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Insurance for Demolition Contractors
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Getting insurance for demolition contractors can be difficult across all forms of insurance such as public liability, truck insurance, and plant or equipment insurance. Most insurers want to know how much exposure they have to demolition work before considering to offer an insurance policy.
As an insurance broker who has provided demolition insurance policies for businesses right across Australia, we have compiled a guide to make it easier to understand your insurance requirements.
As an insurance broker who has provided demolition insurance policies for businesses right across Australia, we have compiled a guide to make it easier to understand your insurance requirements.
Public Liability Insurance for Demolition Contractors - it's a licensing requirement.
If you hold a demolition license with Worksafe QLD, SafeWork NSW or the Victorian Building Authority then it is a requirement that you hold public liability insurance which stipulates that your insured activities state "demolition" on your certificate of insurance. Proof of insurance will be requested when you apply or renew your demolition license. They will also usually require you to have workers compensation insurance if you have employees.
Why do you need Public Liability Insurance for Demolition Contractors?
Although demolition work is usually quite safe when guidelines are followed, public liability insurance is required because this provides cover to the general public for personal injury and property damage. This means that should an event occur where someone of the public is hurt then the costs associated with this injury will be covered by your insurer.
Some of the common claims that we have been involved with are for things like debris flying away and piercing water tanks of neighbouring properties and injuries to other contractors on site or even pedestrians walking past the site.
How to get a quote for demolition liability insurance?
It is strongly recommended that when looking to get a quote on public liability insurance for demolition work that you speak with a broker who understands the demolition industry. Demolition insurance policies will usually have strict conditions and endorsements that you need to be aware of. We work with business owners to understand a holistic overview of your business. This allows us to look for opportunities to provide cost effective policies while also providing you the advice to make decisions about your cover.
On most occasions, we can usually get you a quote within a 1 day turnaround time however, if your business is involved in multiple activities it may take a couple of days for a competitive quote to be provided.
How much liability insurance do I need?
How much liability insurance do I need?
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Daniel Ufer
Most insurance policies will either offer a $10,000,000 or $20,000,000 Public Liability limit. There is a cost difference between the two however, $20,000,000 is quickly becoming the industry standard. For most licensing requirements the minimum amount required is $10,000,000 of public liability cover however, some head contractors will only accept $20,000,000 cover. Depending on your personal circumstances and the type of work that you are exposed to will determine which option you should go with.
If you are just looking for the minimum amount of cover to satisfy your demolition licensing requirement then $10,000,000 cover will usually be approved in most states. Bearing in mind that if you are tendering for a larger job, they may require you to increase this limit if successful.
Truck and Plant Insurance for Demolition Contractors
Even if you are just wanting to obtain truck insurance an insurer will usually need to know the amount of demolition work that you are doing. This should also be noted on your policy for the work that you are doing. The reason why insurers need to know about demolition work that you are doing is due to the high risk nature of certain demolition activities. When an insurer is notified that your business does demolition work they will then typically ask some further questions about the type of demolition work that you are doing. For example, they will usually ask the following:
- How much demolition work is done within the CBD?
- What is the maximum height of buildings being demolished?
- Are you doing any asbestos removal? (if you require further information about demolition and asbestos removal insurance or would just like further information about asbestos removal insurance then please feel free to read our linked articles as these go into further depth.)
These are considered qualifying questions and depending on how you answer them will determine whether an insurer will agree to provide you cover or not.
It's just truck insurance, why does an insurer need all of this information?
The reason why an insurer asks this information is because they need to understand their level of risk. For example, if you are driving your truck on a construction site and you reverse into a neighbouring property's fence then your trucks insurance will be liable for the damages. The same can be said if another contractor or person was injured from the truck.
Construction sites can be very busy with lots of work going on and a large number of people moving around at any one time.
The insurer is also responsible for the goods that you carry. If your truck is carrying debris and rolls over on a freeway, your insurer is liable for the clean up costs.
Recap
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Daniel Ufer
As outlined above, the key takeaways from this article is:
- Ensure that you declare all of your business activities across your business insurance policies
- Speak with a Broker who is familiar with demolition insurance policies and their supporting business activities
- Combine your policies with one Broker for wholistic advice to ensure that there aren't gaps in cover
All information provided in this article is general in nature and your personal circumstances have not been considered. As such, this article cannot be interpreted as personal advice and should you wish to be provided with personal advice about your personal circumstances then we recommend that you get in contact with us to discuss your situation further.
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.
All information above has been provided by the author.
Daniel Ufer, Priority Insurance Brokers, ABN 95 655 563 616, AFSL 233750
This article originally appeared on Priority Insurance Brokers Blog and has been published here with permission.
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