What are the reasons behind the increase in insurance benefits in the construction world

All construction professionals must take out insurance to cover the repairs of any damage caused to a work they have carried out. This is the ten-year insurance which is a legal obligation for all builders before the start of any new construction site. However, in recent years, there has been an overall increase in insurance contributions and this in all areas. Craftsmen and construction professionals are not spared. What are the reasons behind the increase in insurance benefits in the construction world in 2022?

The ten-year insurance is imposed by law on all construction craftsmen, from the contractor to the architect via the mason. This insurance benefit covers compensation for damage to the building over a period of ten years after delivery. Indeed, the damage related to all the failures noted on the work during this period will be covered without risking to ruin the craftsman or the company. It is therefore both an obligation and a guarantee for all players in the construction sector.

However, for the past ten years, we have witnessed a surge in prices, particularly of raw materials in all areas. This is not without consequence on the final products. In addition, construction requirements are increasing, and the impacts are clearly felt in financial terms. This also affects the insurance sector. In fact, offers from insurers increased slightly in order to better respond to new challenges, and better satisfy customers.

We are therefore witnessing an increase in the ten-year insurance which, compared to previous years, suffered a 4% increase in 2022. If we take into account, for example, the construction cost index announced by the French Building Federation, it has increased by 3%. This necessarily has an impact on ten-year insurance contracts, which have therefore experienced a premium increase.

In this context, when you get a construction site, you absolutely must take out ten-year insurance adapted to the type of work you have to carry out. There are a multitude of providers on the market, and you must choose a ten-year insurer who offers solutions within reach of your wallet. This despite the increase in insurance rates in construction. The best insurers are driven by the desire to provide quality services while taking creditworthiness into account.

Professional liability insurance, + 12%

Apart from the ten-year insurance, third-party liability is also one of the insurance benefits that are on the rise. The latter is optional for craftsmen, but compulsory for all professionals who exercise or carry out regulated activities. We can cite, among others, lawyers, doctors and architects. This is important insurance because it allows you to repair damage suffered by others in the course of your activities. It is damage caused by you or one of your employees to a third party.

Due to the significant inflation observed in all sectors, the premiums for Professional Civil Liability insurance contracts also increased considerably. In the health sector, for example, covering hospitalization costs and monitoring patients until recovery are becoming more and more expensive. To better face this new situation, professional liability insurance has increased by 12%. This gives rise to new tariffs offering all the guarantees of full coverage in the event of damage to a third party in the context of your professional activities.

A 4% increase for the health insurance of your employees

Mutual health insurance is part of the obligations of employers vis-à-vis their employees. In companies, employers are required to participate in the health coverage contributions of their employees for at least 50% of the total amount. It is not up to the employee to take charge of care alone with his personal resources, when an accident at work occurs. It is your responsibility to participate in the charges that require care for him for his recovery. The mutual health insurance is registered in the declaration of your employees.

In 2022, premiums for mutual health insurance increased by nearly 4% due to hospital reforms and measures. It should be specified here that the contributions of mutual insurance companies are broken down according to the costs of the services they are reimbursed. Several reasons, such as the increasingly high cost of health care, can therefore explain the increase in company health insurance contributions. There is also the aging of the population and the development of certain chronic diseases. Not to mention new taxes and regulations. The peak amount of taxes levied between 2000 and 2019 on mutual health insurance contracts is estimated at nearly 3.2 billion. In terms of reforms, we can mention the deployment of the reform of the 100% and the Covid tax.

Remember to renegotiate the guarantees of your premises and vehicles

Today, several building craftsmen have defined their place of residence as a workplace. This is often advantageous for them insofar as they are often on the move, then considering renting an office as not essential. In addition, as part of your activities, to get around, you very often use vehicles, whether those of your company or a personal means of transport. It would be fair to ensure that you have insurance that is profitable for you in the event that you use your own premises and vehicles for professional purposes.

Local Pro guarantees

Home insurance may seem insufficient when you transform your premises into a workplace for more productivity. It is preferable to take out professional multi-risk insurance in this case in order to protect you from all possible dangers that may arise from the professional use of your place of residence. Insurers offer tailor-made offers that take into account the needs related to the use of your premises as a workspace. You must renegotiate your guarantees by protecting yourself with offers, at the stage of:

  • fire and water damage insurance,
  • warranty on electrical damage and stored equipment,
  • the operating loss guarantee.

These different offers combine to offer you guarantees that are mandatory in the eyes of the law. They also provide you with optional protections for risk prevention in the performance of your duties from your home. You can, by mutual agreement with your insurer, determine the risks, and thus adapt the guarantees to your needs in order to have the best insurance offers.

Vehicle insurance for construction tradesmen

If the Professional Civil Liability insurance is contracted to cover bodily injury suffered by a third party while using your vehicle, it is preferable today to make additions to better meet new requirements. In addition to accident risk prevention, the vehicle itself may suffer breakdowns. It would be interesting to take your precautions through new types of guarantees such as:

  • breakdown assistance,
  • warranty with replacement vehicle,
  • glass breakage guarantee,
  • insurance against theft and fire.

The list of guarantees is long. You must therefore renegotiate your vehicle warranties with your insurance company in order to get the best out of them. Vehicles are important work tools for construction craftsmen. It is therefore essential to have the most advantageous guarantees, whether the use is for professional or personal use. For this, you must look for the solutions available on the market in terms of insurance. The best equipment to go with you is not the one with the lowest price. It is the one that offers you tailor-made solutions at the best price.

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