CC members urged to be vigilant over insurance renewals

The Construction Confederation has called on member companies to ensure liability insurers abide by new Statement of Good Practice guidelines aimed at stamping out 'last-gasp' renewal reminders.

The Confederation, which has been lobbying for a realistic timeframe in which renewals should be sent, warned that if the new voluntary arrangements do not work it will press government for statutory rules.

The initiative, to provide businesses with at least 21 days notice of renewal terms, was drawn up by the Association of British Insurers and the British Insurance Brokers' Association.

The associations are recommending that insurers notify brokers of renewal terms not less than 21 days prior to renewal. Brokers should then pass the terms to the policyholder as soon as possible

The guidelines also state that insurers should extend cover if they do not intend to renew a risk but fail to provide notice of this more than 21 days in advance of the renewal date.

The Confederation has led a sustained campaign to find ways of easing the burden on contractors caused by the crisis in the employers liability insurance market. 

Confederation chief executive Stephen Ratcliffe said: "We have been lobbying hard for realistic renewal times as businesses need time to budget for proposed premiums and shop around for cover if they need to change insurers.

"Now we have to make sure that the minimum 21-day notice periods are followed and we want contractors to help by letting the Confederation know of examples where insurers and brokers break the terms of the guidelines."

He added: "If we find this initiative is not working we will press government for statutory rules to make sure that minimum notice periods become standard industry practice. The Confederation will also continue to work with the insurance industry and the Government in seeking other ways to help businesses overcome problems in securing affordable insurance cover."