Builders Insurance Victoria

There are a range of different types of insurance required by builders operating in Victoria.

When considering builders insurance there are two different sides to look at, and the types of cover you require will generally come from both sides depending on the type of business you operate.

On one side you have business insurance, which incorporates cover such as public liability and tool cover, and on the other side you have personal insurance, which incorporates income protection and life insurance.

In this guide we will take a look at the types of builders insurance available on both sides.

Public Liability Insurance

All builders in Victoria will either require public liability insurance or will be strongly advised to consider such cover.

Whether or not you require public liability insurance will depend on your employment status and business structure, as well as the type of work you undertake.

If you are employed on wages and working under someone else’s licence then you may not require this cover, however if you are a subcontractor or a builder in your own right then you will most likely require your own cover.

Tool Insurance

It is not mandatory for Victorian builders to hold tool insurance, but it is certainly a good idea.

Tool insurance will protect your tools financially in the event of loss or damage. The specific events covered by a tool insurance policy will vary from one company to the next, however generally you will be covered for theft from a secure location, fire damage and damage caused in a vehicle collision.

Tool insurance is generally quite inexpensive considering the protection that it offers, and the cover is strongly recommended for all builders operating in Victoria and elsewhere around Australia.

Income Protection Insurance

As a self-employed builder you will generally not be entitled to sick leave, unless you are paying yourself sick leave from your own company of course. Regardless, the end result is that you are not out there earning your own money.

One of the easiest ways to protect your income in the event that you cannot work due to illness or injury is to take out an appropriate income protection insurance policy.

Income protection for builders is available with a range of different options which affect the level of cover provided along with the premium payable. Although income protection is considered to be a personal form of insurance, it is still 100% tax deductible for all workers.

Life Insurance

Many licensed builders, especially those undertaking their own projects, will carry a lot of debt associated with their company. To avoid passing these debts on to loved ones it is important to consider life insurance.

Life insurance can provide a lump sum amount that your family can utilise to repay business and personal debts, and also to provide an ongoing income after your passing whilst they get back onto their feet.

Unlike income protection, life insurance is not tax deductable, but it is still a very important form of financial protection for any builders.

Other Types of Insurance

Switching back to the business side of insurance, there are many other forms of cover that a builder in Victoria may require.

Some of these covers may include builders warranty insurance, builders all risk insurance, contract works insurance, business expense insurance and key person insurance.

These forms of insurance can be more complex, so it is best to sit down with your builders insurance broker to discuss which of these covers you require and how they should be structured to suit your and your business.

If you would like to discuss your builders insurance please get in contact with us. We can assist builders in Victoria as well as those located in other areas of Australia.