Business Insurance Suitable for Builders

What types of Business Insurance products are available for builders?

Some of the main types of insurance that a builder could consider include:

• Public liability insurance
• Personal Accident illness
• Portable Equipment insurance
• Tax Audit insurance

So, let’s have a closer look at each of these.

Public Liability Insurance

Public Liability Insurance is compulsory for many Australian businesses, and is commonly a contractual requirement for many builders.

Public Liability insurance is designed to provide protection* for you and your business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities.

A claim made against you could result in a big bill, even if you’re in the clear. And as the business owner, you’re the one who’s legally responsible for any legal and compensation costs.

What does Public Liability Insurance normally cover?

Details vary between insurers, but Public Liability Insurance typically help cover the following things:

• Legal costs: These costs can get big, so knowing that they’re taken care of can save you a lot of stress, and potentially money.
• Loss or damage of other peoples’ property: This is property which was under your control for business purposes.
• Third party injury: If a customer, supplier or member of the public is injured either on your business premises or because of your actual or alleged negligence.

What does Public Liability Insurance not typically cover?

As with all insurance, there are exclusions, so check closely. Here are some of the more common ones:

• Damage to your own business property: For this to be covered, you’d likely need a Commercial Property Insurance policy
• Injuries to your own employees: and other things which should be covered by workers’ compensation.
• Any costs beyond victim compensation: Fines or ‘Punitive Damages’ that a court awards against you will not be covered by public liability.
• Remedial work: The costs of putting things right after bad job, are the responsibility of the business owner, not your insurance.
• Damage to your own property. You’ll need separate insurance for that to be covered.
• Events occurring outside the policy period. Seems obvious, but if your policy runs out and you forget to renew it, you won’t be covered in the case of an event.

Public Liability can be a compulsory type of insurance, but there are still variations in exactly what each policy covers, so check the details before you sign up.

Personal accident and illness Insurance

How long could you or your business survive if you suddenly couldn’t draw as much or any revenue due to you being ill or injured?

Personal Accident and Illness insurance* can help provide levels of cover for loss of income if you are unable to work, permanent disablement and even death as a result of an unexpected injury or illness (even if it occurs outside of your employment).

With no stress about covering your bills, you can concentrate on recovering and getting fit for work.

As well as covering loss of income because of injury or illness (or both combined), some policies may offer options to include cover for things like death, disablement and business expenses. Some things that are typically not covered by Personal Accident insurance. Look out for policy exclusions and be aware that your policy probably won’t cover things like:

• Injury or illness that is the result of pre-existing conditions.
• Time off for pregnancy and childbirth.
• Injury or illness caused by an intentional criminal act caused by you.
• Alcohol or Drug related illness or injury.
• Injuries resulting from professional sports and motor sports

As always, check any policy carefully for inclusions and exclusions, and make sure you know what you’re covered for.

Tax Audit Insurance

It’s the sound a small business dreads, the surprise knock on the door from the ATO. Audits can happen out of the blue and catch your business by surprise.

Tax Audit Insurance covers a business for specified costs in the event that it is selected by the Australian Tax Office for auditing. The policy offers coverage for the costs of accountants and other nominated professional fees incurred in the course of an audit.

Any fines or taxes imposed as a result of the audit, and money for your time or lost opportunities will not typically be covered. Neither will your employees’ time or wages

Portable Equipment Insurance

As a builder, you’ve probably got plenty of gear, and losing any of it can be a real pain.

That’s where having Portable Equipment Insurance could help.

Portable Equipment or General Property insurance can either be a separate policy or part of your Business Insurance package. It can help cover specified items such as tools, business equipment or electronic items. You can choose between comprehensive cover which generally includes accidental damage cover or insured events cover (for events such as fire, theft by forcible entry, explosion or storm).

A Portable Equipment policy can cover things like:

• Fire, storm, water, explosion, impact or malicious damage
• Accident involving a vehicle conveying the equipment
• Theft from locked vehicles or locked buildings involving forced entry
• Theft of equipment securely attached to a vehicle by locks or padlocks

A Portable Equipment policy will typically not cover things like:

• Damage from wear and tear
• Cracking, scratching, or breakage of fragile items
• Rust, mildew, mould, rot, contamination or pollution or the like.
• Damage from heating, drying, cleaning, dyeing or alteration to any insured item
• Faulty materials or workmanship causing damage to an item
• Theft by your employees
• Unexplained inventory shortage

Find a policy that suits you with iSelect and BizCover!

iSelect has partnered with BizCover to help you look for a suitable Business Insurance policy. Click here to compare policies online today!