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Essential Covers For Licensed Builders

Like larger businesses, licensed builders and contractors need various insurance covers to protect them and their work. Each state has minimum regulations set out for its licensed builders, which require them to hold certain policies in order to work in that state. Even beyond the minimums, it’s important for licensed builders to have the right kind of coverage to protect them in case any problematic incidents take place.
 
Liability
Construction can be dangerous work with inherent risks involved. A licensed builder should be sure to have liability coverage to protect them in case someone is injured at the worksite or if damage occurs to others’ property.
 
Contract Works
This insurance is a necessity for licensed builders. Essentially, contract works covers construction projects in progress, protecting against any possible loss such as through theft, or damage through storm or fire, among others. It’s important to select a policy that covers all aspects of a project, including materials and tools. Policies vary widely in their coverage, so a qualified insurance broker can help you choose the right one for you.
 
Warranty
One statutory cover required for licensed builders is Builders Warranty Insurance, known also as home warranty insurance. This type of policy covers the owner of the home in the event that the builder fails to finish the contracted project for reasons such as death, bankruptcy, or the builder’s disappearance. The requirements for builders warranty insurance differs among states and territories. In NSW, for instance, this insurance is required only when a building project cost exceeds $20,000.
 
Tools
Policies covering tools and equipment can be a great asset to the licensed builder. You can’t complete your work without your tools. This cover protects your equipment and tools in case of theft or damage, allowing you to continue your work unhindered.
 
Vehicles
Licensed builders also need special coverage for their vehicles; transporting themselves to and from worksites often alongside equipment. Policies for businesses or tradies can differ from basic motor vehicle insurance policies, so an insurance broker can assist you in understanding the details of coverage.

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Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.

Licensed builders also need special coverage for their vehicles; transporting themselves to and from worksites often alongside equipment. Policies for businesses or tradies can differ from basic motor vehicle insurance policies, so an insurance broker can assist you in understanding the details of coverage.
 
Workers Comp
If you hire any workers in your contracting projects, you must, by law, possess a workers compensation policy. This will protect your business in case one of your employees is injured on the job or suffers an illness as a result of workplace conditions.
 
 
Navigating the waters of insurance for licensed builders can be tricky. Why make the process more complicated? Macey Insurance Brokers can light the way for you. By working with an experienced insurance broker like Macey’s, you can better understand the coverage you need and determine the right policies for your specific requirements. We have expertise in the area of covers for licensed builders, and we’ll ensure you are well-covered. This will give you great peace of mind as you head out to work every day. Contact us now to set up an appointment.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Brendan Goddard, Macey Insurance Brokers, ABN 92 003 364 065, AFSL 240 922

This article originally appeared on Macey Insurance Brokers Blog and has been published here with permission.

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