Builders have a number of considerations when organising their business insurance. As you’re usually the principal contractor on jobs, there are often extra responsibilities that go along with this — organising subcontractors, insuring the project for material damage, and state-based warranty cover for projects over a certain value. At Go Get Insurance, we understand Builders and their requirements. In this article, we’ll run through what you need to know.
This should be the first cover consideration for any tradie. Public and Products Liability Insurance protects you against accusations of negligence causing property damage or personal injury to a third party in the course of your business. Builders have a big exposure in this area, as they are often the principal contractor, responsible for an entire site of tradies and visitors, and can be potentially liable for any injuries or damages occurring to these people on site.
It’s important to note that there’s no limit on the amount that someone can sue you for, and in today’s society, people are suing first and asking questions later. You could simply get dragged into a problem, too, something you might think had nothing to do with you — fact is, simply defending an allegation of this nature could run into the tens of thousands in court costs and legal fees. This is why it’s critical for any Builder to have a Public and Products Liability cover.
Check out Go Get Insurance’s Public and Products Liability Insurance for Builders for a competitive quotation, offering excellent coverage.
Depending on the size, type and amount of contracts a Builder has on the horizon, extra insurance covers offering a broader level of protection as follows might be required.
Another important consideration for Builders is the risk of Material Damage on their site. This cover refers to the damage of the project being constructed. Examples include malicious damage, fire and storm damage, and theft of site materials.
If you’re the builder and principal on a job, have a contract directly with the owners, and construction permits have been issued to you (not owner builders), then chances are this will be a very real exposure for you to consider.
Ask yourself what would happen if, halfway through a $100,000 extension, everything was burnt to the ground by a fire – who’s responsible? If you’ve organised everything to that point, the owners will be asking you the question. Can they claim it on their home insurance? Had you discussed it with them prior to this?
Builders need to be aware of these potential exposures, and at the very least, have communication with their clients about cover options.
Depending on the state you are building in, you might require a letter of Eligibility to obtain your licence. This Eligibility, in turn, allows you to take out Warranty Insurance for individual jobs.
This insurance provides homeowners with cover for incomplete or defective building work.
Depending on the size and type of contracts you undertake, risks you need to consider are:
GoGet Insurance offers a quick and cost effective Public and Products Liability Insurance for Builders that provides an excellent level of cover.
Contract Works, Eligibility and Warranty Insurances have a different application process that can be difficult to capture online, so for assistance with these covers, please click here.
An important consideration for Builders is protecting your own income and tools of trade. Ask yourself what would happen if you sustained an injury or illness, and were forced off work for a few months? What if all of your tools were stolen or damaged in a fire?
Your ability to keep trading and the funds rolling in could be severely diminished in any of these examples. Protect yourself with quality products like Go Get Injury & Illness and Tools insurance, so if disaster strikes, you won’t have to rebuild!
Go Get Injury & Illness Insurance is Annually Renewable and factors General Advice only. A Guaranteed Renewable policy, which can provide a benefit period up to age 65 (which does impact on the premium), requires personal advice taking your individual circumstances into account. Should you wish to consider the greater level of protection and flexibility that a Guaranteed Renewable policy provides, click here.
Depending on your Business structure and location, you might require Workers Compensation Insurance if you’re a Company, Working Director, or have deemed Employees. Please check your State Government requirements to ascertain this information.
Please read the PDS for full details on policy coverage, conditions and exclusions to ensure a full understanding of the product you are purchasing