Builders to work with insurers to manage costs

The National Federation of Builders (NFB) has announced it is to work with the insurance industry to develop a benchmark for risk assessment.

Under the scheme, companies will register with Quality Mark and Constructiononline's Recognised Competency register.

Companies also have their health and safety policy assessed against the CHAS standard, financial probity audited by Capita and their management policy assessed by BM Trada.

NFB policy director Barry Stephens said: "Effective risk assessment is currently the shortest route to providing companies with affordable employers liability cover.

"Underwriters are calling on the industry to come up with the means of benchmarking firms and standardising that risk assessment.

"We are in a strong position to offer insurers a means of objectively evaluating a company's health and safety procedures, financial probity and management systems, enabling a more accurate assessment of the true risk they pose.

"This will allow underwriters to differentiate reputable, professional firms."

The announcement follows the federation's recent attack on insurance companies. The NFB was reported in The Telegraph as accusing insurance companies of deciding premium costs arbitrarily.