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Building Insurance NZ
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When running a successful building business in New Zealand, insurance is paramount. Not only does it protect your assets, but it also safeguards your reputation and livelihood. At Gerrards Insurance Brokers, we provide the ideal coverage to keep you secure in your work. If you need a quote immediately, please contact us. If you wish to understand more about builder’s business insurance, read on.
Why do Builders Need Insurance?
Building is a complex industry with myriad risks. It involves handling costly equipment, working in varying environments, and coordinating diverse teams. Accidents happen, equipment breaks or gets stolen, and sometimes disputes with clients may arise.
As a builder, you need insurance to cover potential risks and unexpected incidents that could lead to financial loss. A robust insurance policy helps mitigate these risks and lets you operate your business with peace of mind.
Types of Coverage for Building Businesses
Public Liability
This policy covers common business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.
Best For
- Business Accident Coverage
- Third-party Damages
- Legal Cost Protection
Statutory Liability
This cover is a type of protection that helps people or businesses cover costs if they accidentally break certain laws or regulations.
Best For
- Unintentional breaches protection
- Legal costs
- Fines and penalties
Contract Works Insurance
Special type of insurance that protects construction projects. It covers damage to the building works caused by unexpected events like accidents and natural disasters.
Best For
- Accidents
- Natural disasters
- Fires
Tool Insurance
Safeguards your tools against unexpected events, like burglary or accidental damage, ensuring you won’t have to bear the financial burden of replacing them.
Best For
- Burglary protection
- Accidental damage protection
- Anywhere in New Zealand cover
Business Vehicle Insurance
Protects vehicles used for work purposes. It covers accidents, damages, and injuries related to the vehicle while it’s being used for business and personal activities.
Best For
- Repair costs
- Third party damages
- Injuries
Loss of use
Coverage that helps when your vehicle is unusable due to an accident. It covers the cost of a temporary replacement vehicle, so you can still get around while your car is being repaired.
Best For
- Temporary vehicle
- Reimbursement expenses
- Accident downtime
Employers Liability
This insurance helps protect businesses from financial losses if an employee suffers injuries or illnesses at work.
Best For
- Workplace injuries
- Legal expenses
- Compensation payments
Professional Indemnity
This coverage protects businesses from financial losses if they make mistakes or are accused of negligence while doing their job.
Best For
- Negligence claims
- Errors & Omissions
- Professional mistakes
Building Insurance Claims Examples
To illustrate the importance of comprehensive cover, here are five examples of incidents and the insurance that would cover them:
Door Left Unlocked
A worker accidentally leaves a client’s house unlocked, resulting in a burglary. Public liability insurance could cover the losses.
Painting Damaged
A painting is damaged when a worker brushes past it. Public liability insurance could cover the cost of the painting’s repair or replacement.
Van Break-In
Your van is broken into overnight and expensive equipment is stolen. Commercial vehicle insurance would cover the damage to the vehicle, while plant/tools insurance would cover the stolen equipment.
WorkSafe Investigation
After an incident on site, your business is under a WorkSafe investigation. Statutory liability insurance could cover the legal expenses.
Defective Work
A client claims a structural wall you shifted a few months ago is causing loud groaning sounds in the structure. Defective workmanship cover could cover the costs of fixing this.
What to Watch Out for with Builders Insurance
When selecting insurance, it’s essential to understand the terms and conditions and identify potential gaps in coverage. Here are some points to consider:
Property being worked on / defective workmanship cover
Ensure that your public liability policy covers property being worked on and defective workmanship. Without this, there’s no cover for anything you’re actively fixing or working on.
Public Liability Limit
Consider obtaining a high enough public liability limit. Recent claims in New Zealand suggest a limit of $2,000,000 or more, even for businesses solely in the residential space.
Keys & Locks Cover
Include keys and locks cover in your public liability policy. This covers the cost of replacing locks if you lose a key.
Theft Cover Exclusions
Check whether theft cover is included in your tool insurance. Policies vary; some cover open-air theft, while others are more restrictive.
Paying into a fraudulent bank account
Beware of scams. If you inadvertently transfer money to a fraudulent account, cyber insurance can cover the loss.
Rented/Hired Equipment
Check whether your policy covers hired equipment. If rented machinery is damaged or stolen, you could be liable for the costs.
Subcontractors Cover
Ensure that your insurance covers subcontractors. Subcontractors can often be a gray area in liability insurance, leaving you exposed to potential claims.
How Much Does Builders Insurance Cost?
The cost of builders insurance varies greatly, starting from as little as $300 a year for small businesses wanting public liability cover, up to thousands for large businesses with many vehicles and employees. Factors influencing the cost include:
Size and Turnover of the Business
Larger businesses with higher turnover typically pay more as they present a greater risk.
Location
Rates may be higher in areas with a higher incidence of claims.
Who is Being Covered
The number and type of workers (employees, subcontractors) can affect the cost.
Claims History
Businesses with a history of many claims will typically pay more.
Level and Types of Cover Required
Comprehensive policies with high limits cost more.
At Gerrards Insurance Brokers, we can help you get an accurate quote tailored to your business needs.
Making a Claim on Your Builders Insurance
When you need to claim on your builder’s insurance, we’re here to help. Our claims experts will handle the process on your behalf, ensuring a smooth and efficient experience.
Buying Builders Insurance with Gerrards Insurance Brokers
Our team of experienced brokers will help you navigate the process and find the right cover and the best deal. Contact us now for a quote.
Conclusion
Builders insurance is a necessity for any construction business in New Zealand. It protects against a multitude of risks, ensuring you can operate your business confidently and securely. At Gerrards Insurance Brokers, we provide the expertise and guidance you need to get the right coverage. Contact us today to secure your business future.
