Is it just Insurance Blog or has the whole country gone mad building things?
From the amount of adverts for insurance for builders and tradesman that flood the TV intervals and blast across the radio airwaves during events like football, one could be easily mistaken to believe that the UK was in the midst of some great housing and construction boom where everyone has suddenly put on a yellow plastic hat, white overalls and bought a white van!
“Don’t forget your public liability!” is the battle cry to the Sun reading hoards.
Now don’t start on me, the latest Direct Line advert for combined Builders Liability and Van insurance has employed what would only have been described in the 17th Century as the Village Idiot in the starring role.
Stereotypes such as those used by Aviva in its regional ads featuring Paul Whitehouse were bad enough! Every village has an idiot and these days lots of cowboy builders< do exist - we all at some time have met, or to our detriment employed a builder called Steve, but even in the 17th century Builders (Masons) were far from idiots!
So why the sudden rush and millions of pounds spend in advertising builders insurance, to build up a book of insurance in a sector that is actually shrinking in size and contributing to the 8.7 milion pool of unemployed!
The housing market is stagnant, the shelves of the big out of town DIY centres are full and everything is on offer, planning applications now only fill a small space in the local paper, land with agreed planning permission for building is standing idle as set aside full of pretty spring wildflowers, its very difficult to get a home improvement loan and the UK’s credit rating has just been downgraded.
So why are all the big insurers after this market? Perhaps because they have learnt to their cost that managing a business liability book and a motor book at the same time is much more costly and uncertain than they had anticipated!
Was it not Liability claims losses that were recently blamed by everyone for the rising cost of car insurance?
“Higher Car Insurance Premiums Anyone?”