Emerging risks in construction

Risk management in construction is a constantly evolving landscape; the industry is navigating a changing economic climate whilst attempting to digitalise and work towards the UK’s net-zero target. Read on to find out the key priorities that are currently on the minds of insurers, brokers and policyholders alike.

Sustainability

With an increasing proportion of the UK population going green, attention has turned to the safety of renewable energy sources. In fact, the safe integration of electrical vehicle (EV) charging infrastructure was identified as the top risk in RiskStop’s report, as 18% more battery-electric cars were registered in 2023 than in the previous year. The safety and reliability of solar panels was cited as a key focus, too.

Commenting on the uptick in sustainable practices, HSB observed that ‘demand for construction insurance could grow due to the heightened focus on environmental considerations. Businesses should assess whether they need specialist coverage to manage construction-related risks associated with sustainable initiatives.’

Increased costs

As many will know all too well, rising costs have put contractors under great financial strain. This is due to fluctuating interest rates, higher labour and materials costs, plus ongoing geopolitical tensions affecting the supply chain. As a result, it is estimated that over half of small- and medium-sized enterprises (SMEs) in the construction sector are using credit to help pay for their insurance premiums. Since costs have fluctuated in recent years, it is important that contractors check that they have the right level of cover in place, to ensure they would be sufficiently protected in the event of a claim.

Theft

The cost of living crisis has not just caused construction costs to rise – it has also prompted an increase in theft. To help reduce the impact this has on businesses, the Equipment Theft (Prevention) Bill 2023 was introduced, aiming to prevent the re-sale of equipment. But this alone is not sufficient; having appropriate insurance in place is vital protection, otherwise the financial impact of theft could be devastating.

Compliance with legislations

There are a range of safety regulations to comply with, and it’s vital to stay up to date with any legal changes. In RiskStop’s report, they highlighted the importance of consistently adhering to fire safety rules, so contractors are prepared for visits from Fire Safety Inspection Officers. Plus, it’s essential to understand the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR), which requires all employers to keep records of all work-related injuries.

Talk to us

Insurance should be a priority expense for contractors. Focus can help brokers source the most appropriate cover for their construction clients. Please get in touch on 0345 345 4511 or email sales@focus-insurance.com.