Insurance is an essential requirement to small businesses and builders are no exception. In fact, given the hazardous nature of the work, it is important that builders have the right insurance policy for their business.
What kind of insurance do builders need?
Public Liability: This cover for builders protects against injury or death of third party persons, or damage to third party property, from incidents arising as a result of your business activities. For example, if a pedestrian was to be hit by masonry or a dropped tool or piece of equipment when passing a site at which you were working, you might be held liable for damages, compensation and legal fees. The same would apply if the items hit a car or damaged another property.
Another example might be damage or injury caused by collapsed scaffolding or by a structural defect for which you could be held liable.
Employers’ Liability: As an employer you are responsible for the health and safety of your employees while they are at work. Staff may be injured at work or they, or your former employees, may become ill as a result of their work while in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims. Injuries and illness relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance. Even with employers’ liability cover in place, you have legal responsibilities to protect the health and safety of your employees. If your insurer believes that you have failed to meet your legal responsibilities for the health and safety of your employees and that this has led to the claim, the policy may enable the insurer to sue you to reclaim the cost of the compensation.
Buildings Cover: Protects your business premises against perils such as weather damage and flooding.
Business interruption insurance:
(also known as Business Income Insurance) covers the loss of income that a business suffers after a disaster while its facility/store/venue is being rebuilt. A property insurance policy only covers the physical damage to the business, while the additional coverage allotted by the business interruption policy covers the profits that would have been earned. This extra policy provision is applicable to all types of businesses, as it is designed to put a business in the same financial position it would have been in if no loss had occurred
Business / Office Equipment: Covers business equipment whether it is lost, stolen or accidentally damaged. You may need additional cover if you take equipment overseas. You should also check whether mobile equipment, such as laptops and phones, are covered outside the premises.
Tools: Covers hand and power tools in the event of loss, theft or accidental damage. You can also choose to include tools left in your vehicle overnight.
Stock: Provides cover for stock, materials in trade and customers goods for which you are responsible.
How do I get my building business insured?
Contact Melbourne Insurance Brokers and find the best insurance policy for your building business.