<b>The insurance crisis means many housebuilders, along with other sectors of the construction industry, are facing massive premium hikes. Housebuilder reports on a scheme that could ease the pain for developers</b><br><b>Insurance horror stories within the construction industry are now commonplace as a combination of factors conspire to drive up premiums dramatically. Reputable and long-established businesses in the scaffolding, demolition and roofing sectors are facing premium rises of many hundreds of per cent whilst organisations with adverse claims records cannot secure cover at all. Terrorist activity, floods, rail crashes, spiralling reinsurance costs, plunging stock markets and the growing compensation culture have all conspired to cause soaring insurance premiums.</b><br><b>guilt on both sides</b><br>Colin Short, head of UK commercial underwriting for Royal &amp;&amp; Sun Alliance, blames both the construction and the insurance industries. &amp;“The UK construction industry has not, in general, been well managed,&amp;” he says. &amp;“Safety standards are often far too low and the level of accidents is unacceptable. At the same time insurers have been guilty of underpricing, as construction has always been one of the worst performing sectors.&amp;”<p></p><p>Insurance capacity is almost exhausted following the collapse of specialist construction insurers such as Builders&amp;’ Accident, Trinity Insurance and Independent Insurance and the withdrawal …