Rome wasn’t built in a day, and neither were Australia’s cities and towns. Right across the country, construction firms, builders and tradies are working hard every day to ensure the country’s built environment is fit for purpose, whether that’s keeping a roof over a family’s head or supporting the country’s commercial heavyweights.
Construction projects take time, and from the very first shovel-full of earth, there’ll be specific risks that need to be managed and insured against. For everyone involved in the sector, having the right levels of cover is essential for ensuring their projects are protected.
At Trans-West Insurance Brokers, we work closely with the insurance and construction industries to make sure our building clients have the right levels of cover in place.
There’s a number of risks that any builder will need to insure against as they’re working on a project, no matter its scope. There are very real hazards for a construction project, including fire or theft of materials from your building site. All of these challenges can derail a project’s timeline and budget, so they need to be insured against.
A typical package of cover that we will arrange for builders is a contract works policy, which comes with two core parts:
Material damage cover
This is designed to protect your building work from damage during the construction process.
A good example here would be a fire on site, which damages your building work and requires large sections of the project to be rebuilt. Likewise, any storm damage, hail or lightning strikes that lead to a fire and cause material damage will be covered.
Public and product liability
Even the most experienced builders know that there are risks involved in their work to the public and to subsequent tenants or homeowners. This is why public liability insurance is mandatory for any builder before they set foot on-site.
Product liability can also give you longer-term financial protection for any issues that arise after a project is completed. Say, for example, if a home has a decking that years after construction collapses and injures people. A product liability policy will provide cover up to seven years after completion of the building to protect you against any issues arising here.
Builders warranty insurance
Builders warranty, or HBCF insurance, is mandatory for every building project in NSW, where the project cost is greater than $20,000. Any project of this size or greater needs a builder’s warranty certificate, and this cover then means that if you as a builder become insolvent or cease trading, the policy will assist with covering the cost of another builder picking up and completing the project.
Each insurer that we work with will have their own exclusions or specifics to their policies, so it pays to give some thought to the common issues you might encounter and the cover you’ll need for these.
Choosing to work with a broker here rather than going straight to an insurer can help to ensure you have the right cover from across all the possible providers.
A good example here is the risk of asbestos being found on a building site, especially if you’re taking on a major renovation or brownfield redevelopment. Some insurers will exclude asbestos which, depending on your project, could leave you at risk.
On the other hand, some insurers won’t provide cover for product defects. That’s why working with an insurance broker like Trans-West ensures you have the right construction insurance for your needs.
At Trans-West, we’ve built a reputation for working with builders to make sure they have the right levels of cover for their needs. We’ve partnered with builders on projects of all sizes, so we know what it takes to get the right insurance cover for the building work you’re taking on.
We’re also one of only 24 brokers licensed to offer builders warranty insurance in NSW and our team are experts in the nuances of cover that builders need to secure as they embark on a new project.
So, if you’re preparing for a new project and need to get the right insurance cover in place at the right cost,contact our team at Trans-West Insurance Brokers today.
Located in New South Wales
Trans-West Insurance Brokers Pty Ltd
79 Bathurst Street Liverpool
NSW 2170 Australia
Ph (61) 2 9601 7166 Fax (61) 2 9821 2010