Some insurance premiums have risen by more than 100% in the industry according to a Construction Products Association (CPA) survey.
Employers liability has seen a 123% hike, and product liability a 119% rise. Buildings and professional indemnity have risen by 77% and 74% respectively.
CPA industry affairs director John Tebbit said: “Not only has there been an unprecedented rise in insurance premiums over the past year, but cover is less extensive, renewal notices are sent at short notice and there are fewer insurance companies willing to quote, forcing some sector trade associations to consider developing sector specific schemes for their members.”
British Woodworking Federation director Richard Lambert said: “Last year the collapse of the Independent Insurance company, September 11 and the collapse of the equity market resulted in insurance companies trying to get out of all the things they didn’t like doing which has led to less capacity so prices have really jumped.
“Construction companies and builders were the first to be hit hard but it didn’t start to filter through to our members until the autumn and now they are experiencing substantial rises.
“The Construction Confederation is talking about developing a scheme for its members – it is a classic thing that trade associations should be looking to do for their members.”
Stephen Ratcliffe, chief executive of the Construction Confederation, confirmed that his organisation is in dialogue with insurance companies about ways in which they can differentiate between good and bad risks.
Paul Martin, director-general of the Timber Trade Federation, said: “We share the CPA’s concerns and support their aims. We are exploring the possibility of sector specific schemes for our members and hope to be able to do something.”
