We all look forward to winding down over the holiday break (and we should, we’ve worked hard again this year!!!) Unfortunately, this time of year in Adelaide or Australia as a whole also attracts many perils both on and away from construction sites for both builders and tradies alike. Whether it’s wild and windy storms causing water damage to projects under construction, tools being stolen out the back of vans or from your storage facilities plus the occasional fire breaking out and bored vandals looting and causing damage to sites, insurance claims are plentiful during this holiday period.
It’s important to start looking at your insurance policies closer, are they really providing you with the cover you need during this time? Are you aware of all the insurance conditions and exclusions which might affect you during this time?
For instance, most Contract Works insurance policies contain a Cessation Clause stating cover will cease for that project if left unattended (usually for more than 30 days). For instance, your last contractor may have finished their work on a project mid-December and the next trade is not in until early February. The project site is left unattended for more than the allowed period and therefore cover ceases on the project during one of the most venerable times.
Contract Works insurance policies also tend to contain a Maximum Construction Period which usually is 12 months although the cover period can be longer or shorter depending on your Contract Works insurance policy. Don’t get this mixed up with your policy period as these are two separate periods and work differently. When a Construction Period starts, it will not pause if you are faced with material or labour delays or a break for the holidays. Once the allocated time under your Maximum Construction Period is reached, cover ceases on that project. Unfortunately renewing your policy does not reset this period. With projects taking longer than usual to complete, it is worth it, in general, to increase this period to ensure you are not left exposed and uncovered!
Why you are at it, it’s worth reviewing the scope of cover and limits providing under your Plant & Equipment insurance policy and Office & Workshop insurance to ensure your tools, machinery and equipment are adequately insured so you can relax and be stress-free over this holiday season.
To help you with shutting down your sites this year and some insurance prompts, see the attached brief Christmas Shut Down Checklist.
Not sure what questions to ask or conditions or exclusions to watch out for? Don’t stress, Be Covered Insurance Brokers are a construction insurance specialist based in Adelaide and we’re insurance nerds who love to read insurance clauses’ and exclusions. Whether you’re a Builder or a Tradie, Be Covered Insurance Brokers can help review your insurance policies and make sure you are adequately covered for the holiday break (and every month after).
To rest easy knowing you are adequately covered this holiday season, call Be Covered Insurance Brokers on (08) 7092 2242.
