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6 Things about insurance you are too afraid to ask.

I know in the world we live in, things change on a daily basis and I am sure everyone is aware that so does your insurance.
Do you really know what you are covered for? Are you paying too much for your Insurance? And my ultimate favourite are you over or under covered?

When searching for affordable insurance you need to ask the most important questions that you might be too afraid to ask as you may think that it is not relevant or the insurer is on top of it.

Let’s have a look at the top questions that you should be asking when looking for insurance or even query with your current insurer so you are not left in the dark when you need it the most.

• What type of insurance do I need to cover me?

When sitting with your financial advisor it is always important to dive into as many questions as possible in order to get the satisfied outcome you desire.
You need to know exactly what insurance will be best for your company and will allow for you to have peace of mind that all your assets/labour are covered in any event.
Not getting the right policy might put you in a position where you will have to personally cover an accident/theft.
Present all your assets/labour to your financial advisor so they are aware of exactly what you need and let them draw up a policy that will be best suited for you.

Do not take any insurance out on a whim!!

• Do you know the Insurance Company you are buying from?

It is always good to know the insurance company’s competitors within the industry so you know the type of quality you will get from them.
Find out a bit more from the insurance company, small things might make your decision a bit easier or deter you from the company completely.
Know how they will treat you, you do not want to find out about your insurance company after it is too late and you have already spent unnecessary costs on cover with a company that did not meet your expectations.

• After sale service?

Always find out from your financial advisor if they have after sales service and what they do to keep a customer happy. After sale service is very important and can help you become a long standing client and remain happy with the Insurance Company you are with. You as a customer need to know who your contact person is and if you come across any issues they will be handled professionally and on time.

Bad service = unhappy client (You do not want to get yourself in that position)

• Fine print and cost?

Of course this will also be the breaking point for you as a potential client. You need to ensure you know all costs involved in taking out your insurance, you do not want to sign and give the go ahead and when payment is made it is not what you expected. Ending up paying for “Hidden Costs” will not help if you as a company have a certain budget and thought you were paying a certain amount but in reality that is not the case.
Always read your Ts & Cs!!

• What does your financial advisor gain from you taking out insurance?

This question is one that people stay away from mostly, you do not want to ask a personal question to your financial advisor about what he takes home from your deal. But it is something you as a client can find out, paying too much can be a result of how much your financial advisor is making it is always great to have that open communication as you are in this together.

Negotiation is the key to seal the deal!!

• Over Insured?

You as a potential client do not want to end up paying for insurance that you do not need. It does not necessarily mean you will never need it, but right now do you need to be over covered?
This is why the policy needs to suit your current position and focus on important things that you need assistance with.
Ensure you ask your financial advisor or insurance company to send you a breakdown of exactly what you are covered for so you are able to tweak what you need to ensure you know you are paying for exactly what you need.

To view more articles, please visit the Leads 2 Business Blog.
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About Ashlee Hennessy

I am Ashlee Kelly and I have been with Leads 2 Business for a year and 3 months. Although new to the Company I have been in the construction industry for 4 Years. My passion is working with clients and ensuring that they grow their business in the right direction by getting involved in projects and tenders we can offer. I am a very out-going person with many characteristics, and love to help when a client needs any assistance.

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Contractors, Ensure You’re Insured!

Accidents, theft, negligence… the list goes on. All of these events could cost you dearly and insurance has become somewhat of a necessity in protecting companies and individuals from the harsh financial implications.
I have spent the past few days studying the various construction-related insurance products that are on offer from the many insurance companies in South Africa, as well as some of the scenarios where insurance could come into play.

Sadly, many injuries and deaths have occurred on construction sites and it is so important that contractors have insurance to cover for these unfortunate events. In one incident in South Africa this year, construction workers were hospitalised after formwork collapsed on them. In a separate incident, in 2017, a construction worker died after falling from scaffolding. Where loss, damage, injury or death has occurred as a result of a structural collapse or any other type of works failure on site, the insurer is likely to determine whether or not the structure or construction works complied with the National Building Regulations (NBR). South Africa’s National Building Regulations are a set of guidelines for construction. Failing compliance, insurance claims could be rejected.

Theft of construction equipment and machinery; damage caused by strike action, riots and violent protests as well as machinery breakdown are other examples of risks that contractors are facing. Thankfully, all of these events can be covered by insurance.

Read on to learn about a few of the insurance options that offer cover against the above-mentioned incidents.

Contractors All Risk (CAR) Insurance
CAR policies cover construction companies against loss or damage caused by fire, seasonal risks, natural disasters, vandalism, theft, liability and other possible incidents, depending on the cover that your preferred insurer offers you. It is important to note that not all CAR policies offer the same amount of cover. The duration of the cover commences at the start of the construction works and ceases when the contract is complete.

Public Liability Insurance
Public Liability Insurance can be included in CAR policies or taken out as a policy on its own, and covers against death or injuries to third parties as well as damage to the property of third parties. The main contractor assumes liability for activities carried out on site by any representatives of his company.

Plant All Risks (PAR) Insurance
This type of insurance is also referred to as Contractors’ Plant and Machinery (CPM) insurance and Contractors’ Plant and Equipment (CPE) insurance and covers construction plant, machinery and equipment against loss or damage caused by unforeseen circumstances. A CAR policy can cover plant, however, specific types of plant are only used for a small portion of the total construction period and are then moved to another site. PAR insurance would be a more suitable type of cover for these specific machines, in comparison to CAR insurance. Often, contractors will opt for a PAR policy that can be renewed on an annual basis, covering the various plant that is in operation on different sites during the course of the year.

Machinery Breakdown Insurance
Contractors can insure against unexpected mechanical and/or electrical breakdown of machinery. Under this type of cover, claims cannot be submitted for any expected breakdown arising from general maintenance requirements.

Special Risk Insurance
The South African Special Risks Insurance Association (Sasria SOC Ltd) is a state-owned entity offering short-term insurance and provides cover against loss or damage caused by violent protests, riots, terrorism and similar circumstances. SASRIA cover can only be arranged by a broker.

The aforementioned insurance policies are most-certainly not the only options that contractors have, as there are many other policies that can be taken out. That being said, contractors have a range of options to choose from in order to protect their companies and assets by ensuring they have the necessary insurance policies in place. Contacting a broker who specialises in construction insurance could pave the way for hassle-free insurance claims, should the need for a claim arise.

To view more articles, please visit the Leads 2 Business Blog.
If you are interested in becoming one of our subscribers, please visit Leads 2 Business.
To view notes with screenshots on how to use our website, please visit the Leads 2 Business Wiki.

Sources:
CivilSure
Carl Greaves Brokers
RBS
Master Builders Insurance

About Bianca Warwick

I had the privilege of joining the Leads 2 Business content team in January 2012. I work in the exciting Projects department, following the progress of construction developments in KwaZulu-Natal and the Free State.

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Common causes of Construction delays.

What is a construction delay? Well in lamens terms anything that prevents a site from moving forward is a delay.

There are many different causes of construction delays However many of them can be prevented.

Weather, well we all might be thinking that we cannot control the weather, which is 100% correct, however one can watch the weather forecasts closely and plan ahead as far as possible.
There are many reliable weather sites available to us now days, so one should make use of them and plan accordingly IE one cannot lay roof sheets if you are expecting gale force winds, and you cannot pour concrete when it is raining.

There is however an old saying in the industry “ rain before 7 clears by 11” not too sure how true this is but it’s something I have heard many times before.

• Insufficient funding, Oh yes MONEY can make or break a site. If the budget is not sufficient enough then this can have an enormous impact on the project, or if funding is not adequately released during the correct phases of the project then this too can have a huge impact, as this impacts delivery of goods, wage payments etc.
• Decision making, Yip you heard right, if the Client cannot make up their mind during the project then this will cause serious delays, as well as if the client is changing their mind constantly, as the contractor and their subbies must now sit and wait for the final decision because if the contractor make his own decision then the client might not pay.
• Poor Coordination. Now I am sure that we have all heard contractors blaming subbies and subbies blaming contractors , however it boils down to poor coordination / Time planning, if a contractor does not order their materials timeously the manufacturer cannot produce it on time , causing delays. If the Subcontractor or manufacturer does not plan ahead, and manage their own production correctly this too will cause delays.
• Unskilled labour, Many people think it’s quite easy to lay bricks, or to tile, piping etc. when in actual fact if you do not know what it is that you are doing it will cost the site time and money to break done what has been done in order to fix it if it has not been done correctly leading in the obvious Time delays.
• Incorrect designs, Yes designs…. If the professional consultant has not done all the correct designs, just a simple error can cost a huge time delay on site to try and correct or amend to make the design work again…
• Then there is the ever popular Labour issue which is so common in South Africa. If you’re Labourers or SMME’s are not in agreement with regards to rates or wages, they often shut down an entire site and no further construction will commence until the dispute has been resolved.
• Community related issues, this can cause huge delays , especially if there has not been a community buy in on the project, because the project is been done within their community, it needs to be of benefit to them, and if they do not feel it is for the better of them, they will be stopping the project as well.

This leaves me to the conclusion that it’s definitely quite a stressful job being in the construction industry as everything needs to run like a well-oiled machine.

PLAN, PLAN, PLAN!

To view more articles, please visit the Leads 2 Business Blog.
If you are interested in becoming one of our subscribers, please visit Leads 2 Business.
To view notes with screenshots on how to use our website, please visit the Leads 2 Business Wiki.

About Jennifer Ellis

I Started working with Leads 2 Business in 2007 and been based in Port Elizabeth as a Senior account Executive. I oversee the Subscriber base in the Port Elizabeth and surrounds region as well as some National subscribers.

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