In reality, this strategy often backfires and the consequences are becoming more severe. Insurers are taking an increasingly firm stance on late applications for Contract Works insurance, so it is worth taking note of the following: No guarantees. Applications made after a build has commenced are no longer guaranteed coverage. We have seen insurers outright refuse to offer cover for projects that have already broken ground, unless an exceptionally strong case is made. The additional work to secure insurance can lead to higher fees. Increased costs. If an insurer does agree to cover a late application, they are almost universally applying a ‘late application penalty’. This is typically an additional 10% premium. Claims risk. Beyond the added expense, late applications create significant friction during the claims process. Investigations into the exact
dates of events can lead to agonising delays and, in some cases, result in claims being declined entirely due to the lack of continuous coverage.
Protect your project from day one Insurance is the foundation of your risk management strategy. By planning for realistic cost fluctuations and ensuring coverage is in place before the first truck turns up on site, you aren’t just saving money in the long run – you are protecting your professional reputation. Furthermore, you are ensuring that if disaster strikes, the path to recovery is clear, not mired in disputes and shortfalls. ICIB Brokerweb is the trusted insurance broker for NZCB and has been helping to insure Kiwi businesses for over 50 years. Give us a call on 0800 644 444. icib.co.nz
We have observed major building suppliers reporting individual supplier increases of up to 15% due to the current economic environment.