Contractor Insolvency Cover
If you are a main contractor involved with a construction project, you may be required to provide some form of insolvency cover, or bond up to the value of the building contract or an agreed sum.
This insurance provides peace of mind to the Developer, should a contractor become insolvent.
If this situation occurs, the bond provider will pay the reasonable cost (to an agreed sum) in relation to the contract price to complete the construction work.
Now More Than Ever
As highlighted by the collapse of Carillion, contractor insolvency can be a risk not only for employers but on the wider construction industry supply chain.
The Coronavirus pandemic has had a catastrophic effect on the industry with the Government’s Insolvency Service recording more insolvencies in the 12 months leading up to March 2020 than any other sector.
Even with emergency legislation released by the Government to provide some protection from insolvency, the effects from the pandemic have only magnified the risk of contractor insolvency. No matter what part of the chain you are, if a contractor or sub-contractor goes bust on a project, everyone involved will be affected.
This highlights one of the many reasons why Developers should ensure their own insurance provides for contractor insolvency rather than rely on the contractor, as if insolvency occurs during the build stage, this can leave an employer at risk of being uninsured and potentially unable to get insurance cover.
As current economic climate causes inflation rises, the chance of contractor insolvency increases. Over the last couple of years, the cost of materials prices has risen along with increasing labour costs. These factors combined with supply chain issues, mean that making a decent margin becomes even harder, increasing the risk that a contractor may cease to trade.
Fill out the contact form to get in touch and we’ll call you back to discuss your requirements for Contractor Insolvency Cover
COVER YOUR RISK AGAINST CONTRACTOR INSOLVENCY
Regalia Homes Kent Ltd
“From our first contact Compariqo’s communication was excellent. Their requirements were clear and precise and our reply’s actioned immediately, resulting in the issue of a new home warranty, problem free.
Scott was always professional yet friendly, and should the need arise we would not hesitate to use their services again.”
“I approached Compariqo as they offer a broader choice in the market place when it comes to structural warranties. The service was fast and efficient and I would recommend them to other companies needing to source a structural warranty for a new development.”
Developer, Taunton, Somerset
“After struggling for weeks with numerous brokers to find a provider for my structural warranty policy, Alex and Compariqo took complete control of the situation and sourced me a policy which enabled me to complete my remortgage. Alex in particular was excellent and kept me updated regularly. I would highly recommend Compariqo!”
“I used Compariqo after being let down by another company. Alex Flexman dealt with all my enquiries and helped me constantly through all aspects of the service. He was extremely helpful and very professional throughout the process. I would highly recommend Alex and Compariqo to any of my associates needing structural warranties.”
“If you are looking for a one stop shop solution to out of the box and standard borrowing then Compariqo Finance covers it all. Where other lenders have tried and failed Compariqo Finance will find a solution. The level of service from Thomas Naidu and colleagues is second to none. I am so grateful for their effort in finding a bespoke lender, and never gave up until we found what I needed for my complex situation. I have never had such a good experience in 25 years in the business. Thank you so much.”
“I contacted Jacqui to compare quotes on warranty companies for the conversion of the existing house into three flats. The flats all have separate entrances and the basement level has a lightwell. I found Jacqui to be very forthcoming with information, updating me regularly with correspondence she had received from the warranty companies and a delight in general to talk to. We now go to compariqo for comparisons for all warranty companies on any new developments we have coming up.”
Wow thank you for sorting this so promptly. You have saved me a lot of time & anxiety.
CSCL DEVELOPMENTS LTD
Excellent, prompt service and we will definitely be using you again during our next build. Both Steve and myself were impressed from our initial contact with Jaimie through to completion.
Jaimie explained in detail the insurance suitable and immediately emailed the contract for us to read. No sales pressure and responded when answers were required.
So, thank you again to you and your team at Compariqo.
Sandra and Steven Page