Insurance against an owner builder’s failure or lapses in a duty of care resulting in on-site injury or accidents claims, whether at fault or not, and upon receiving a legal claim for compensation, an owner builder’s insurance better gets to work and protect their client’s interest. Not all do, unfortunately.
The building, renovating or adding an addition or granny flat, requires hiring subcontractors for some elements of the project or subcontracting the entire project. As owner builders increasingly act as project managers, or “managers of trades”, and over-see the schedule of works, the risk is more than ever concentrated on public liability, and personal risks in liability due to errors or omissions in an owner builder’s duty of care.
Good insurance will address these critical incidents, whilst junk or ill-advised insurance will avoid any mention and reference.
All building or renovating risks are manageable but do require some degree of awareness and care, and be sure to choose the insurance which is purposely designed and underwritten for owner building environments.
Which 3 Risks Activities in Building/Construction Must Have Insurance?
Three building or construction activity risks generally apply.
The unequivocal, number one exposure is to an owner builder’s personal finances and property (real estate) assets, followed by emotional pressures of potential medical, legal or regulatory proceedings or claims for compensation. Not all claims are proven as an owner builder’s wrongdoing, but claims of this nature require defending and herein lies unforeseen legal costs, and subsequently, insurance is just paramount.
- Insurance must make good any material or physical damage or personal loss, to items such as building construct, materials, fixtures and fittings, appliances and other, caused by theft, fire, storm or weather events, and malicious acts or vandalism events.
- Insurance against third party damage or loss, such as neighbours property, council or civic infrastructure such as roads, footpaths and telecoms equipment, gas, electrical and water.
- Insuring against compensation claims for an alleged failure in duty of care and on-site supervision. These claims are often made by lawyered-up heavyweights, such as medicare, workers compensation boards, other insurers (such as personal injury insurers acting on behalf of the injured) and building industry regulators.
Any claims by these bodies cannot be ignored must be legally defended, and therefore by sheer weight of power and deep pockets and owner-builder needs friendly insurer on the side.
Construction insurance costs vary depending on project value and construction site state postcode which drives state sales tax and emergency services levy if they apply. As a guide cover starts from $660.00 and provides continuous cover up to 12 months. Contact us for the fully detailed on-line quote.
Voluntary Workers Insurance
Construction and renovation sites are inherently dangerous workplaces. Inviting and often with just one-moment notice family and friends may be enlisted up to assist on-site: clean up or some lifting and reposition.
Voluntary or non-paid guests or family and friends should be made aware of work-place risks and every precaution should be conveyed to ensure they are appropriately equipped and attired to be a work site.
Voluntary Workers insurance is popular insurance for most owner-builders. It’s generally low cost, less than $390, with broad cover items. More information can be found here.
Personal Accident Insurance
For most regular wages and income is heavily relied on to pay household bills.
Personal Accident Insurance is specifically designed for owner-builders, business owners, sole traders or contractors, where for example workers compensation cover may not be available or not enough.
More details can be found here: Personal Accident, Sickness, Injury and Income Protection.
Categorised in: ACT Owner Building, Commercial Property Insurance, Contents Insurance, Granny Flat. Garage. Shed., Landlord Insurance, NSW Owner Building, Owner Builder Insurance Cover, Owner Builder Tools, Queensland Owner Building, SA Owner Building, Tasmania Owner Building, Victorian Owner Building, Voluntary Workers. Personal & Accident Insurance
This post was written by Technical Underwriting Centre