Construction Confederation fears that insurers are not meeting the 21-day notice period

The Construction Confederation will push the government for statutory renewal periods if liability insurers fail to meet the 21-day guidelines set down by Biba and the ABI.
The confederation confirmed this week that it had begun surveying its 5,000 members to find out if insurers were meeting the new guidelines.

The Biba/ABI initiative calls on liability insurers to provide businesses with at least 21 days' notice of renewal terms.

It also states that insurers who decide not to renew terms should extend cover if they fail to provide clients with 21 days' notice of their decision.

A confederation spokesman said: "We are asking our members to find out their experiences. We have begun informally canvassing members and we will begin a more formal process when we send out our newsletter in February."

The spokesman added that it was too early to tell what members' responses would be, but that the confederation would lobby the government for statutory rules if insurers fail to adhere to the Biba/ABI guidelines.

"If the 21-day rule is not followed we will push for changes to legislation," he said.

The Biba/ABI Statement of Good Practice came into effect on 1 November 2003.

The statement applies to both employers' and public liability insurance, including products where such cover is part of a package with other insurance. It states that brokers should pass renewal terms to policyholders "as soon as possible".

The ABI said: "Both associations [Biba and the ABI] are recommending that their members adhere to the new standards. The statement will reassure customers that they will have time to budget for proposed levels of premiums, or to 'shop around' if they wish to do so."