Sean McDermott, Everest Risk Group
While your hands may be busy with woodworking, art, or community service, let’s take a moment to discuss something equally crucial: how Public Liability Insurance meshes with the Contract Works Activities Endorsement under our AMSA Insurance Program.
Public Liability Insurance: What’s Insured?
Public Liability Insurance protects your Shed against legal liabilities arising from injuries or property damage inflicted upon third parties during Shed activities – per the activities list.
Key Point: These activities are generally insured under Public Liability, with no cap on the project cost, unless otherwise stated in the policy.
Contract Works Activities Endorsement: The Fine Print
What Are Contract Works Activities?
These are specialised activities which involve construction, renovation, or technical tasks. The specifics are outlined in the insurance policy, and they come with certain limitations and exclusions.
What’s the $50,000 Limit About?
Projects defined as “Contract Works Activities” are only insured if they occur:
- on property owned or occupied by the Shed; and,
- are refurbishment, renovation, alteration, or addition works; and,
- the total project cost doesn’t exceed $50,000.
Examples of Activities Not Insured Under Contract Works
- Laying Pipes or Cables: Infrastructure work like laying pipes or cables is not insured.
- Large-Scale Construction: Any construction or extension not on Shed-owned or occupied property is not insured.
- High-Cost Projects: Any project whose cost exceeds $50,000 is not insured.
- Telecommunication Setup: Installing telecommunication lines or systems is not insured.
- Tunnelling or Piling: Subsurface work, including tunnelling or piling, is not insured.
- Demolition Work: Any form of demolition is not insured unless it meets the specific criteria.
- Electrical Installations: Installing or maintaining electrical systems is not insured under Contract Works.
- Offsite Work: Any Contract Works Activities performed at a location not owned or occupied by the Shed is not insured.
- Specialised Mechanical Work: Tasks like installing industrial machinery are not insured.
- Hazardous Activities: Activities involving the use of hazardous materials are not insured under Contract Works.
Why This Matters to You
- Financial Liability: Taking on a project which falls under “Contract Works Activities” without understanding the limitations could expose your Shed and Committee to financial risks.
- Legal Repercussions: Australian Insurance Law makes it your responsibility to fully understand what your insurance covers and doesn’t cover.
Your Action Plan
- Check Your Policy: Before starting any new project, refer to your Public Liability and Contract Works Activities Endorsement to understand the scope of coverage.
- Consult with Us: When unsure, a quick consultation with us can provide clarity and potentially save you from costly mistakes.
In Short
The Contract Works Activities Endorsement excludes coverage for any liability arising from Contract Works Activities, unless the work is done on your own property or rented property, and the total cost of the project does not exceed $50,000.
Insured Contract Works Activities include:
- Refurbishment, renovation, alteration, or addition works;
- Where the Project does not exceed $50,000; and
- Where the Project is done on property owned or leased by you
If you have any questions about the Contract Works Activities Endorsement, please contact:
Sean McDermott, Everest Risk Group E: [email protected]
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.
Everest Risk Group Pty Ltd are Corporate Authorised Representative No 276869 of Insurance Advisernet Australia Pty Ltd – Australian Financial Services Number 240549)
