Sean McDermott, Everest Risk Group
We’ve talked about Public Liability and Contract Works (see here), but we’re diving deeper. We’re getting into the nitty-gritty of why a Contract Works Policy isn’t just important—it’s non-negotiable. Grab a cuppa, because this is one you’ll want to read thoroughly.
The Mirage of ‘Being Covered’
Let’s get one thing straight: the term ‘being covered’ is often a mirage in the world of insurance. Sure, you’ve got Builder’s Insurance and Public Liability Insurance, but when you roll up your sleeves and look closer, you find gaps, and these aren’t just tiny cracks. They’re chasms which could put your financial well-being and legal standing in jeopardy.
The Shortcomings of Conventional Insurance Policies
The Halfway Point of Builder’s Insurance
Think of Builder’s Insurance as a half-finished job. It gets you to the ‘lock-up’ stage—the point where your Shed is standing but not yet functional. And then it leaves you hanging, without coverage for anything which happens after. If a storm hits and damages your nearly-completed Shed, you could be out of pocket for the repairs.
Remember, your Shed is uninsured until it has OC, and, if the builder is contracted only to get to lock up stage, if they have Contract Works insurance, that is where their coverage ends, when you get the keys.
Public Liability Insurance—A Policy of Exceptions
It’s in the fine print most of us skip. The Contract Works Activities Endorsement in your Public Liability Insurance can be a trap for the unwary. Anything related to construction, renovation, or similar activities, with a contract value over $50,000, isn’t insured. If an accident happens during these activities, you could find yourself facing not just a financial loss but also legal consequences.
The Imperative of a Contract Works Policy
The All-Encompassing Safety Net
A Contract Works Policy isn’t an ‘extra’ or a ‘nice-to-have.’ It’s an essential policy which acts as a safety net, catching all those risks and gaps other policies conveniently ignore. From the moment you break ground to the moment you receive your Occupation Certification, this policy has you insured.
The Unique Features
What truly sets a Contract Works Policy apart is its comprehensive nature. It covers the building, the materials, and even the public liability aspects during construction. Essentially, it’s your one-stop solution, ensuring you’re not exposed at any stage of your project.
Don’t Roll the Dice on Your Project
Insurance isn’t a game of chance. It’s a strategic move to protect yourself, your assets, and your community. A Contract Works Policy is the linchpin which holds your project together, safeguarding it from unforeseen risks and potential legal tangles. As you plan your next Shed project, make this policy your starting point, not an afterthought.
What can you do?
If you’re planning a Shed project, we encourage you to contact us to learn more about Contract Works Insurance policies.
If you have any questions 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)
