clauses at the start of the job, rather than waiting until damage is done. It is also wise to agree on definitions of words or terms that could be up for debate – for example, what is a storm? What weather conditions are considered extreme? And what is a force majeure? Putting this in writing as early as possible will minimise the chances of any contractual disputes arising further down the line.

Insurance

Having the right cover serves as vital protection against the elements out of our control. If the policy is appropriate for the project, insurers are likely to help with the costs of repairs. However, proof of damage is needed, so it is vital that contractors contact their provider as soon as possible. It is also advisable to keep pictures as evidence and only move items if they are a health and safety risk.

Mitigating risks

If a storm is forecast, contractors should ensure the construction site is left in a state that minimises any risk of damage. For example, materials that could blow away should be moved. Similarly, nothing should be left out that would be rendered unusable if flooded with rainwater. If an insurer deems any damage to have been preventable, the claim may not be paid. Scaffolding must also be carefully erected; if not, the contractor could be liable to a public liability claim.

Buildings to weather the storm

The impact of storms on the construction industry does not just extend to contract clauses and insurance policies. With extreme weather becoming increasingly common due to climate change, the ABI has urged planners and builders to “ensure new developments are built to withstand increasing windspeeds”. In the future, we may therefore see more buildings that are wind resistant by design in order to reduce the distress and damage that is caused.

Here to help

Focus can help brokers to insure their clients against extreme weather damage. For assistance in sourcing the appropriate cover, please do get in touch on 0345 345 4511 or email sales@focus-insurance.com.