Builders Public Liability Insurance

Builders need business insurance, including public liability insurance as building is high liability work, with frequent accident on sites.

People and property on site may be hurt or damaged due to accidents involving building work.

Working from heights over 5 meters, is particularly risky, and result in many claims against builders for property damage or personalinjury.

When working from heights, falling building materials can damage power lines, vehicles, houses, or cause injury to a homeowner.

Fortunately, suitable public liability insurance for builders may provide protection against financial hardships that could arise from accidents, property damage, or legal claims caused by your building business activities.

Builder business and public liability insurance may cover property damage, injuries to third parties that are caused by your building equipment and work activities.

Many Business Owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*

"I contacted Smart Business Insurance and they got back to me the next morning. They were very prompt and organised my insurance in under a day. I highly recommended this company"

Chris Graham Christopher John Graham - Builder

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What Insurance Do I Need as a Builder?*

Some of the major types of business insurance covers available to builders in Australia are explained below and include:

Public Liability Insurance
Contract Works Insurance (also known as Construction Works insurance )
Business Insurance Pack
Personal Accident Insurance
General Property and Tools
Commercial Motor insurance
Plant and Equipment Insurance

Why do builders need public liability insurance?*

Public Liability Insurance coverage is essential for all self-employed builders.

Builders need public liability insurance as building involves working with volatile materials and hazardous chemicals that increase the probability of an accident on site.

People and property on site may be hurt or damaged due to accidents involving building work.

The constant presence of volatile materials such as wood, sawdust, paint, solvents, shavings, chips, adhesives, and other chemicals, means building work is rated as a high-risk occupation.

Protections offered to self-employed builders by public liability insurance in Australia generally include:

Injury to other persons due to your building activities –Where a building business activity causes harm to a third-party person. For example, a client ignores your warnings to stay away from the site and injure themselves when they trip and fall on your equipment.
Damage to others property due to your building activities – Where a building business activity causes damages to a third- party’s property. For example, a builder may accidently cause damage in a client’s home while performing work.
Harm to other persons or other persons property due to your building business’s products – Where a building business’s products and goods supplied causes harm to a third party -person or a third- party’s property. For example, products a builder has supplied, repaired, or manufactured cause harm, injure someone or cause property damage.

Public liability insurance coverage may protect builders from claims that arise when others allege they are negligent.

A builder’s public liability policy may provide a defence against the ensuing lawsuit when needed and may pay the damages sought by the injured party.

Public Liability Insurance may provide builders with protection for slip-and-trip accidents, and product liability.

Contract Works Insurance for Builders (also known as Construction Works insurance )

Contract Works may cover builders against accidental loss or damage to their building project during the construction period.

In some cases it may also covers any damage caused by natural disasters, theft, or vandalism- materials supplied by the builder, employee tools , builder plant and machinery , and transit.

Other optional covers under contract works for builders may include delay in start up , loss of profits and legal liability.

Contract works is an important cover for builders as it may provide protection for the builder and their assets should any loss, damage or injury occur during a construction project. As a result, builders clients benefit as builders may be able to continue with the project if something goes wrong .

Contract works policies can be purchased by builders annually or for one off projects .

Business insurance pack for builders*

Builders may be able to combine multiple covers in a single business insurance pack policy.

By ‘packaging’ your business insurance into a ‘business pack’ builders can potentially cover many of the risks their business faces in the one policy.

For example, if a builder has a commercial premises, a business insurance pack may provide cover for buildings and contents if they are accidentally damaged by a defined event, such as fire, storm, impact damage, accidental damage, vandalism, or malicious damage.

Other typical inclusions for builders with a business insurance pack are Public Liability Insurance and Product Liability Insurance.

Optional inclusions for builders with a business insurance pack are General Property, Contents, Machinery, Plant and Stock, Glass, Money, Business Interruption and Marine Cover.

Personal Accident Insurance for self-employed builders*

As a self-employed builder your personal safety is your livelihood.

Personal accident insurance for builders may provide cover for 52 or 104 weeks and up to 85%* of weekly income at the time of the injury; depending on the amount of coverage agreed when the policy is taken out.

Time away from work from an accident will have a direct impact on a self-employed builder’s income, and a long period away can negatively affect their savings, family, and lifestyle.

Personal Accident Insurance may help self-employed builders pay for essential bills and other financial commitments if they have an accident.

General Property and Tools Insurance for builders*

As a builder, you are likely to have many tools and equipment that allow you to do your job.

If your property is damaged or stolen, your business cannot operate effectively.

General property insurance can help you keep operating effectively.

It can provide needed funds to replace your tools ….and help keep you in business.

Commercial motor insurance for self-employed builders*

Commercial motor insurance should be considered for builders that drive their vehicle from site to site. Light trucks, vans and Utes may be covered.

Plant & Equipment Insurance for building businesses*

Plant & Equipment Insurance may provide cover for owners of small building businesses that operate equipment such as Power Tools , Bulldozers , Cranes, Trailers and forklifts.

Cover may provide builders with protection for theft, damage, consequential loss, liability, road risk and machinery breakdown.

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What are the costs of Builder Public Liability Insurance?*

How much does public liability insurance cost for self-employed builders?*

Key factors in determining how much Public Liability insurance will cost a builder include:

The nature and scope of the building business. For example, the type of work performed by the builder.
The building business turnover and size. For example, is the builder a sole trader that does 100% of the work themselves, or do they employee a team of 6 subbies?
Amount of insurance cover the building business needs. Liability starts with $5 million cover, $10 million is popular with many self-employed contractors, $20 million cover is needed for builders that work for large companies, on commercial sites or have a team of employees.

Public liability insurance cost for a self-employed builder with no previous claims, starts from around $650* or $60 per month for $5 million Public Liability Insurance.

*** Please note ***: While cheap Public Liability Insurance can seem attractive on the surface it is important to ensure the policy covers you for the full business activities you undertake, and that the insurance policy and company will respond as intended when there is a claim. Costs may differ greatly from the above based on the builders business size, clients, experience, and business activities. For many builders, that work from heights, work on high value projects ,or that have employees, costs will be a lot higher.

Do I need public liability insurance to work as a self-employed builder in Australia?*

Self-employed builders, or building small business owners, subcontracting for other builders will typically be required by that builder to obtain their own public liability insurance to get on site. This is typical for builders throughout Australia.

Many small business owners, and even retail clients, will also ask to see proof of a builder’s insurance cover, called a certificate of currency, prior to awarding them work and ask for an update each year.

As a self-employed builder, suitable business insurance may provide credibility and valuable protection against the cost of a claim too.

Key building activities that may be able to be covered include:*

Oversee, coordinate and work on :

-the construction of new homes , commercial buildings , industrial buildings and other structures

-repair and renovation of existing homes commercial buildings , industrial buildings and other structures.

Why do builders need tools insurance?*

Builders need tool insurance as tools are the lifeblood of building.

They help builders just like you to complete work on time, and to deliver quality workmanship.

Builders have a large number of tools compared to many other tradies. And good tools are expensive. If they break or are stolen, it can impact your ability to get the job done or cost you thousands to replace.

Without tool insurance, you may have to dig into your own savings or borrow money to get the tools replaced or repaired.

Different types of building works that may be able to be covered:*

Domestic buildings – houses, housing developments, apartment buildings or high‐rise apartment buildings
Office Buildings – Office buildings including single‐tenant offices, small professional office buildings, large skyscrapers, and everything in between.
Retail/Restaurant –high street shops, single tenant retail buildings, small neighbourhood shopping centres, regional and discount malls.
Other buildings – any other non-residential properties such as hotels, hospitality, medical, and self‐storage facilities, as well as many more.
Other construction – Civil works & plants.

Our business insurance brokers may be able assist you in sourcing suitable cover for a diverse range of building situations

Why should builders use an insurance broker in Australia?*

If you are a builder deciding on whether to use an insurance broker for your business insurance, it is important to consider that brokers act in the interests of the self-employed builder.

Direct insurers and agents act for the insurer. This can be important; especially if you need to claim.

Brokers can help builders by sourcing competitive quotes on policy inception, negotiate with the insurance companies to prevent or limit increases on renewal, remarket your policy to other suitable insurance companies where appropriate, talk to underwriters about policy wordings, industry classifications and terms, talk to insurance assessors during the claimsprocess and repairers where necessary.

How do I get a builders insurance quote?*

Simply TALK to a SMART Business Insurance broker on 1300 542 573 or contact us online for suitable and affordable public liability and business insurance quotes for your building business.