FEATURES 23 consequences on site . Where the contractor or one of the staff are found to be negligent resulting in the death of or injury to third parties or damage to third party property , a Contractors Liability policy will provide assistance with legal defence and payment to the third party .
“ Contractors Liability cover on site is typically taken out with an engineering specialist insurer ,” says Hawkins , “ General Liability Cover is typically taken out with a commercial insurer . Directors and Officers Liability is typically taken out with a Specialist Financial Liability Insurer . As these various types of liability differ in nature , individual specialist insurers offer product specific in nature .”
What about tools and vehicles ? Vehicles such as cars or bakkies can be insured on a commercial policy . Smaller tools can also fall under the commercial policy on an all-risks basis . Larger plant items – like tipper trucks and larger type mechanical plant and equipment – can be insured on a contractors ’ plant policy . Hired plant can also be covered . Trucks would also fall under the plant policy , depending on the size of the vehicle .
On site
• Contractor ’ s All-Risk Blanket Policy
• Contractor ’ s Liability Policy
• Contractor ’ s Plant Policy
A common mistake we make is to stumble blindly into the world of insurance and not have much idea of what we need or how to go about assessing our needs . Hawkins advises that the best thing any business can do , before taking out insurance , is to sit down with an experienced broker to talk about risks and needs – especially if it ’ s a new business .
“ Business owners are advised to continually stay in contact with the insurer or broker as risks and conditions change over time ,” Hawkins says . “ Tender documents , for example , may also have specific insurance conditions like who the insured parties must be and also what minimum limits of indemnity are to apply and so on .”
Setting up a business is more than just getting a set of tools and setting off into the world to perform plumbing . There are so many other considerations and insurance is one of them , and one that could often be overlooked in favour of other expenses . However , this is a significant part of not just running your business , but making sure that you are covered for whatever eventuality may arise .
For your business
• Key Person Policy
• Commercial / Business insurance policy
• Vehicle ( business )
• Tools and equipment
• Any stock items
• PPE
Hawkins offers a final piece of advice : “ The main pitfall for the plumber is not discussing all the risks with an experienced and licensed broker . Also , it ’ s important for plumbers to keep an eye on the tender condition insurance details .”
Key Person Policy A Key Person Policy is typically issued by a Life Insurance Company and purchased by the contractor to provide financial assistance to the company while a key company employee has either passed away or become disabled as a result of Illness or Accident . Let ’ s break down what you will need and where :
“ A common mistake is stumbling blindly into insurance .”
For yourself
• Income protection
• Life insurance
• Funeral policy / plan
• Disability / Critical illness plan PA
October 2024 Volume 30 I Number 8 www . plumbingafrica . co . za