Construction Development
Insurance for Construction and Development Industry
The construction and development industry requires a special commercial insurance.
Builder Indemnity or Home Warranty Insurance is commonly required of builders by law before construction of a residential project. The purpose of this insurance is to cover the risk of an insolvent builder so that a building project can continue. Builders need to pass an eligibility test before insurance can be provided for a specific project. Experience as a building supervisor and financial security are important criteria to ensure eligibility. As a guide, builder’s should allow up to two months for the eligibility requirements to be assessed and approved.
Contract Works and Public Liability Insurance is usually a two-in-one insurance policy a builder can take up before commencing. Contract Works covers the builder’s materials and work against perils such as fire, storm, and theft of materials used in the construction project. Public Liability covers risk of injury or damage to a third party. It is also important to note that Workers Compensation (other names used in different parts of Australia) is a separate insurance to cover injury to workers. Building Insurance for Home Building, Landlord Building or Commercial Building should be considered when a construction project is completed.