FROM NZCB —
Contract Works vs Public Liability Insurance Contract Works Insurance
Public Liability Insurance
Contract Works Insurance provides cover for accidental and physical loss to the building during the Construction period.
Public Liability Insurance provides cover for accidental damage caused to someone else’s property.
Examples of Contract Works claims include (and not limited to): Builder puts a nail through a water pipe causing an internal flood The bench top gets dropped whilst being installed Fire damage Impact damage to the building Storm damage rips off the roof during heavy winds Appliances or Hot Water Cylinders stolen from site Malicious Damage or Vandalism Contract Works Insurance will provide cover for the cost of repairing the work or replacing the lost items. Contract Works Insurance should also include cover for sub-contractors in respect of materials that they have supplied and work that they are doing.
Examples of Liability Claims may include (and not limited to): Damage to underground services – accidentally digging up an identified cable Sudden and accidental discharge of pollutants (clean up costs) Employees are included – sub contractors should hold their own Insurance. Defective workmanship/Property being worked on can be included under most liability Insurance policies – e.g.. The plumber forgets to crimp a connection for the shower unit. Walls are sealed up, waterproofed and tiled. When testing taps, water leaked in the internal wall, damaging the walls on the lower floor. Cover would be included for costs to remove the tiles, repair the crimp, waterproof & re-tile. Limited to $100,000. Whilst cleaning glass, some grit was in the cloth resulting in scratches to windows. Limited to $100,000 Incorrect installation resulting in damage to other property Under Statutory Liability Insurance, cover can be included for any fines ordered by the Building Practitioners Board arising out of an action under the Building Act. Cover is also included for Legal Defence Costs.
It is important to always refer to your policy wording for full coverage details.
Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Limited. For a free review of your existing portfolio, you can call BrokerWeb Risk Services on 0800 644 444. As an NZCB Member you have exclusive access to REDi Insurance Solutions; negotiated premium discounts, wider Policy Coverage, Personal Risk Advisors, Assistance with claims process and settlement.
