Many of us do not read the fine print on T’s & C’s, let alone our insurance policies and this is a real danger for many businesses, especially contractors that work on building and construction sites.
There are two main risk areas that could be damaging to a contractor’s business should they not have the correct insurance policy:
- Public and Products Liability
- Plant and Equipment
Most contractors require minimum $20m public and products liability cover so they can perform their job on site to insure against loss should you or an employee of the business cause damage to a third party.
Well hidden within the fine print of most of the “off-the-shelf” liability policies from well-known Insurance Companies are policy carve outs exposing contractors working on or in the following:
- Alterations, additions and demolition greater than 10m high. “What about that basic bathroom fit out in the 4th floor apartment…?”
- In or around foundations of a commercial or industrial building. “What about that new pipe that needs to be located in the basement…?”
- Anyway connected with vibration, underpinning, shoring, dewatering or the removal or weakening of and/or interference with support to buildings or property. “But we need to cut the concrete…”
- Underground services, unless YOU have written advice from the relevant authorities, Dial Before You Dig or similar of the exact location. “But the main contractor told me it was okay to dig there…”
- Bridges, aviation, defence, marine, mining, oil & gas production, petrochemical, power generation, rail and utilities industries.
PLANT and EQUIPMENT.
Most contractors have been advised that they only need to insure their plant and equipment only when located at the business location, being factory, warehouse or home. The risk with this cover is that your P&E are only fully covered for fire! Theft is a fraction of this amount.
DID YOU KNOW most policies DO NOT cover your important P&E (the gear that earns you YOUR income) whilst in transit (from job to job), in a trailer, on site, in the vehicle, whilst the vehicle is parked at an employee’s house, or even being used – doing what you need it to do!
If you are uncertain of whether your current business insurance leaves you, your employees and family at risk, then Darren Williams from National Finance and Insurance has kindly offered a FREE business insurance review to the first 5 clients to contact him. Darren can be contacted on 1800 825 640 or 0424 190 880 or email.