Joinery insurance is an essential consideration for any company that installs or assembles constructed elements, fixtures, and fittings. In many trades, it is a legal requirement to have joinery insurance with the relevant trade organisation as a condition of a joiner’s installation permit. There are very few trades that do not require the provision of joinery cover before installing construction elements. Joinery cover will often need to be taken out by the contractor on behalf of their subcontractor or supplier.
The level of cover is typically agreed on a project by project basis, with specific valuation and payment clauses included. The level of cover is agreed as a percentage of the total contract cost (with a maximum value agreed for any one claim) and usually ranges from 1% to 10%. If a claim is made, the insurers will generally agree on an equitable apportionment of the loss between all involved parties.
Why is Joinery Insurance Essential?
Insuring against claims arising out of construction is critical to any company that owns, installs, or assembles constructed elements, fixtures and fittings. By law, claims relating to work done on a building must be insured by the relevant association before being allowed to proceed. Therefore, it is essential to ensure that any claim is correctly defined and that policy cover is correctly applied. Strict rules govern the use of trade insurance when installing or assembling elements, fittings and fixtures, which should be followed carefully to avoid later difficulty with insurers.
A contractor or company that installs or assembles construction elements, fixtures and fittings will require cover to cover the risk of loss of profits in the event of an accident. On-the-job insurance is commonly used for this purpose. Contractors will often require cover for any employee engaged in a way that risks being exposed to an accident whilst under their control, such as a crane lift or scaffolding.
The principle of joinery insurance is different from other types of insurance. Instead of insuring the value on an object, the insured is insuring a process. The insured would be insuring the process and not the end product. That being said, some risks are often considered to be part and parcel of joinery insurance.
Further guidance for businesses’ considering joinery insurance can be found here.
What Risks does Joinery Insurance Cover?
Unless the specific installer bought cover against them, these risks are usually excluded from cover. It is always important to check the terms and conditions to ensure that it caters for all eventualities. A wide variety of policy wordings are available, such as “All Risks”, “Completed Operations”, and “Strict Liability”. Each type of policy is designed with a different purpose and should be used accordingly.
The most commonly used type of cover is usually a “Completed Operations” policy. It allows the insured to receive compensation for a loss that has occurred during the installation process, which often covers losses that are difficult to quantify. For more information on a typical cover, please click here.
UK Regulations on construction workers’ health and safety at work have resulted in a compliance culture within the industry, which has increased claims relating to the installation of constructed elements. The effects of these claims are far-reaching and, particularly in the case of large building contracts, can result in financial loss and significant damage to a contractor’s reputation if they were to be involved in a claim.
How to Obtain Joinery Insurance
Joinery insurance can protect against claims arising out of construction work. The contractor can also take it out on behalf of his subcontractor and suppliers. The principle of cover is different from other types of cover and should never be confused with other types. Joinery cover is rarely required for non-construction activities such as supplies, services or waste removal. Still, it is vital for any company that installs or assembles construction elements, fixtures and fittings.
Joinery insurance is essential when installing construction elements, fixtures, and fittings. By law, claims arising out of construction work must be insured by the relevant association before the work may be carried out on site. Therefore, it is essential to ensure that any claim is correctly valued and that policy cover is correctly applied.
It is vital to measure carefully, take photos and make detailed notes at the time of installation or assembly, as this can help to avoid any dispute or loss of profit in the event of a claim.
Joinery insurance is essential for any company that installs or assembles constructed elements, fixtures, and fittings. In many trades, it is a legal requirement to have joinery insurance with the relevant trade organisation as a condition of a joiner’s installation permit. There are very few trades that do not require the provision of joinery cover before installing construction elements. Joinery cover will often need to be taken out by the contractor on behalf of their subcontractor or supplier.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Churchill Business Insurance
Hiscox Business Insurance
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