Your business can change quickly.
You may start taking on larger jobs, add new services, buy specialist equipment or begin working in areas that carry more risk than the work you originally insured.
For contractors and tradespeople, that could mean:
- A landscaper starting to carry out tree work.
- A builder moving into roofing.
- A groundworker taking on deeper excavation.
- A carpenter beginning to manage full refurbishments.
- A contractor starting to provide surveys, designs or professional advice.
These changes can be positive signs that the business is growing.
But they can also affect your insurance.
If the work you carry out changes, it is important to tell your insurer or broker rather than assuming your existing policy automatically covers the new activity.
Has your business started offering new services? Speak to CHAS Insurance and make sure your cover still reflects the work you actually do.
Why Do Insurers Need to Know What Work You Carry Out?
Insurers assess risk based on the information they have about your business.
That includes the type of work you undertake, where you work, who carries out the work and the equipment involved.
A business carrying out domestic decorating presents a very different risk from one carrying out roofing work at height.
Likewise, a landscaper providing lawn care and garden maintenance may present a different risk profile from one carrying out tree felling, excavation and commercial groundworks.
That is why insurance brokers need an accurate picture of what your business actually does.
What Counts as a Change in Trade Activity?
Not every small change will necessarily affect your insurance.
But if the nature of your work changes in a meaningful way, it is worth raising with your broker.
Examples include:
Taking On Higher-Risk Work
A landscaping business may begin carrying out tree felling.
A contractor may move into demolition or excavation.
These activities can introduce different risks, so your insurer may need to reassess the cover.
Adding a New Trade
Many construction businesses operate across several trades.
You might begin as a carpenter but gradually move into general building.
Or you may run a landscaping company that also starts offering fencing, groundwork and drainage.
The more your business expands beyond the original activity described on the policy, the more important it becomes to check that the insurance still matches what you do.
Moving Into Commercial Work
You may have started with domestic jobs and later moved into commercial or construction-site work.
The physical task itself might be similar, but the contractual requirements can be very different.
Providing Advice or Designs
A contractor who starts providing surveys, reports, designs or professional recommendations may introduce a new type of risk.
This is because the customer may rely on that advice when making a decision.
In some circumstances, that could mean professional indemnity insurance becomes relevant.
Using New Machinery or Equipment
Buying an excavator, wood chipper, specialist saw or other expensive equipment can also change your insurance needs.
The new equipment itself may need cover, while the activity it allows you to undertake could also affect your liability risks.
What Happens If You Do Not Tell Your Insurer?
The main risk is that your insurer may not have been given an accurate picture of the work being undertaken.
For business insurance, the Insurance Act 2015 places a duty on policyholders to make a fair presentation of the risk when entering into an insurance contract.
Your individual policy may also contain conditions requiring you to tell the insurer about certain changes during the policy period.
What happens if something has not been disclosed will depend on the circumstances, the policy wording and the significance of the information.
That is why it is much safer to raise changes before carrying out the new work rather than discovering there is a problem after an incident.
If your business has changed since your policy was arranged, speak to CHAS Insurance before assuming you are covered.
Could Your Claim Be Affected?
Potentially.
Imagine a landscaping business insured for general garden maintenance begins carrying out tree-felling work without telling its insurer.
If an accident then occurs during that tree work, one of the first questions is likely to be whether that activity was within the scope of the policy.
The same issue could arise if:
- A builder begins carrying out roofing
- A carpenter starts undertaking structural work
- A groundworker begins deep excavation
- A contractor starts demolition work
- A tradesperson begins providing professional consultancy
The exact outcome of any claim will depend on the policy terms and circumstances.
But the safest position is always to make sure your insurance provider knows what you actually do.
Why Growing Businesses Are Particularly at Risk
Insurance can easily fall behind a growing business.
The changes often happen gradually.
You take on one employee.
Then another.
You buy a bigger van.
You add a new service.
You start using subcontractors.
A commercial client offers you a larger contract.
Before long, the business looks very different from the one you originally insured.
That makes regular insurance reviews particularly important for construction and trade businesses.
Do Not Rely on the Trade Name Alone
One of the biggest mistakes is assuming your occupation title tells the whole story.
“Builder” can mean almost anything.
“Landscaper” can include anything from lawn mowing to tree felling and groundwork.
“Carpenter” can range from fitting doors to managing major renovation projects.
What matters is not just what you call your business.
It is what you actually do.
Your broker should understand the full range of services you provide so they can help arrange appropriate cover.
Keep Your Insurance in Step With Your Business
Business growth should be a positive thing.
Taking on bigger contracts, adding services and expanding into new areas can all create valuable opportunities.
Your insurance simply needs to develop alongside the business.
CHAS Insurance is an insurance broker that specialises in commercial insurance for construction businesses and associated trades. We understand that contractors often work across several activities and that those activities can change over time.
If you have added new services, moved into higher-risk work or simply are not sure whether your current policy reflects everything you now do, we can help you review your requirements.
Has your business changed since you last arranged your insurance? Contact CHAS Insurance today and make sure your cover has kept pace.
This article provides general information only and does not constitute insurance advice. Insurance cover, requirements, conditions and exclusions vary between policies and businesses. Always check your policy wording and discuss changes to your activities with your insurer or insurance broker.