When it comes to the insurance industry, there are a number of different types of risks that insurance companies take on. Some trades are considered higher risk than others, due to the dangers and potential for accidents involved in the work.
Scaffolders, roofers and other construction workers are considered some of the most high risk professions by the insurance industry.
In this blog post, we will explore why these trades are considered high risk and what insurers look for when underwriting policies for them.
The Highest Risk Activities for Construction Workers
The main reason certain trades within the construction industry are considered high risk is because of the high risk activities they undertake.
The following are considered the highest key risks for construction workers:
- Falls
- Trench hazards
- Electrical hazards
- Scaffolds
- Confined spaces
- Heavy construction equipment
Falls
As the insurance industry knows, construction workers have one of the most dangerous jobs in the world. Every year, hundreds of workers are killed on the job, and many more are seriously injured.
The most frequently cited cause of fatalities among construction workers is falling — both same level and falls from heights, such as from scaffolds or ladders.
In addition, falling is the leading cause of major injuries in the construction industry.
Falls from heights include working on scaffolds or other elevated levels and ladders. These falls are particularly dangerous, as they can result in very serious injuries or even death.
Trench hazards
Working in a trench can be extremely dangerous. The most obvious hazard is the risk of a cave in. This can occur if the trench has not been shored or shielded adequately, and can easily crush or bury a worker. Every year, dozens of workers are killed and many more are injured in trench collapses.
Falling objects are another hazard trenches pose to workers.
In addition, trenches often intersect with underground utility lines, making it possible to accidentally strike a gas or water line. This can lead to explosions or floodings that can also cause serious injuries or even death.
Finally, trenches can be poorly ventilated, leading to a build-up of harmful gases that could cause immediate asphyxiation or lead to health problems later on.
Electrical hazards
A significant number of all electricity related fatalities in workplaces occur on construction sites. This is likely due to the fact that construction sites are filled with electrical hazards, from exposed wires to ungrounded power sources.
In addition, construction workers are often working outdoors, in close proximity to power lines, increasing the risk of electrocution. They are also using a variety of tools and equipment that can create electrical hazards.
Scaffolds
Scaffolds are a common sight on construction sites in the UK, but they are also one of the most dangerous activities that workers can undertake. Every year, there are dozens of accidents involving scaffolds, many of which result in serious injuries or even death.
Accidents can occur if the scaffold collapses or if workers are struck by falling objects. In addition to the risk of injury from the scaffold itself, working on scaffolds also exposes workers to dangerous heights. The most common type of accident is a worker falling from the scaffold, which can happen if the scaffold is not properly secured or if the worker is not wearing proper safety equipment.
Confined spaces
Construction sites in the UK have various spaces that qualify as confined spaces, such as manholes, sewers, and tanks.
According to the Health and Safety Executive, a confined space is “a space in which, by virtue of its enclosed nature, there is a reasonably foreseeable risk of death or serious injury from hazardous substances or conditions within the space.”
Confined spaces pose hazards that can cause death very quickly. In addition many workers have lost their lives after entering a confined space to save a coworker.
One such hazard is exposure to toxins. Even a small amount of exposure can cause death or serious injury. Another hazard is the risk of being crushed by falling debris.
Workers who are unaware of the dangers posed by confined spaces are at even greater risk of being injured or killed.
Heavy construction equipment
According to the UK’s Health and Safety Executive, construction fatalities reached a five-year high in 2018, with many workers losing their lives. Out of these, a significant proportion were killed as a result of being struck by a moving vehicle.
This is a tragically common occurrence on construction sites, where large vehicles are constantly moving around. Construction sites are bustling places, full of activity and heavy machinery. With so much going on, it’s perhaps not surprising that accidents like these are common.
Cranes, earthmoving equipment, forklifts and other vehicles can pose a serious threat to pedestrian workers if they are not carefully monitored. In many cases, these fatalities occur because the driver or operator of the vehicle fails to remain aware of nearby workers or pedestrians.
Pedestrians themselves need to be aware of where these vehicles are at all times, and operators need to be aware of where pedestrians are.
Unfortunately, many construction fatalities occur each year because construction sites are full of blind corners and busy areas and workers fail to remain aware of each other.
Which Trades Are Considered High Risk in the Insurance Industry?
There are many different trades involved in the construction industry, from bricklayers and plumbers to electricians and roofers. Some of these trades are considered to be high risk in the insurance business, due to the potential for accidents and injuries. These include roofing, scaffolding, demolition and asbestos removal, amongst others.
Each of these trades comes with its own unique risk factors, which is why it is important to make sure that you are fully insured before undertaking any work.
These are some of the trades which can be considered high risk in the insurance business:
- Roofing involves working at height and with sharp tools, both of which can pose a significant risk of injury.
- Scaffolding erection and dismantling also carries a number of key risks, particularly if the scaffolding is not erected correctly, not to mention the fall risk.
- Demolition work can also be extremely dangerous, as it involves working with heavy machinery and potentially unstable structures which pose significant risks.
- Asbestos removal is another example of a high risk trade, due to the health risks posed by asbestos fibres.
- Electricians are also considered to be high risk, as they work with dangerous cables and equipment. If an accident were to occur, the consequences could be very serious.
- Plumbers are another group of tradesmen who can be classed as high risk, due to the fact that they work in proximity with gas pipes and other potentially hazardous materials. Any accident or leak could have serious consequences.
Tradesmen who work in these high risk trades often have to pay more for their insurance than those in other industries, as the insurance companies are taking on a higher risk when insuring them.
Insurance for High Risk Trades
As a result of their high risk exposure, tradesmen who work in these industries often have to pay higher premiums than those in other industries. Due to these risk factors it is essential to make sure that you are adequately protected by insurance.
Contractors All Risk Insurance
Contractors All Risk insurance is an insurance policy that provides coverage for a wide range of risks associated with construction projects. It is typically used by contractors and subcontractors working in high risk trades, such as demolition, rigging, and scaffolding.
While Contractors All Risk insurance is not required by law, it is often a condition of contracts in the construction industry. It goes without saying that Contractors All Risk insurance is an important consideration for any contractor or sub-contractor working in a high risk trade.
As discussed, in the construction industry, there are plenty of high risk trades that come with their own unique set of risks. From electricians to scaffolders, these tradespeople often face risks that other workers don’t have to worry about. That’s why it’s so important for them to have Contractors All Risk insurance.
Contractors All Risk insurance is specifically designed for high risk trades in the construction industry. This type of insurance provides protection for both the contractor (and their employees) and the customer in case of any accidents or damage that might occur during the course of a project.
For example, let’s say an electrician is working on a job site and accidentally cuts through a power line. If the electrician doesn’t have Contractors All Risk insurance, then they could be held liable for any damages that occur as a result of the accident. However, if they do have Contractors All Risk insurance, then they can file an insurance claim and the insurance company will cover the cost of any damages as well as medical costs up to the insurance policy limit.
In addition to protecting against risk of accidents, Contractors All Risk insurance also provides protection against other risks, such as weather damage, equipment failure, and even theft.
An insurance company can also include protection against property damage, personal injury, and third-party liability. In some cases, Contractors All Risk insurance policies may also provide coverage for business interruption and loss of earnings.
No matter what type of trade you’re in, if you’re working in the construction industry, then Contractors All Risk insurance is an essential consideration.
Why choose Construction Insure for your All Risks Insurance?
At Construction Insure we have 25 years of experience in the insurance business and specialise in the construction industry. We offer Contractors All Risk insurance based on your individual requirements – as a specialist insurance company with an expert understanding of the construction industry, we can help you find exactly the right Contractors All Risk insurance cover for your needs. In addition, all of our polices are comprehensive and are placed with A+ Rated Insurers.