ECIC issues double cover warning to contractors

ECIC, the specialist insurer for the construction sector is urging contractors to check they are not doubling up on insurance cover for goods in transit.  This follows a spate of submissions for Contractors All Risks (CAR) cover where insurance quotes were also being sought for the same contractor, for Goods in Transit insurance.  In many cases only one type of cover is necessary for adequate protection for goods in transit, offering contractors the potential of premium savings.

The ECIC standard Contractors All Risks policy provides cover anywhere in the UK, including in transit, whether this be the materials for incorporation within the contract or Own and Hired in Plant if selected. There are no inner limits and this applies for off-site storage of materials as well, although there can be certain differences in conditions such as higher excesses under annual CAR policies.

Phil Scarrett, sales and marketing director for ECIC said: “We have seen a number of cases where goods in transit cover has been quoted in addition to Contractors All Risk.  This is in effect, a duplication of cover.  The circumstances where a Goods in Transit policy could be required in addition may be where the contractor is transporting stock or customers’ goods.  This would not be picked up under a Contractors All Risks policy, but in all other respects, contractors are covered and should not need to take separate insurance.”

“We would always recommend that contractors take time to read policy documentation fully and seek the advice of a specialist insurance broker to ensure they have the cover to meet their precise needs.”