Construction Companies please review your insurance for Brexit

As companies across the UK make final preparations for leaving the EU, now has never been so important for construction companies to have the correct construction insurance cover in place.  Supply chains, labour and contracts are three main areas of focus, which should be closely reviewed by businesses.

Liability aspects which construction companies should consider

Supply Chains – Leaving the EU without a deal would mean that the UK would trade under the World Trade Organisation (WTO) terms. This could prove costly for construction companies, especially those with low profit margins. It is key for companies to plan where costs may rise following Brexit and then decide how to counteract the cost. Rising the price of goods or looking for an alternative supplier could help the situation.

Labour – For some time, the UK labour market has relied on a low skilled EU labour workforce as a source of supply in their production process. However, post Brexit, it is anticipated that the UK will look to attract more higher skilled workers from the EU into salaries of over £25K.  This means that with a gap in the market for lower skilled workers, construction companies operating in the UK will need to look more closer to home, for a labour workforce such as bricklayers, electricians and plumbers. Subsequently it is hoped that this new structure will encourage more young people into apprenticeships and training programmes for the future.

Contracts – Businesses will especially need to look at existing and forthcoming contracts with Brexit in mind. Extensions on time and recovery for loss of expenses should be reviewed. Clarification around timing and delivery on projects will be key, whilst flexibility to terminate a contract may also be required. Exclusion for liability of damages should also be considered, and both parties within a contract should look to minimise exposure in mitigating any loses which may arise.

Finally, here at JRW Risk Solutions, we urge all construction companies across the West Midlands and the UK to double check their existing insurance policies, to confirm if they have the correct insurance covers in place.

With Brexit as a primary focus, JRW Risk Solutions provide a range of insurance cover options to suit construction companies and contractors of all trades. For further information on protecting your construction business over the coming months, in terms of construction insurance and for a no-obligatory confidential review of your business, please contact our team at or see our website for more details.

You can find out more about guidance for businesses via the GOV.UK website –

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