Construction and Builders Insurance Australia

Construction Insurance provides protection for builders during the period of construction and for your broader business activities as a builder. It is an essential form of protection to ensure your assets and liability are properly insured.

What is it?

A comprehensive Construction and Builders Insurance policy provides protection for assets during the construction period and protects your business against any legal liability claims which arise as a result of the construction project.

Who needs Construction and Builders Insurance?

Any contractor or builder that is responsible for carrying out works on site should consider a Construction Insurance policy that provides Contractors All Risk coverage. This is to ensure you are protected for any loss or damage to your assets that are on-site during the construction period.

What is covered?

A Construction Insurance policy is generally provided under 2 sections.

The first section will cover your assets and property during the construction period. This includes accidental damage, theft or loss of on-site materials including building materials, tools, plant and equipment during the construction period.

Key benefits which can be included under the property section of your construction insurance policy include:

extended cover to included loss or damage to property whilst in transit or in off-site storage

extended period of insurance to include testing and commissioning cover

include cover for value of materials supplied by the principal over and above the contract value

extend cover to include existing structures which are located at the site prior to work commencing

broad definition of contractors plant, tools and equipment

additional sum insured benefit for variations and escalation costs including inflation costs.

removal of debris where necessary following an insured event

professional fees incurred to reinstate the damaged property

Management Liability

The second section will cover your legal liability for any claims which are made against you as a result of your construction activities. A comprehensive construction insurance policy will also extend to cover completed operations liability which ensures you are protected for any legal liability claims which arise once you have handed over the work.

It is important to ensure your Construction Insurance extends to include the following forms of legal liability:

Public Liability claims arising out of your construction project and business activities

Products Liability for personal injury and / or property damage claims which arise out of your Products supplied, sold or manufactured

Vibration, Weakening or the Removal of Support for personal injury and/or property claims caused by these factors

Liability or Property in your Care, Custody or Control

Extension of your legal liability insurance to include contractors or sub-contractors where required

What's not covered?

A Construction Insurance policy does not cover the following:

Equipment Breakdown

Wear, Tear, Corrosion and Deterioration

Goods shipped by sea

Incidents or claims known prior to the policy commencing

Business conducted in the USA / Canada unless agreed in writing

Injury to your employees which is workers compensation insurance

Claims arising from a professional services or advice (see Professional Indemnity)

Claims made against directors and officers (see Management Liability)

Claims arising from your digital network / data breach (see Cyber Insurance)

Claims arising from intentional acts

Your business becoming insolvent

To get a quote that provides you with the right cover it's important you speak with a Construction and Builders Insurance expert who can advise you how best to design your Contractors All Risk Insurance.