What risks do the building and construction industries face?
The risk of exposure for modern-day builders has significantly increased over the last couple of decades. Increasingly, they are required to take on the risk of the design element of building contracts, construct on challenging sites and work with an ever-changing team with labour shortages. Not to mention the prolonged impact of COVID and resulting delays exacerbated by building material shortages.
We are all familiar with the common threats facing those working within the construction industry, including the theft of tools and materials and damage caused by storms and fires, which are an inevitable element of Australia’s dramatic climates. However, there is also a growing trend of claims more commonly arising from issues around design, the failure of products being used on a project, onsite injuries, and damage caused by faulty workmanship.
Who is required to take out insurance?
To ensure you are always covered, it’s critical that you discuss your direct exposures and the remote exposures you have from engaging the third party directly or simply working side by side with them on a project, with your building insurance broker. Remember, when another party organises their insurance, they manage it to suit them, not you. They may have taken out the cheapest policy with limited cover, high deductibles or strict terms, and you have no control over their policy to lodge a claim to cover your losses. Plus, that individual could cancel that insurance, disappear at any time, or simply not return your call.
Isn’t it double dipping if I have a policy, and so does another party?
Not at all – this is where a building insurance broker comes in and ensures that when negotiating on your behalf, they work with the insurer to ensure they are well aware of your exposure portion and you are charged based on your portion of risk.
The right mix of insurances, such as our popular Tradies Pack, can ultimately save you a lot of money, time, and potential legal action if something goes wrong on your construction project. It’s important to work with an experienced building insurance broker to make sure you have the right cover in place.
Every builder and building project is different across Adelaide and Australia. How you work will impact what covers you need and the type of cover required by those working with you. With the multiple layers of risks facing builders today, it’s best to speak to a construction insurance specialist like Be Covered to ensure you are not under or over-insured but covered just right!