Do I need insurance if we are undertaking a small renovation?

Owner builders and renovators, engaging tradespeople, sole traders or sub-contractors are particularly exposed to compensation claims from work-place authorities such as WorkCover, or Workers Compensation Board, and Medicare, hospitals, private health insurance providers and medical practitioners. They ultimately seek to recover any medical and legal costs for any claim made on them from parties at fault.

Government and statutory bodies such as councils are ‘heavy-weight’ litigators when construction or building works incidents are involved. This is the building industry and litigation is standard practice.

Without insurance, (appropriate insurance), a home owner faces personal legal attacks from heavy weights who really don’t care too much about a lack of money in the bank, because the property owner and their (home) asset is their ‘bullseye’.

Recently a small home renovator located in Brisbane’s South, received a letter of demand from one of the nation’s largest and ‘richest’ telecoms provider, demanding $108,000 for telecoms equipment damage which occurred 18 months prior. This letter required the home owner to remit the full $108,000 within 14 days. The claim resulted from damage, disruption to services or breaches to statutory service. The home owner was not insured and now is required to personally cover legal defence costs!

The underlying concern for owner builders is when incidents, or events, not of their doing nor involvement but is somehow connected to the construction or renovation works, and the cause of the damage or loss is unknown, then an owner builder with an asset is likely to be dragged into the incident and preceding. Good insurance intercepts and takes responsibility to manage and settle such legal claims and will release the owner builder from further concerns.

Qtrust’s senior owner builder consultants are available to discuss liability risks any time.

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