The timber and woodworking sectors have joined with steel and concrete bodies to lobby the insurance industry about the serious impact removal or reduction of cover is having on companies.
The Timber Trade Federation (TTF), British Woodworking Federation, Builders Merchants Federation, Construction Products Association and the steel and concrete sectors met with three representatives of the Association of British Insurers (ABI), including its head of general insurance services Nick Starling, on December 12.
The move follows concerns created by underwriters pulling credit cover, forcing some companies to take on the risk themselves..
After the meeting, TTF chief executive John White said the meeting was the start of an ongoing dialogue with the ABI and provided a chance to communicate the concerns.
“I do not think they fully understood how deep the sentiment of the trade was and appreciate fully the impact the situation was having,” said Mr White.
He said the meeting was an example of how the construction products industry could work together to find a solution to an important issue.
“No-one is saying to credit insurers that they should insure an uninsurable risk, but they need to understand the impact of their decisions, particularly when cover is being withdrawn on perfectly good companies.”
The Confederation of British Industry is taking the issue up with Cabinet business secretary Lord Mandelson.
Aon Trade Credit broker Alan Sarling told TTJ earlier this month that underwriters were panicking with their removal of cover for timber traders, who have expressed concern that all construction-related companies are being tarred with the same risk brush.
