Case Study

Mechanical & Engineering

Client Industry: Mechanical & Engineering

Annual Turnover: £24m with approximately 87 employees

40% Reduction in the annual Contractor’s All Risks premium after a detailed evaluation
UK & Global was able to establish that the majority of Contract Works insurance cover was already arranged by the Main Contractors with whom the client worked
Effectively the client had ‘Dual Insurance’ in place for 90% of the time prior to the evaluation

Key to the success was the time invested by the client in the research, and provision, of the relevant Data

The Client provides Design, Installation and Maintenance of Heating, Ventilation and Air Conditioning systems.

The vast majority of the contracts undertaken by the Client were as a Sub-Contractor to the Main Contractor
As the Client holds its own Contract Works Insurance we established that there was a lack of clarity over which Party insures Contract Works, i.e. is it the Main Contractor or the Client?
It was therefore uncertain as to whether Dual Insurance may be in place

We advised the Client to undertake a review of all of its contracts over the previous 12 months in order to establish what % of contracts undertaken were on a Sub-Contract basis
In addition, we asked the Client to provide a copy of its terms and conditions, which are issued to Main Contractors, in relation to the provision of Contract Works Insurance

It was established that 90% of contracts were undertaken on a Sub-Contract basis
UK & Global gained agreement from the Client’s Contract Works Insurer to re-rate the Contracts Works premium as the Main Contractor was providing the relevant Insurance for 90% of the Client’s activities
The Client amended its terms and conditions which created greater clarity in relation to the provision of Contract Works Insurance
The Contract Works Insurance premium was reduced by 40%