What are the Specific Risks Associated with Builders Insurance?
There are plenty of risks that builders are exposed to every day, even if all workmanship standards are adhered to and all safety precautions taken.
Accidents can happen and issues do arise constantly on worksites all over Australia. Builders Insurance is the best protection that you can get to safeguard yourself, your business and your family when things go wrong.
Although every building project is different, there are several hazards that are common to workers in this area, including:
- Personal Accident: As a builder, your ability to maintain a steady income in the event of accident or injury is severely impaired. On a building site you are exposed to many conditions that can result in bodily harm, particularly when working at height.
- 3rd Party Accident: Equipment such as forklifts and dump trucks can cause serious injury to a member of the public if they are not properly manoeuvred.
- Unsafe Working Area: Home to open holes, trenches and stakes, building sites are extremely unsafe working environments. As a result, builders often sustain job-related injuries.
- Defective Building Works: Builders expose themselves to obligations and liability for up to ten years after construction. Major defects can be a huge cost to builders who, in many cases, are legally required to rectify these issues.
- Extreme Weather: During the building period, your structure is exposed to the elements, which can cause serious destruction or interruption of proceedings. Flooding, storms and cyclones are all commonplace in Australia and can have a huge affect on your ability to conduct business.
- Legal Risk: Threat of facing legal action from customers, suppliers, employees, competitors, investors, or other parties.
- Fire & Explosion: Faulty electrical wiring, as well as exposed wires, can be a cause of electrocution, and even fires on a building site which can not only affect the structure and equipment but also injure builders and contractors.
- Machinery & Vehicles: Construction sites rely on machinery and vehicles to carry out their daily operations. Replacing equipment in the event that it is damaged or stolen can be a huge financial burden for the company.
As a builder, it is possible to reduce the risk that you are exposed to by evaluating and taking steps to minimise your risks. However, it’s important to back up your prevention strategies with a comprehensive insurance policy that can fully protect your business, employees and the general public.