When do you need Contract Works Insurance?
When does a business need Contract Works Insurance?
If you are a building contractor, tradie or sub contractor working in the building trade, whether commercial, industrial or domestic, then be sure you have the right type of insurance to cover. Contract Works Insurance can be customised to cover your business for accidental damage to onsite materials, building structures and even your tools. Cover can include, but is not limited to, property damage due to fire, storms, theft, malicious damage, losses due to delays in starting a project.
Who needs Contract Works Insurance?
Anyone within the building trade would benefit from this insurance. Just imagine if you have been contracted to build an office block, but due to circumstances outside of your control, damage occurs at the site throughout the construction period, materials are stolen and you have to buy more, or the project is delayed for 3 months. These scenarios and delay's can cause your business to suffer a significant financial loss, however with the right Contract Works Insurance, your losses will be covered and you can be back to the project. Many tradesman also need to reduce their on-site risks and can't rely on the contractor having the right cover. For example, self employed electricians, landscapers, tilers, plasters and painters can all suffer financially if they lose their tools or equipment, or it's damaged or stolen. The potential for physical injuries on-site are numerous, and it is important to ensure that the correct policy is in place to cover for work-related injuries on-site. There are options on which policy you can purchase whether you only require cover for a single project, or whether an annual policy that covers on multiple construction sites is more suited to your needs. You can also customise these policies to so you can be comfortable that if anything should happen, you have the right insurance in place.
What if you don't have Contract Works Insurance?
What happens if you find yourself in a scenario where a storm rips the roof off new construction, someone breaks into the site and steals all the copper piping, all the windows are smashed on the new building, it's set alight or major equipment is stolen overnight? As a contractor this could impact your finances substantially.
Do you need Contract Works Insurance?
If you are not sure whether you need Contract Works Insurance, here are three questions to ask yourself. 1. Does your business involve managing or working on construction sites? 2. Does your business manage or work on commercial or residential renovations? 3. Does your business have materials or equipment used on construction sites in storage or in use on sites? If you are a tradie, construction firm, project manager or owner builder, and answered yes to any of the above, then it's time to investigate Contract Works Insurance for your business. In the construction or building industry, reducing your risks is a priority. Accidents, thefts and property damage are real-world potential hazards, any one of which can have detrimental effects on an individual's business. That's why anyone working on construction sites needs to talk to an insurance specialist to ensure that they are adequately insured.
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Lisa Carter.