As the deadline for registration with the Builders Board looms, one industry stakeholder has said that as much as 80 percent of contractors are not registered.
Don Kissoon, the Insurance Manager at FIS Insurance said, “Consequently, we delved into why they weren’t members. They said that the insurances that were required to register with the board are too expensive for them.”
Mr. Kissoon said the situation is impacting many small contractors.
Checks with the Builders Board page on the Department of Planning’s website show there are five categories of contractor, four of which require insurance to the tune of $1,000,000. The remaining category requires $200,000.
“Because the smaller contractors don’t have the volume of work, they can’t afford the premiums. And it’s a chicken and egg situation because without being board registered, then they can’t get the work and they can’t have their work certified by the planning department,” said Mr. Kissoon.
Mr. Kissoon and Mr. David Flint,, who are connected with the insurance industry, said the solution lies in presenting smaller contractors with an affordable insurance.
“A gentleman, when we asked him last week about the insurance, called up to say last week he was a one man band. Because he has the insurance now and joined the board, he now has five employees and he has a contract in the region of $250,000,” Mr. Flint told Cayman 27.
Mr. Kissoon said when surveyed, most of the smaller contractors were able to afford a premium of $700 per annum.
The two men have said they are able to assist those who are seeking cheaper insurance options as the registration deadline approaches.