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The Federation of Master Builders declared itself cautiously optimistic by the short term recommendations made in the report into liability insurance published this week by the Department of Work and Pensions, and urged the government to implement the proposals immediately.
Said FMB's director of external affairs, Andrew Large:
"We particularly welcome plans to encourage insurers to lower premiums for small and medium sized businesses with a good health and safety record."
The FMB is one of the prime movers in developing safe working practices within such firms, working in partnership with the HSE/Working Well Together Campaign to organise a series of Construction Health and Safety Days offering practical guidance on how to recognise and deal with some of the main the health & safety problems on building sites.
Andrew Large added:
"FMB Insurance Services, and our brokers Aon already work with members to help them take best advantage of good heath and safety practice when renewing policies." FMB has operated an insurance service for its members for over 40 years, negotiating preferential terms that have insulated members from some of the astronomical price rises elsewhere in the market. Last year increases in insurance cover for general builders using FMB Insurance Services was around 17.5% and this year's increase is unlikely to exceed 30%.
FMB also welcomed proposals to crackdown on uninsured firms, which will go a long way to prevent cowboy operators from undercutting legitimate traders, and the recommended increase in minimum notice periods for policy renewals so that businesses can shop around for the best deals on Employers' Liability cover. FMB expressed its surprise that no evidence was found of firms trading without insurance.
"It is not uncommon for us to turn away firms that try to become FMB members because they can't provide us with details of their insurance, even before we start any other checks, and we suspect it's not because they can't find their policies," said Mr Large.
However, Mr Large counselled:
"More work will be needed to make the case on insurance market regulation to ensure that this type of crisis does not happen again. We will certainly be working with Aon on the separation of long-term disease insurance from accident insurance."
First posted: 6 June 2003. Last modified: 6 June 2003.
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