Making sure your NDT business is covered!
Contributed by Emma Gaynor
Making sure your NDT business is covered

The NDEIT’s core business is to provide you with the best possible training in NDT, to make sure that you can go out into the wider world and apply that training in a safe and accurate manner. Many of the people who undertake our courses are business owners: engineers, consultants, technicians. NDEIT offers Level III services that are aimed at business owners to help them with the requirements that would be essential in running a business with interests in NDT, from managing personnel, to procedures, to establishing the company’s written practice. With this in mind, it is in their own interest to have the appropriate required certification, and to have the appropriate insurance to cover their commercial activities. Accidents do happen, so insurance should take a top priority to make sure a business doesn’t go under because of not having the right paperwork.

Insuring your NDT business

The 2013 Nondestructive Testing Management Association (NDTMA) Conference included a presentation about insurance policies in the context of NDT contract work. The presentation, delivered by Mark Tedford of Tedford Insurance, highlighted the elements of contract insurance that NDT professionals should be looking out for to cover their own liabilities, such as the wording of policy documents and understanding the nature of the contracts from the insurer’s perspective, as well as providing a list of questions that companies with interests in NDT should be asking of their insurance broker in negotiating an appropriate contract. The presentation also considered some of the more awkward aspects of obtaining insurance for contract work, such as the need to have an attorney sign off on it when an attorney is not a risk management professional, and the availability of appropriate insurance and understanding the wording used to make sure it is appropriate. The presentation also took a look at the responsibilities of all parties involved in obtaining the right insurance contract for the NDT job at hand.

Finding your policy

Many of the major recognizable names in insurance offer business insurance, beyond business practice needs, but also into the more physical aspect of the engineering and related businesses such as NDT. There are also industry-specific companies offering tailored products for particular related jobs. Some consultancy firms offer guidance in to help you wade through the mass of terminology and paperwork that is needed to ensure that you have met all the compliance requirements needed to get your business insured. Examples of business insurance you might want to consider would include insurance on your facilities and equipment, as well as interruption insurance. Of course, you can’t run your business without staff, and in a business that may required site visits, it makes sense to make sure that you are covered against any risk or accidents.

One such consideration for companies involved with NDT and engineering in Trinidad and Tobago might be climate change. The effects of climate change on such industries were recently highlighted by Professor John Agard from the Faculty of Science and Agriculture at the University of the West Indies. Speaking recently at the Inter-American Development Bank (IDB), Prof. Agard in particular mentioned Trinidad’s energy-based economy, with many companies having structures off the coast mining for the country’s oil and gas, and all of whom will have NDT at the core of their activities. Prof. Agard noted the impact climate change can have on their structures, and advised that the companies running mining operations invest in safe-guarding their property and equipment against the damage of climate change. It stands to reason that part of this investment could include insurance: damaged equipment could lead to an interruption in work, causing a delay in agreed deadlines; therefore a company would need to have interruption insurance in their contract, to protect against indemnity.

With the general importance that stakeholders should have in looking after their business, it’s important to make sure that they look after the investments they’ve made into property, equipment and people by having the appropriate insurance contracts to cover them in the face of any potential liability. In the case of companies managing NDT, this requires very specific points of consideration in negotiating their insurance contracts. NDEIT can help business owners and stakeholders manage the paperwork required for compliance with insurance policies.


Call us today for more information.

NDE Institute Of Trinidad Ltd.

15 Robertson Street,
Les Efforts East,
San Fernando,
Trinidad, West Indies
Tel/Fax: 868-657-6572 or 868-653-9343
Cell: 868-753-4510

email me