Construction Insurance

Just as there are numerous risks within the construction industry, there are numerous forms of construction insurance to protect you.

Often when people are talking about construction insurance they are referring to contract works insurance, but there are a few others that fall into the same category.

In this guide we’ll take a look at the various forms of insurance that businesses within the construction industry may need.

• Contract Works • Contractual Liability • Public Liability • Professional Indemnity • Mobile Plant & Equipment

There are more, and we recommend speaking with one of our construction specialists for more detailed information on which could be right for you and your business.

CONTRACT WORKS

Contract works is one of the most common forms of builders insurance.

You’ll sometimes hear it referred to as construction works insurance, builders all risk insurance and everything in between. Most commonly it’s just contract works insurance. This insurance will protect your projects from a range of different risks, including: • Loss or damage to the project due to fire, storm and a range of other risks • Loss or damage to materials on the work site • Property damage or personal injury to others Some of those points might seem like they overlap with public liability insurance, but there is a big difference.

Public liability is all about covering your negligence, so we’re talking about events where you are found to have been negligent, and that has contributed to the loss.

But contract works will cover you where you were not negligent, or basically, it wasn’t your fault.

For example, if your worksite was properly secured but a storm caused damage, that’s not your fault. It wouldn’t be covered by public liability but would be covered by contract works insurance.

CONTRACTUAL LIABILITY

Contractual liability insurance is somewhat similar to contract works insurance, but it covering a different type of risk.

We recommend speaking with one of our specialists for a proper explanation, but basically it covers you for things that you might not normally be liable for, but the contract you have signed has made you liable.

Ordinarily he wouldn’t be responsible for loss/damage caused to the generators if he wasn’t at fault, but the contract he entered into made him responsible for them whilst he was undertaking the work.

The generators suffered damage, but not because of the electrician. This meant his public liability wouldn’t cover the loss (as there was no negligence) but because he had contractual liability insurance he was covered.

PUBLIC LIABILITY

This is the most common form of insurance for tradies, builders and most other contractors.

It will cover you in the event that you cause property damage or personal injury to a third party.

For some builders their contract works insurance will include their public liability, but you should never assume that is the case without confirming with your insurer or insurance broker.

Here at Trade Risk, public liability insurance is the most common form of cover we deal with, so you can count on us for expert advice and service.

PROFESSIONAL INDEMNITY

If you are providing design, consulting or advice services in the construction industry, you’ll most likely need professional indemnity insurance.

Like public liability it covers you where a third party has suffered a loss such as property damage or personal injury, but instead of from your physical actions it’s as a result of your professional services. As with contractual liability, professional indemnity is one of the construction insurance types where it really is better to speak with one of our experts to find out exactly what you need.

PLANT & EQUIPMENT

Many businesses in the construction industry are going to have mobile plant and equipment.

Often these items are amongst your biggest investments, so it’s important to protect them from the risks they face. Mobile plant and machinery insurance can cover you for a range of risks including damage and theft.

Your machinery isn’t just limited to your excavators and similar, but also the trucks and trailers you use to cart them around.

A construction insurance package can be put together to cover all of your plant and machinery, as well as road vehicles.

CONSTRUCTION INSURANCE SPECIALISTS

We’ve been helping tradies and builders in the construction industry for over a decade.

If you’re a subcontractor who just needs a public liability policy to get onto the site, a builder who needs a single project contract works policy, or a major construction company that needs the works, we have the team to help.

Our office is based in Queensland, but we assist thousands of trade and construction businesses from all over Australia.

We can assist you via phone and email, video calls, or if you’re close to Brisbane we can meet at your place or ours for a face-to-face meeting.