What Insurance does a Builder need?

You have built your business from the foundations up to the roof trusses, but what insurance does a builder need?

Insurance for builders is highly recommended and can be purchased for specific projects or be included in an annual policy to cover all work undertaken within the year. Each policy reflects the individual needs of a project, so using an insurance broker can take the guess work out of your coverage.

Insurance Web can discuss with you the level of insurance needed to protect your business against losses from material damage, property damage and personal injury. Give the team a call today on 1300 956 233 or enquire online here to find out we can help you.

Who is protected by QBCC home warranty insurance?

Residential building work done in Queensland valued over $3300 (including labour and materials) must obtain home warranty insurance. Generally, the builder pays a premium to insure the construction.

The amount is included as part of your contract, and is paid before work begins. It only protects the property owner where:

A licensed builder does not complete the contracted residential construction work and you have terminated the contract.
The contractor fails to rectify defective work.
The building suffers from subsidence or settlement.

Public liability insurance – what does it cover? What is it?

All builders require Contract Works Insurance, even as an owner-builder. There are two sections of cover under Contract Works insurance:

Section one – Material damage covering property damage at the building site.
Section two – Public liability covering damage or bodily injury to a third party.

What other insurance do builders need?

It is best that a builder looks at a whole picture in relation to their insurance program. The Contract Works Material Damage and Public Liability insurance is one part of an overall program.

However, a savvy builder will investigate:

Cover for tools and equipment left on job sites.
Cover for hired plant and equipment.
Cover for motor vehicles and unregistered plant and equipment.
Cyber event protection Insurance.
Contractual liability Insurance.
Professional indemnity cover if the builder office also incorporates design and drafting services (regardless of sign off by architects and engineers).
Management liability cover including Directors and Officers cover, employment practices and statutory liability.

With particular insurers the contract works policy can also be extended to include:

Contract of sale extension
Consequential loss
Contractors pollution liability
Difference in conditions
Display homes
Errors and omissions
Existing structures
Financiers interests
Liquidated damages (for residential builders)
Owners contents
Overseas risks (supporting business domiciled in Australia)
Partially completed projects
Principal supplied materials
Property in care, custody or control

How do I get insurance as a builder?

It’s as easy as organising a face-to-face meeting with Insurance Web or we can chat over the phone. Call us today on 1300 956 233 or contact us online here.

Even if you already have insurance, we can complete an obligation free needs assessment to determine whether the type and level of cover you have is appropriate for your business.