19 Dec Brexit Construction Business Insurance Concern
Brexit Construction Business Insurance Concern
Brexit is still unresolved and inevitably the uncertainty is having an impact on every sector of the UK economy, not least the construction business insurance market.
The British construction sector relies heavily on European Union migrants into the UK and it is this factor, as well as other Brexit-related fallout, which means it is now in the throes of a period of doubt and reflection.
Figures from the Office for National Statistics, show that there were 2.2 million people employed by the construction industry between 2014 and 2016, with 165,000 (7.5%) of the workforce non-British EU nationals. The situation in London is even more acute, with 28% of the construction workforce non-British EU nationals.
The construction business insurance impact
It is very difficult to predict just how Brexit might affect the construction sector and the construction business insurance market. However, one thing is certain: the UK’s exit from the EU is likely to result in a skills shortage and may lead to projects being stalled or abandoned, rising project costs, higher wage demands from eligible workers and, crucially, a surge in the number of dissatisfied clients.
Against this background, it is easy to see how many construction clients will seek legal redress for delayed timescales, unexpectedly high costs and other Brexit-related complications. As such, construction companies could find themselves facing a perfect storm; saddled with increased costs, a labour and materials shortage and a surge in litigation initiated by disgruntled clients.
Whatever the case, any construction business concerned about the potential impact of the UK’s departure from the EU should ensure that it has sufficient construction business insurance in place in order to ensure protection in the event of professional negligence claims or other litigation caused, at least in part, by the conditions surrounding Brexit.
Construction business insurance with Tredstone
If you would like to discuss the best way to cover your insurance risks with a portfolio of construction business insurance, get in touch with Tredstone today. You can click on the Get a Quote button to begin the process, or you can call our team directly for professional and personalised advice.