aba Group Advises Contractors on Risks Associated with Hired Plant
For Contractors, risk is an ever present facet of contracting work that needs to be considered and managed carefully. The very nature of their work means that a multitude of things can go wrong, so Contractors need to be prepared for everything.
For Contractors, risk is an ever present facet of contracting work that needs to be considered and managed carefully. The very nature of their work means that a multitude of things can go wrong at any time and so Contractors need to be prepared for every eventuality. Some of the most common risks that need to be accommodated are the theft of and damage to plant, tools and equipment.
For a contract to be worked upon, workers need the equipment and plant to get the job done; if it has gone missing, or is damaged, then work may ground to a halt. The kind of insurance you will need to cover such an instance will depend upon whether the equipment is owned by the contractor, or if it has been hired in.
Graham Webster, the Managing Director of the Business Insurance Brokers, aba Group, states:
“Some contractors who work on a number of different projects may opt to hire in plant for specific tasks rather than to purchase plant outright. This saves them from having to make large investments and it means that they won’t need to spend money on maintenance and storage; freeing the capital for use on other projects. Of course by hiring in plant, the contractor is then liable for it, so in the event of damage or theft; the contractor will likely have to pay for the repairs in the event of a damaging incident, or for the replacement of plant and the everyday cost of rental until a replacement is delivered, in the event of theft”.
So where plant is damaged, work may be held up until repairs are carried out and the costs will reduce the overall profitability of the project; in the event of theft, work may have to be postponed for an even longer period, or additional plant may need to be hired in at an additional cost whilst a replacement is found. For those contractors that have not been in business for long, the cost of a replacement JCB could be the difference between turning a profit and making a loss on a small project.
“What contractors can do instead to help manage these risks is they can invest in Hired in Plant Insurance. The precise level of coverage will depend upon the policy, but generally it will save them from having to pay out for repairs, replacement and any potential legal costs associated with the incident so that contractors can focus upon getting the job done. We can build this into our Contractors Insurance policies as well as our Contractors All Risks Insurance for a more comprehensive level of cover” adds Mr Webster.
In the construction industry, projects are very time sensitive and where a project over runs the anticipated completion date, the contractor must then foot the bill for the continuing charges resulting from keeping workers, plant and equipment on-site. As such, it is vital that these risks are catered for to prevent the interruption of work wherever possible.
“For contractors that are just starting out, or for those that wish to switch to hiring in plant, rather than keeping their own, we’re more than happy to help them recognise the risks involved and to advise them on how they might work to manage those risks, by getting Hired Plant Insurance. Our tailored cover can be built to cover a specific project, or just a limited time period; as well as being able to cover the specificities of their particular project” states Mr Webster.
With a combined experience of over 70 years in the Business Insurance Services industry, the aba Group is able to offer highly tailored and comprehensive Hire Plant Insurance policies to businesses across Bolton, Manchester and the surrounding areas as well as policies covering a range of business areas including construction, liability and much more.
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About aba Group:
aba Group Business Insurance Brokers has been operating in Bolton for years, headed by Managing Director Graham Webster and fellow Director Lynne Eckersley, they have 70 years’ experience in the industry between them. Their specialist insurance coverage spans schools and academies, directors, officers, contractors, engineers, landlords and a whole host of other professional roles and activities; which has seen them become the go-to business insurance brokers locally.
For further information contact:
- Contact Information
- Graham Webster
- Managing Director
- aba Group
- (44) (0) 1204 364 842
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