Steve Rockingham - Firm foundation

Describe your company?

Stephen Russell Construction is a medium-sized building contractor that was established in 1979. The company is based in Aylesbury and handles residential, commercial and industrial projects.

- What premises and staff do you have?

We have a head office with six people who are based here usually, plus site managers located in the site office of each of the four or five projects that we have going on at any one time.

- What is your annual turnover?

It varies from year to year but is £1.5m to £2m typically.

- How long have you worked with your current broker for?

We have been dealing with a broker that is an Appointed Representative of Ten Insurance Services, so in terms of that company, about a year. Our connection with the people there, rather than the corporate entity, goes back to the early 1990s.

- What types of policy does your company need?

First of all, we have contractors' all-risks, including employers' and public liability cover; we have an office contents and a motor fleet policy as well.

- Which covers would you like to add?

We would like a legal expenses policy for contract disputes but in the past this hasn't been viable financially, although my broker tells me that this might be about to change.

- Have you made any claims recently?

Touch wood, not for three or four years, apart from occasional motor claims that were always the other party's fault.

- Please explain one in detail?

The last claim we made involved the theft of a generator from one of our sites. The broker dealt with it completely. We rang them up the morning after it happened and their people came down with the claim form, filled it in with us and sent it off to the insurer. We were paid fairly promptly after; they made it really easy for us.

- Does it matter if your broker discloses their commission to you or not?

No, I am interested principally in how much my insurance costs for this year as compared to last year. After the events of September 11, 2001, everything more or less doubled at the next renewal, which was a bit of a shock but I understand the reasons why. Since then, the costs have gone down steadily and we are back now to paying what we were in 2001.

There are not many things that still cost our business the same as they did seven or eight years ago and I attribute this to the fact I use a broker, which is presumably not making any more out of me now than it did back then.

- Do you want to know?

No, I can be satisfied only that, towards the end of the decade, I am still paying what I paid at the start of it. Everybody has to earn a living and everybody has overheads. I wouldn't want to disclose what I think my margin is going to be as part of every quote that I issue, so I don't expect that from my broker either.

- What challenges are facing your company in the current economic climate?

Since the Northern Rock situation came to light, the residential side of the business has come to a grinding halt over the last few months, with projects being shelved right, left and centre. There is still local authority and NHS work around, though as all of the previously residential-only builders are now seeking refuge in that direction, it is becoming very competitive out of necessity.

We experienced much the same thing 16 to 17 years ago; we weathered the storm then and I'm sure we will manage to do so once again. It is pretty horrible at the moment, though.

- Has the introduction FSA regulation been of benefit to your business?

Northern Rock. Thanks.