There’s a lot that can go wrong on a building site: from stolen tools, damaged equipment, and accidents in commercial vehicles, to materials lost in transit, costly mistakes made in error, and interruptions to business. It’s easy to see why having the right business insurance cover is so important to builders, to manage any risks and keep business moving forward should something go wrong.
Before starting a new building project – whether building new or doing an alteration, extension or renovation to an existing property – find out if Contract Works Insurance could help mitigate your risk.
Contract Works Insurance provides insurance cover for builders for the period of time that construction work is being done. Along with cover for damage caused by natural hazards such as fire, flood or storms, Contract Works Insurance extends to accidental damage, vandalism and theft. Contract Works Insurance helps keep your project on track, by covering loss, damage or theft of tools and equipment, materials in transit, commercial vehicles, business interruption, and legal liability.
Despite best intentions, mistakes do happen. And sometimes those mistakes can cost thousands of dollars to rectify. The fact is any business providing a professional service could be exposed to risk. Which is why it’s so important they’re adequately covered for legal liability. Liability Insurance protects builders – and other professional contractors – against a financial loss in the event of a mistake. What’s more, liability insurance may also cover public liability and unintended personal injury to employees.
While installing new floor tiles, a builder lost their footing and dropped a heavy tile on the floor damaging both the floor and the tile. The builder needed to order new materials which cost both time and money but was covered under the business liability policy.
Replacing stolen tools and equipment could easily set you back thousands of dollars, not to mention the loss of income if you’re unable to work for a period of time. Business assets insurance – insurance cover for tools and equipment – lets you replace lost, stolen or damaged trade tools, equipment and light machinery and get back to work right away.
While on-site at a construction project, a builder’s van was broken into and a number of expensive items were stolen, including a power drill, drop-saw and toolbox. Damage to the side window and front door lock due to forced entry meant the van needed to be off the road for a few days for repairs. Under their Business Assets Insurance policy, the builder was able to replace all stolen items with new, and the cost of repairs to the van were covered.
A crucial part of any successful building project is ensuring materials and supplies arrive on time and in good condition. But there’s a lot that can go wrong in between building supplies leaving the supplier and arriving on-site for use. Contract Works Insurance covers damage incurred to construction materials or supplies while in transit and may also extend to storage of materials and supplies on-site should something happen while being stored.
Framing lumber not properly secured became dislodged during transit, causing damage to a large number of framing pieces. On offloading the delivery vehicle, a bag of cement was damaged when dropped. Plumbing fittings that were being air freighted from an overseas supplier were lost in transit and never arrived. All of these items were covered under the materials in transit cover in the builder’s Contract Works Insurance policy.
Accidental damage, loss or theft of a commercial vehicle can be a major set-back if you’re not properly insured. The financial outlay to replace or repair commercial vehicles is not something most businesses can easily cover, while the additional cost of lost time while vehicles are off the road is an added expense.
To get your commercial vehicles back on the road again quickly and cost effectively, ensure you’re protected with Contract Works Insurance, insurance that protects against loss, damage and liability for commercial vehicles used for business purposes.
On the way to a construction site, a builder’s van and trailer being driven by a tradie were involved in an accident, rear-ending another vehicle. Because both the van and trailer were covered under the commercial vehicle cover in the builder’s insurance policy, the insurer accepted the damage claim and arranged for repairs to both vehicles and trailer involved in the accident.
When your business is unable to operate due to circumstances out of your control, it doesn’t mean you stop paying your bills. Ongoing expenses such as wages, supplier invoices, loan repayments or rent still need to be paid, even when you’re not generating any revenue. The financial loss could be devastating. Under cover provided by Business Interruption Insurance, operating expenses are taken care of when your business’ operations are interrupted due to a major physical loss of business assets.
Whilst traveling to the site of construction, one of the building contractors was involved in a vehicle incident. The vehicle was unable to be used for several days whilst being repaired and this led to delays in completing the contract, which ultimately caused negative impacts to the costs and income for the business. With the Business Interruption option selected, the insurance company provided a pay-out to ensure that the financial position of the business was not impacted by the delays.
Any business providing professional advice could be exposed to risk. It’s crucial that professionals involved in providing advice, such as Engineers, Lawyers and Accountants, are adequately covered in the event that the advice they provide leads to a financial loss.
At Max Insurances, our Insurance Advisers understand the importance of having the right insurance cover, especially when it comes to construction projects. That’s why we work with builders – like you – to identify the risks you may potentially be faced with, and help you mitigate those risks with a tailor-made insurance solution that fits your business.
With access to an extensive range of insurance providers, we can find the most competitive insurance solution for you. What’s more, proof of insurance can usually be issued immediately so you don’t have to wait to start your next project. And if you do need to claim, we’ll advocate on your behalf for a fair and prompt result.
To find out more about Contract Works Insurance for your business, contact Max Insurances today.
We’re here to help you find the right business insurance NZ wide– call us right now on 0800 ASK MAX (0800 275 629) to speak to an Insurance Adviser.
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