Asbestos Liability Insurance is a crucial requirement for many asbestos removal companies across Australia. Whether you're just starting in this field or you're already experienced, it’s essential to know what your insurance covers and how it protects you.

In this guide, we’ll break down the essentials of asbestos removal insurance, who needs it, and why it matters.

Most asbestos removal companies should consider the following types of insurance:

As you explore asbestos insurance options, you’ll likely come across two primary types of policies: **Claims Made** and **Occurrence**. Understanding these can help you avoid costly surprises down the line.

Claims Made Policies

A Claims Made policy covers you for asbestos-related work from a specific retroactive date. This means if a claim arises in the future for work done during the coverage period, you’ll be protected as long as the policy is active. For example, if you receive a claim in 2024 for work performed in 2011, and your policy's retroactive date goes back to 2011, you’re covered.

Occurrence Policies

An Occurrence policy is more straightforward. It covers you for incidents that occur while the policy is active, regardless of when the claim is filed. For instance, if you had coverage when an incident happened in 2011, you could still claim even if you no longer have that policy today.

Why Does This Matter?

Choosing the right type of policy is crucial, especially when considering what happens if you stop trading.

- Occurrence Policy: If you cancel this type of policy, you can still make claims for incidents that occurred while you were covered, as long as no further asbestos work is conducted.
 
- Claims Made Policy: If you cancel this policy, you are stating that no future claims will arise. If a claim is filed after cancellation, you won’t have coverage. For example, if you stopped trading in 2021 and received a claim in 2024 for work done in 2015, you wouldn’t be covered if you had cancelled your policy.

To maintain coverage after ceasing operations with a Claims Made policy, you need to switch to a Run-Off Cover. This ensures ongoing protection, but keep in mind that premiums may still fluctuate.

When Do Asbestos Removal Companies Need Professional Indemnity Insurance?

Professional Indemnity Insurance is essential for companies providing services like:

- Asbestos Clearance Certificates
- Sample Collection
- Sample Testing
- Remediation Recommendations

These activities often require additional coverage, and as the industry evolves, more services may also necessitate this type of insurance.

How to Get a Quote for Asbestos Removal Insurance

Obtaining asbestos removal insurance typically involves working with a business insurance broker, as many direct insurers do not cover asbestos removal companies. Here’s what you’ll need to provide for a quote:

- Basic business information (name, address, contact details)
- Estimated turnover
- Details of asbestos-related activities
- Any additional business activities (like combining demolition and asbestos removal under one policy)
- A copy of your asbestos license (if applicable)

How Much Does Asbestos Removal Insurance Cost?

While exact premiums can vary, here’s a rough estimate for budgeting purposes:

- Claims Made Policy: Typically ranges from $5,000 to $6,000 per year.
- Occurrence Policy: Generally ranges from $5,000 to $8,000 annually.

These figures provide a general overview; your specific circumstances may affect the final premium. Certain rating factors include things like your turnover, subcontractor usage, whether any other services are provided such as demolition works.

As you explore asbestos insurance options, you’ll likely come across two primary types of policies: **Claims Made** and **Occurrence**. Understanding these can help you avoid costly surprises down the line.

Claims Made Policies

A Claims Made policy covers you for asbestos-related work from a specific retroactive date. This means if a claim arises in the future for work done during the coverage period, you’ll be protected as long as the policy is active. For example, if you receive a claim in 2024 for work performed in 2011, and your policy's retroactive date goes back to 2011, you’re covered.

Occurrence Policies

An Occurrence policy is more straightforward. It covers you for incidents that occur while the policy is active, regardless of when the claim is filed. For instance, if you had coverage when an incident happened in 2011, you could still claim even if you no longer have that policy today.

Why Does This Matter?

Choosing the right type of policy is crucial, especially when considering what happens if you stop trading.

- Occurrence Policy: If you cancel this type of policy, you can still make claims for incidents that occurred while you were covered, as long as no further asbestos work is conducted.
 
- Claims Made Policy: If you cancel this policy, you are stating that no future claims will arise. If a claim is filed after cancellation, you won’t have coverage. For example, if you stopped trading in 2021 and received a claim in 2024 for work done in 2015, you wouldn’t be covered if you had cancelled your policy.

To maintain coverage after ceasing operations with a Claims Made policy, you need to switch to a Run-Off Cover. This ensures ongoing protection, but keep in mind that premiums may still fluctuate.

When Do Asbestos Removal Companies Need Professional Indemnity Insurance?

Professional Indemnity Insurance is essential for companies providing services like:

- Asbestos Clearance Certificates
- Sample Collection
- Sample Testing
- Remediation Recommendations

These activities often require additional coverage, and as the industry evolves, more services may also necessitate this type of insurance.

How to Get a Quote for Asbestos Removal Insurance

Obtaining asbestos removal insurance typically involves working with a business insurance broker, as many direct insurers do not cover asbestos removal companies. Here’s what you’ll need to provide for a quote:

- Basic business information (name, address, contact details)
- Estimated turnover
- Details of asbestos-related activities
- Any additional business activities (like combining demolition and asbestos removal under one policy)
- A copy of your asbestos license (if applicable)

How Much Does Asbestos Removal Insurance Cost?

While exact premiums can vary, here’s a rough estimate for budgeting purposes:

- Claims Made Policy: Typically ranges from $5,000 to $6,000 per year.
- Occurrence Policy: Generally ranges from $5,000 to $8,000 annually.

These figures provide a general overview; your specific circumstances may affect the final premium. Certain rating factors include things like your turnover, subcontractor usage, whether any other services are provided such as demolition works.

1. What is the difference between Claims Made and Occurrence policies?
Claims Made covers you based on when a claim is made, while Occurrence covers incidents based on when they occurred, regardless of when the claim is filed.

2. Do I need Professional Indemnity Insurance?
If you provide specialised services like testing or remediation recommendations, Professional Indemnity Insurance is recommended.

3. How can I get a quote?
Contact a business insurance broker with your business details, turnover, and specifics about your asbestos-related activities.

4. What factors affect the cost of my insurance?
Factors include your business size, turnover, types of services offered, and claims history.

For tailored advice specific to your situation, don’t hesitate to reach out. Understanding your asbestos liability insurance is key to protecting your business and ensuring compliance in this high-risk industry. At Priority Insurance Brokers we are a thorough understanding of the asbestos, demolition and hazardous waste industries.