Whether you are building a residential apartment complex or a tilt-slab factory unit complex, it is important to ensure that you have the right insurance for you business.
CONTRACT WORKS INSURANCE
part A - Material Damage
The material damage part of the policy is intended to cover damage to a project whilst the project is under construction. Whether this is a bushfire, storm, flood or theft from the site, the intention is to ensure that you and your customer do not have to repay for the cost of materials to rebuild the project to where it was at prior to the event occurring.
It is possible (though not always included) to also cover your tools whilst on site and your mobile plant / hired in plant (like excavators or EWPs) on the project site, this cover is known as minor plant (tools) and major plant (excavators etc). If you require cover for tools or plant, you should check you have sufficient Minor or Major Plant sum insured. This often replaces a general property policy that you may have taken with your trades insurance package. It is important to check the Geographical regions of the minor or major plant cover if this is important to you as some policies only cover at the site whilst others will cover you Australia Wide.
Part B - Liability
The liability section of the policy replaces your trades public liability policy. There are a number of common exclusions within a trades or business insurance package which may include
Height Limitations or Restrictions - Usually in the exclusions of a tradesman package, you are not covered for loss or damage when you are working above ___m where ___ could be 6, 8, 10 or 12 meters.
Hot Works Exclusions - Welding, Flame Cutting, Torch Lamps, Hot Air Guns and Soldering Irons are some of the types of activities often excluded by a Trades Insurance Package under the Hot Works Exclusion.
Depth Limitations - Usually 2 or 4 m in depth will be excluded under a trade pack
Vibration and Weakening of Support Exclusion - A common exclusion in a trades or business package but can be easily covered in a contract works insurance package.
PROFESSIONAL INDEMNITY Insurance
Many larger contracts require the builder to obtain and maintain professional indemnity insurance cover. In some contract works policies, it is possible to also add cover for incidental professional indemnity such as a claim arising from incidental project management services or an accidental change to the building ‘plans’. Such services, errors or omissions are often excluded by trades packages, business packages and some contract works policies. It may also be possible to provide you with a stand-alone incidental professional indemnity insurance policy. Contact our office for more information.
Trade Credit Insurance
For many businesses, their largest asset is their unsecured debtors; the money owed to them by their customers. With trade credit insurance you can protect these assets against your customer becoming insolvent, failing to pay or refusing to make payment within your credit terms.