The National Register of Warranted Builders (NRWB), a subsidiary of the Federation of Master Builders (FMB), is offering a new risk management product that protects all FMB members against increased costs resulting from extreme weather.
All FMB members that buy the financial cover receive an automatic payout if they are unable to work due to severe frost or excessive rain.
The product has been developed in response to the financial losses suffered by members during recent severe weather events and especially the past two UK winters which were among the coldest in recent history.
Building and Allied Trades Joint Industrial Council (BATJIC) guidelines suggest that when work is temporarily stopped due to adverse weather, the guaranteed payment must still be made to employees. This can place a financial strain on construction companies, especially as they continue to suffer the effects of the economic downturn.
The cover is being offered in conjunction with weather risk management expert CelsiusPro, reinsurer Swiss Re, and Aon Benfield Securities, the investment banking subsidiary of Aon Corporation. After having successfully launched the product in collaboration with the Dutch construction association Bouwend Nederland in October 2010, CelsiusPro is now offering the opportunity for British construction companies to benefit from using the cover.
“In developing this product we listened to feedback from our members about how their businesses and finances had been affected by periods of extreme weather,” said David Hill, Director of NRWB. “It seems that the weather is becoming more unpredictable in the UK, and perhaps all over the world, and this cover helps to ease the burden of lost earnings at times when our members and their employees are unable to work due to adverse weather conditions.”
Stuart Brown, Swiss Re Head Origination APEMEA, added: “From construction to food production to power generation, the weather impacts people and business, and those who don’t have weather cover can find themselves in financial difficulty when they are unable to work for extended periods. In close collaboration with our partners, we developed this innovative solution that means all FMB members no longer have to worry about lost earnings during a disrupting weather event.”
Working alongside the FMB, Swiss Re, CelsiusPro, and Aon Benfield Securities are pleased to be able to contribute to support the financial stability of the UK construction industry.
Source : Aon Benfield Press Release
