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    7 Key Considerations when Arranging Construction Insurance

    The construction site continues to be one of the highest hazard environments in Australia, with a  range of risks and exposures that could lead to personal injury or damage. Construction Insurance is a necessary consideration that may even be mandatory depending on the project, contract, or state laws. 

    In a 12 month period between 2020-21, men in the construction industry accounted for 17% of work-related injury or illness. Safe Work Australia explains that around 12,600 Workers’ Compensation claims are accepted from the industry every year for injuries and events involving one or more weeks off work – an average of 35 serious claims every day. 

    To keep your construction business, employees, as well as any affiliated persons or third parties safe, it is important to take care when purchasing Construction Works Insurance. Learn more about this form of insurance and the key considerations to ensure comprehensive cover

    What Is Construction Insurance?

    Contract Works Insurance is a policy that is recommended, and often contractually required or required by law, for those undertaking construction work including contractors, subcontractors, project owners, builders, and others involved in the construction industry. This provides necessary protection during construction projects to cover a range of risks during the construction period. 

    This form of insurance can provide cover for Legal Liability, including Public and Products Liability Insurance and Material Damage to ensure cover in the event of loss or damage to the Project under Construction. Contract Works Insurance can be job specific or an annual policy, can be found through a Broker or through Direct Insurers in some instances and can be customised to suit the requirements of your construction projects. 

    7 Key Considerations

    1. Insurance Broker or Direct Insurance

    This form of insurance is predominantly available through an Insurance Broker however some insurers may appoint a third party as their Agent to arrange cover. As this cover can be complex and requires a strong understanding of the industry as well as a thorough risk assessment of your specific insurance needs, it is recommended that this is sourced through a Broker

    2. Material Damage Cover

    Cover for Material Damage can be extended to include protection against risks such as fire, theft, malicious damage, storm, hail, cyclone, flood and accidental damage during a construction period. Consider the limits and perils covered to ensure comprehensive cover. 

    3. Public Liability Cover 

    You should consider the limits of cover and whether extensions are required for Liability Insurance. Potential extensions that may be required include Vibration which is a common problem leading to property damage that is commonly excluded, as well as Weakening or Removal of Supports.

    4. Cover For Existing Structures 

    Material Damage cover can extend to include Existing Structures. This is crucial as there is a common misconception that Existing Structures will remain covered under existing property, home, or business policies. This is not the case, and the Insurer should fully understand the nature of the existing structure to avoid complications in the case of a claim. 

    5. Single or Annual Cover 

    While a Single Project policy covers you for one insured project, an Annual policy covers all construction projects for 12 months within agreed parameters. An Annual policy is recommended if you are consistently completing construction works as this is most convenient and ensures no gap in cover. 

    6. Cover For Principal Supplied Items 

    Cover for principal supplied items protects items such as materials or equipment that have been supplied by the project owner and used by the contractor or builder, covering these against theft, loss or damage. Certain details of the policy may require review to ensure the specific supplied items for your work are protected. 

    7. Additional Extensions 

    Consider any additional extensions that may be required. This could include cover for removal of debris, professional fees, pollution liability, or mitigation costs. 

    Reliable Construction Insurance With Atlantic Insurance

    Atlantic Insurance Brokers has been insuring the construction work of our clients in the construction industry for many years. With skilled Client Managers who work to understand your insurance requirements and develop a tailored plan, Atlantic is the preferred choice for many trades businesses for comprehensive coverage. 

    Contact us today to discuss your requirements and receive a quote.

    Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.

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