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CDM and Insurance

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CDM and Insurance BHL established 1991 JN is a chartered insurance broker, and MD/founder. Originally trained as a liability underwriter but broking Demolition ... – PowerPoint PPT presentation

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Title: CDM and Insurance


1
CDM and Insurance
2
  • BHL established 1991
  • JN is a chartered insurance broker, and
    MD/founder. Originally trained as a liability
    underwriter but broking Demolition Construction
    risks last 30 years
  • BHL clients are solely UK Mainland Demolition
    Demolition related clientele, excepting a couple
    of historical accounts pre-dating BHLs 1991
    formation
  • Based in Essex operating countrywide
  • Active Associate NFDC members since BHLs
    formation
  • Staff all long term newest with us 8 years

3
  • Full hands on personal approach insistent upon
    client pre-renewal meetings as an absolute
    minimum to ensure we keep up to date with
    developments see many clients more often and
    available to all throughout the year
  • 24/7 access
  • Specialise in giving the best service possible,
    consistently throughout the year including
    claims
  • Insurances are tailored to the individual clients
    we dont accept standard insurance wordings
    unless they are truly appropriate
  • Enough about us advert over!

4
  • CDM is about responsibilities, working together
    and Health Safety be it at pre-planning
    construction daily usage or demolition stages
  • Insurance is about funding/compensating when
    things go wrong
  • Without insurance business and dependant personal
    lifestyles are at risk

5
  • How much will an accident cost?
  • Insurance is of little interest to most
    particularly the small print until after the
    event! How crazy is that when you consider what
    you stand to lose
  • Insurance is not to be commoditised there is no
    such thing as a fit all when considering
    Demolition /or Construction projects

6
  • CDM defines key roles of Client, CDM
    Co-Ordinator, Designer, Principle Contractor
    Contractor
  • My presentation assumes you are either a
    Principle Contractor or Contractor
  • On occasions you are likely to fullfil more than
    a single CDM roll ie Contractor, Designer and
    even Client

7
  • What is a CDM qualifying project?
  • 30 working days/500 person days
  • so where does the short term site clearance job
    fit in relation to your CDM responsibilities (eg)
  • HSE commented that CDM2007 defines a project
    as meaning a project which includes or intended
    to include construction work and includes all
    planning, design, management or other work
    involved in a project until the end of the
    construction phase and for advise/
    interpretation you will need to speak to your
    enforcing authority for health safety
  • Withdrawing the requirement that all Demolition
    contracts be notified under CDM2007 could leave
    you and your client in breach

8
  • Most Contractors rely on their Employers Public
    Liability insurances to protect their Businesses
    and personal lifestyles from liability to
    compensate for injury or damage to people or
    property following an accident
  • Traditionally Professional Indemnity insurance
    was felt unnecessary where the Contractor both
    designs and executes the risk assessments and
    method statements with his own or subcontracted
    labour

9
  • Increased professionalisation of the Demolition
    industry driven by public demand, legislation,
    codes of practise, and compounded by changes in
    policy wordings is beginning to raise questions
    if it is prudent for Contractors to continue
    without PI insurance in addition to EL/PL
    particularly for larger more complex contracts
  • A properly arranged and understood EL/PL still
    goes a very long way to protecting your Business
    but recognise its limitations
  • EL basic cover
  • PL basic cover
  • PL advice limitations

10
  • PI basic cover and Claims Made basis
  • Fee charging for advice T3 surveys/ Structural
    engineer schemes
  • Practise is changing often subtly are you and
    your insurance broker/adviser aware they need
    to know

11
  • CDM2007 place PI risk duties on PC, Designers,
    and CDM co-ordinator in particular
  • Materiality of PI risk to PC and Contractor RA/MS
    Designer is debateable given likely materiality
    to an accident by the same bodies executing the
    works but watch out for changes in PL wordings
    get your broker to explain by example and in
    detail how underwriters expect to interpret their
    policy wording

12
  • This is not just about Liability insurance
    Contract Works, Own Hired in Plant also
    relevant
  • Remember a standard Contract Works policy
    excludes loss or damage to original materials
    value of this cover often, but not always, is
    negligible
  • What about increased costs of working to your
    contract works following an incident after you
    have taken possession?

13
  • Insist your broker sits down with you on key
    insurances and takes you through the full insurer
    submission and policy wording boring yes but if
    you dont it may cost you everything
  • Have your broker put in the insurance input YOU
    put in the demolition input (and that means what
    actually happens on site)

14
  • On what basis was your EL/PL written statement
    of fact/prop just as material throughout the year
    of insurance as the policy wording
  • Insurance is NOT to be commoditised this cover
    in particular must be tailored to your needs
    personally
  • Many contractors claim not to understand
    insurance yet fail to use their brokers properly
  • A brokers job is NOT just to secure cheapest
    price his primary job is to arrange insurance
    that will protect both you and your Business
    sadly many are failing

15
  • Hot works lift steels tired employee
  • Underground Services
  • Bona fide Subcontractors
  • Pollution (Bartoline v RSA)
  • Liability assumed under contract
  • BS6187
  • Site inductions
  • Safety Policies
  • PPEand much much more

16
  • Dont wait until you have had a disaster before
    doing this eg
  • Policy wordings are rarely if ever set in stone
    if they are chances are youre with the wrong
    underwriters
  • DONT WAIT UNTIL NEXT RENEWAL DO THE CHECKS NOW

17
  • Relying on your broker understanding how you
    operate your business can be dangerous to you
  • Relying on the FSA is not likely to help you
    either in spite of FSAs constant monitoring of
    brokers and insurers
  • Broker terms conditions of business
  • I am not being sensational prove it for
    yourselves before you get caught out

18
  • HSE prosecution cover re EL/PL
  • Where to draw the line on what insurances to take
  • EL/PL
  • 21.2.1 type PL
  • Performance Bonds
  • Contract Works
  • Own Hired in Plant
  • Professional Indemnity
  • Directors Officers Liability
  • Commercial Legal Expenses
  • Motor (hazardous locations materials)

19
  • Insurance is just one of many risk management
    tools available to you to protect you yours
    dont be slow to consider minimising your risk
    exposures by other supplimentary options your
    broker may also be able to assist you here

20
  • a useful exercise when reviewing any or all of
    your insurances is to have your broker highlight
    to you key limitation and restriction areas of
    your insurances in addition to areas which the
    broker given his understanding of your business
    remain significantly exposed (not just on the
    specific policy but overall)

21
  • finally how are you preparing for 6th April
    2008 when the Corporate Manslaughter Corporate
    Homicide Act 2007 becomes operative how will
    your insurances protect your Business and
    dependant family lifestyles?

22
  • Any questions please?
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