Although we often refer to builders insurance as if was a single type of cover, this name actually refers to a number of different policies that help builders to manage their risks.
Builders are exposed to all sorts of risks. Some of those risks relate to property damage, whilst others relate to personal injury or death – either of members of the general public, the builder’s staff and subbies, and of course the builders themselves.
Insurance cannot stop these things from happening, but it can go a long way in protecting a builder from the financial impacts that can occur when things go wrong.
There are a million things that can happen to a builder in the course of each day’s work, and holding the right insurance can be absolutely invaluable in many of these cases.
Let’s take a look at a few examples of the risks that builders face and how insurance can help them:
My tools have been nicked…
There’s nothing worse than walking out to your ute or trailer in the morning and noticing that something doesn’t look quite right. When you get closer, you suddenly realise that some low-life has taken your tools.
Without insurance you’d have to dig into your own pocket to replace the tools, which for some builders could be worth tens of thousands of dollars. But with tool insurance, you just have to make a call to your broker and they will help you through the claim process, with the insurance company paying for new replacement tools.
I’ve stuffed up this job…
It can happen to even the best builders. You’re trying to get something finished on a Friday afternoon and you’re pushing a little harder to get the job done. Oops, suddenly you’ve stuffed something up, and it cannot be fixed easily.
These stuff ups can be expensive, and even a minor bill of $1,000 is going to ruin your weekend. With public liability insurance you can cover these little mishaps and save your hip pocket. You’ll still have to pay an insurance excess, but it will be a lot cheaper than footing the whole repair bill.
I think I’ve hurt my leg…
No matter how careful we are, accidents can and do happen on worksites all over Australia every day.
If you tripped on the job site – or even doing something completely unrelated on the weekend – and broke your leg, how long do you think you’d need off work? It could be months before you are back up to speed and able to get around the site with full use of your leg.
As a self-employed builder or subbie you don’t have any sick leave, so you’re not going to earn any money for a couple of months at least. You might not be working, but there are still plenty of bills to pay for the business as well as feeding your family and paying the mortgage.
Income protection can help you here by paying up to 75% of your income every month until you can get back to full time work. This money will allow you to keep paying your bills and looking after your family. You can also combine this cover with business expense insurance which can cover your fixed business expenses whilst you cannot work.
It can get a lot more serious for builders
The above examples are very common, but pretty minor in the scheme of things considering the other risks that builders face.
What if your work caused property damage worth hundreds of thousands? What if your work resulted in someone’s serious injury or death? These cases can cost builders millions in court awarded damages.
Thankfully public liability insurance can be had for anywhere between $5 and $20 million, and even higher in some special cases. This should be more than enough to cover even the most serious incidents.
Then we get back to your own personal situation. What if you suffered an injury or illness that was so serious you could never work as a builder every again? What if you were to die prematurely due to an injury or serious illness?
Any of these events could have a financially devastating effect on your family, and in many cases they can lead to bankruptcy for a builder or their family.
Thankfully covers including life insurance, TPD insurance, trauma insurance and income protection to age 65 can provide serious financial protection to cover you and your family in the event that anything serious happens to you.
Builders insurance helps
Whether you work on the tools or off the tools, having the right builders insurance package in place is so important if you care about yourself, your business and of course your family.
Most forms of builders insurance are reasonably priced, and many of them are fully tax deductible.
If you’d like to have a chat about your builders insurance requirements please give us a call, or simply complete our online quote request which can tell you just how inexpensive some good builders insurance could be for you.