Unless I list all the eye opening, horrific scenarios, the subject of insurance is mostly met with yawns. I’m so pushy about protection, I could have been a broker. To keep things light, I list the following fundamental insurances - just for your peace of mind while you build.
Public Liability Insurance: You more than likely already have this in place for your existing building. Do advise your broker if you adding to or altering your existing building or require public liability insurance on your new building project. This covers third parties that may be injured anywhere on your property and not just where your contractor may be working.
Contract Works All Risk Insurance: Ensure this is in place by your contractor – it may be in your joint names. This is for all works your builder is working, his staff, and for materials stored on site. Please ensure this includes lateral support insurance.
Existing Building Insurance: This should also already be in place for your existing building in the event of burst geysers, extreme weather induced damage etc. You need to inform your broker/insurance that work is being done to your existing building.
Occupational Health and Safety: All the documentation and safety items that need to be in place by both your contractor and yourself are best organised by a health and safety professional.
Performance Bond: Advances in policies now provide cover in the case of builder’s failure to perform or cannot deliver the project for any reason like bankruptcy.
Professional Indemnity Insurance: Bad design, poor specifications and faulty fittings are not covered by your own insurance. Your architect, engineer, quantity surveyor and other specialists should all be covered by their indemnity insurance. Another form of protection is guarantees and retentions which I will discuss in the next blog.