In recent months, we have seen several builders go into liquidation mid-project, including one just a few weeks ago at Dock One in Port Adelaide. It’s a stark reminder of how volatile the building and construction industry can be and how essential it is to have the right insurance in place when taking over or continuing works on a site that’s been left in limbo.
At Be Covered Insurance Brokers, we work closely with builders, developers, civil contractors and project managers to ensure they are properly protected, especially when stepping into projects partway through. Because once a builder collapses, it’s not just a question of unfinished work, it’s a shift in responsibility, liability and exposure.
So, what happens when a builder goes bust?
When a builder walks off-site due to disputes or insolvency, everything changes. There might be half-built structures, exposed materials, unsecured perimeters and incomplete paperwork. Yet despite all of that, the project must go on. Owners want progress. Deadlines remain. And someone needs to step in.
But here’s the catch — you can’t just walk onto that site and pick up where they left off without considering the legal and insurance implications. In this situation, the next builder or contractor often becomes responsible for:
- Protecting the already completed works against ongoing damage, theft, or vandalism
- Protecting any new works being done to finish the project
- Site security and safety
- Public liability exposure (particularly if someone is injured on site)
And unfortunately, the original builder’s insurance no longer applies once they are in liquidation. That leaves the incoming party with full exposure or the property owner until a new builder is appointed and contractually takes on the risk.
The Insurance Gap You Need to Close
We have seen builders caught out by assuming they can simply add the new works to their current contract works policy. But in cases like this, it’s not that simple. The project already has history. You are not starting fresh—you are stepping into a partially completed, previously insured site. That calls for a tailored policy solution.
Here’s where Be Covered steps in. We help you arrange cover that’s designed for continuation of works, covering:
- The existing structure (damage since the original builder left)
- Public liability for anyone entering the site (authorised or not)
- Theft, vandalism, or storm damage—especially during periods when works are paused
- The new phase of works under your management
This kind of policy isn’t off-the-shelf. It needs to account for what’s been done, what’s missing, and what’s coming next. And it needs to meet the contractual and regulatory requirements before you can legally begin.
The Liability Trap
We have also had clients surprised to learn that, once the original builder exits, the owner of the site often becomes liable for accidents or injuries—until a new contractor takes over and proper coverage is reinstated. That window of liability is real, and it’s dangerous.
Why work with Be Covered?
At Be Covered Insurance Brokers, we don’t just find you a policy—we understand the contracts, clauses, and compliance requirements you are up against. Our job is to ensure you are protected from every angle, especially when you are stepping into a project already in progress. We work with:
- Builders needing continuation or takeover cover
- Civil contractors exposed to risk during paused infrastructure works
- Developers who need to secure and protect assets mid-project
- Project managers navigating complex contracts and shifting responsibilities
- Property Owners now exposed to large Liabilities they weren’t planning for
Our Insurance For Building Industries comes with:
- Competitive pricing through our Steadfast Group network
- Access to exclusive policies and markets
- Proactive monitoring of your program as the project evolves
- Real-world advice that helps you get on site faster and stay protected
Construction is complex. Liquidation makes it more so. If you are stepping into a project where a builder has gone under, or you think you might need to, get in touch with our team first.
We will help you assess the risks, close the insurance gap, and make sure you are ready to move forward safely and confidently.
Be Covered. Be Prepared.
