Insurance for work sites

[Isetech]

This is another topic that I a have been pondering on.

Firstly do you even have insurance for your sites where you work and how much cover do you actually need ?

Last I checked I had a million rands worth of cover, but things have changes and the value of the properties where we work have doubled if not tripled.

Chatting to someone the other day, about solar projects, lithium batteries and fires, got me thinking.

[GCE]

Most of our contracts stipulate 10 million contractors all risk including maintenance contracts

There was a story that started with insurance companies not accepting COC's for house sales unless it was accompanied with the contractors all risk policy of a minimal insured value of 10 million

As a contractor you should definitely have it as it also protects you - If a client has a go at you for damage the insurer will assign a assessor and legal team to protect there interests vs you having to pay out for legal services

[Derlyn]

10 million insurance for a house selling for 1 or 2 seems a bit over the top.

[Isetech]

Generally speaking, it would depend on your customer base, if you only do domestic work, once you start doing commercial and industrial work, then you might need a lot more than R10 million. I have worked on projects where our portition of the work is valued at R140 million. In some cases I would look at insurance specific to the project and include the insurance cost in the quote.

10 million insurance for a house selling for 1 or 2 seems a bit over the top.

[Isetech]

By the way have you looked at the prices of properties in upmarket areas .

[Derlyn]

Couldn't care what upmarket prices are. If the house sells for 2 mill then insurance for 10 mill is over the top.

You wouldn't take out insurance for a merc if you've got a Volla.

[GCE]

It adds up quickly - House burns down , 2 cars go with it , maybe a boat- household contents , demolition and disposal costs , architect fees , plan submission fees and then accommodation costs for similar while the building gets rebuilt - Then hopefully there is not an injury that requires hospitalization and add a loss of earnings claim along with all the legal fees .

You will be wishing that the insurance policy was in place - Contractors all risk premiums are based on the excess you choose and your turn over.

Let the same scenario play out in a townhouse complex that are close to each other with a bit of wind involved and suddenly there are a couple of extra houses being charged to your account , or worse a block of flats .

Most will say , I do the work myself and it is always right - You know the story , " since you were here " - By the time you prove that it was not your fault the legal fees could be at R 200K whereas insurance would have picked up that tab, suddenly the policy premiums are cheap
It happens , have seen it and had to listen to the stories , don't fool yourself , speak to a broker

[Derlyn]

Interesting subject.

I wasn't aware that a coc was a guarantee against fire.

I have always been under the impression that a coc was a declaration that the installation is reasonably safe when used for it's intended purpose.

Nothing more, nothing less.

Seems as if I have been misled.

[GCE]

Interesting subject.

I wasn't aware that a coc was a guarantee against fire.

I have always been under the impression that a coc was a declaration that the installation is reasonably safe when used for it's intended purpose.

Nothing more, nothing less.

Seems as if I have been misled.

If you do a COC and shortly thereafter there is a fire an investigation by the fire department will take place - If Fire department deem it to have been started by an electrical short you could end up having to defend the accusation of negligence in carrying out your COC inspection and repair .

[Derlyn]

You cannot believe how much work I've lost in the past.

People contact me for a coc because they don't want their house to burn down.

When I tell them that a coc is not a guarantee that their house won't burn then all of a sudden they don't need the coc anymore.

[Isetech]

I think many of the people reading these posts are starting to understand why charging R450/550 even 650 per hour is just not realistic.

When you see a bill from an electrical contractor charging anything from R850 - to R1500 per hour, its not that the rates are high, there is a good chance that the elctrical contractor is registered, has "äll" the correct insurance cover, pays PAYE, workman's compensation, staff are registered with the NBCEI, etc, etc, etc.

If the customer says you are too expensive, you are not the problem, the customer is the problem. they are not looking for and elctrical contractor, they looking for a cardboard electrician or handyman.

[Dylboy]

100% I am small and taking all into account I need to be at 850 an hour and no discount for a 6 hour day or long project or anything.

Yet I say R650 for a call out I get a grunt.

Then on the other hand they say wow we sparks are in demand and someone decent.

Confusing for sure.

If I could charge what it was actually worth last year I would not have been in the debit order bouncing I was in...

So this year I am now charging, my thought process is my car not started is a profit.. accountants would scream at me but so far working ok and weeding out the ones that don't value the knowledge you have

Sent from my CPH2197 using Tapatalk

[Isetech]

2 things to consider:

1/ You need to start somewhere.

2/ Once you mention your fees, it is very difficult to increase your fees.