What insurance does a contractor in Sint Maarten need?

Key facts

Which policies do contractors in Sint Maarten usually look at?

They usually look at several, because a building project can lead to several different kinds of claim: a passer-by or neighbour hurt near the site, damage to the client’s property, an injury to one of your own workers, theft of tools from a vehicle, or a storm that damages work in progress. Each is dealt with by a different policy, and none covers everything. Terms differ between insurers, so these are points to discuss.

• Injury or damage to other people: general liability insurance is designed to respond to certain claims that your work caused injury or property damage to a third party. Public liability insurance looks at the same question from the point of view of people who come into contact with the site.
• Your own crew: workers’ compensation insurance relates to injury or illness connected to work. Ask how casual workers and subcontractors’ staff are treated.
• Vehicles: commercial auto insurance applies where vans, pick-ups and trucks are used for the business, and a personal auto policy may not respond when a vehicle is used for work.
• Tools and equipment: property insurance can address theft, fire and storm damage to equipment and stock. Ask about cover on site and in vehicles.
• Design, advice and specifications: professional liability insurance relates to claims that advice or design work was negligent.
• Works in progress: some insurers offer cover for the works themselves while they are being built, often called contractors’ all risks or construction cover. Availability and terms vary by insurer and project.

What do contracts and clients ask for?

Clients, landlords and project owners often ask for proof of cover, and many contracts say what cover the contractor must hold, in what amounts and whether the client must be named. Reading these clauses before signing, and asking an advisor to explain the insurance terms, can avoid delays when a certificate is requested. Where a contract uses a legal term you do not recognise, a legal adviser can explain it.

What will an insurer ask a contractor?

• The trade or trades, and the type of project, for example renovation, new construction or repairs.
• The height or depth of the work, and any demolition or hot work.
• The number of staff, the use of subcontractors and their own insurance.
• The value of tools, plant and equipment, and how they are stored.
• Annual turnover or contract values.
• Any previous claims or losses.

What should a contractor check before a job starts?

Check the contract’s insurance clause first, then the policies against it. A short checklist:

• The contract’s insurance requirements are written down and understood.
• Your liability limit is at least what the contract asks for.
• Subcontractors have their own cover, and you hold evidence of it.
• Your crew is covered under the arrangement that applies to your business.
• Tools and equipment are listed, with serial numbers, and cover applies on site and in vehicles.
• You know how materials and unfinished work are treated if a storm is forecast.
• Certificates for the client can be produced quickly.

How does hurricane season affect work on site?

The Atlantic hurricane season runs from 1 June to 30 November. Contractors often review how materials, scaffolding and unfinished work are secured when a storm is forecast, and what the policy requires. Some insurers limit changes to cover while a named storm is forecast, so it is better not to leave questions until the last moment. The hurricane insurance page explains how policies may treat wind, flood and storm surge, and the risk management page looks at reducing risks as well as insuring them.

Does it matter whether the job is on the Dutch or the French side?

It can. Insurers, rules and supervision differ between Sint Maarten and Saint-Martin, and contractors who work on both sides, or on a neighbouring island, may want to ask where each policy applies and whether any jurisdiction limits exist. The guide on insurance on the Dutch and French sides explains what Enterprise Insurance can and cannot arrange.