Civil Construction Insurance
Help keep your projects on track and your business financially secure with Civil Construction Insurance.
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Why Civil Construction Insurance is Important
Here’s why Civil Construction Insurance is a must-have:
Covers a Wide Range of Risks: From material damage to public liability, it protects against financial losses from accidents, theft or legal claims.
Meets Contractual Requirements: Many contracts, especially with tier 1 builders or government projects, require specific insurance coverage to even start work.
Protects Your Assets: Covers your tools, equipment and materials, whether they’re on-site, in transit or stored off-site.
Supports Business Continuity: Helps you recover quickly from disruptions, keeping your project timelines and budget on track.
Common Risks in Civil Construction and How Insurance Helps
Civil construction projects face unique challenges. Here are some common risks and how insurance can protect you:
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Accidents On-Site
A worker or visitor injury could lead to legal claims. Civil Construction Insurance can cover these costs.
Weather Disruptions
Storms or floods can damage materials or delay projects. The right coverage can help you so you’re not left footing the bill for repair or replacement.
Equipment Issues
Theft or damage to heavy machinery can halt work. Civil Construction Insurance can keep you moving.
Contractual Disputes
Some contracts hold subcontractors liable for incidents, even if they’re not at fault. The right coverage can protect you from such risk.
If your property has multiple owners, you’ll need Strata Insurance instead.
What is Block of Units Insurance?
Block of Units Insurance is a specialised policy designed for owners of multi-unit residential buildings, such as apartment complexes or townhouses, where the entire property is under single ownership.
Unlike Strata Insurance, which covers buildings with multiple owners under a strata title, Block of Units Insurance is for properties where one entity owns all the units.
What Does It Cover
Not all insurance policies are the same and Civil Construction Insurance is tailored to the unique risks of your industry.
Here’s a breakdown of what it covers:
01
Material Damage: This covers physical damage to your project, including materials, tools and equipment. Whether it’s a storm damaging your worksite or theft of materials, this policy helps cover repair or replacement costs.
It can also include:
Materials in transit or stored off-site.
Existing structures at the site before work begins.
Costs for debris removal after an incident.
02
Claims from Third Parties: Essential for any civil construction project, this covers claims from third parties for injuries or property damage caused by your work.
For example, if a passerby is injured due to site activity, this policy can cover medical costs or legal fees.
03
Employee Injuries: This covers medical expenses and lost wages for employees or subcontractors injured on the job.
Requirements vary by state, so ensure your policy complies with local regulations.
04
Professional Errors: If your business provides design or consulting services, this covers claims arising from professional errors or negligence.
For instance, a design flaw leading to project issues could trigger a claim and this policy helps cover legal costs.
05
Equipment Issues: Your machinery, such as heavy equipment like excavators or cranes, is the backbone of your projects. This covers damage, theft or breakdowns, ensuring you’re not left paying for costly repair bills.
Choosing the Right Civil Construction Insurance
Every project is different, so your insurance needs to be tailored. Here’s how to make sure you’re getting the right coverage:
01
Understand Your Project Scope
Larger projects, like bridges or tunnels, may need higher coverage limits than smaller residential jobs.
02
Review Contracts Carefully
Ensure your policy meets all contractual obligations, especially for government or tier 1 builder projects.
03
Consider Annual vs. Project-Specific Policies:
Annual policies often provide better value and continuous coverage compared to project-specific ones.
04
Work with a Broker:
An insurance broker takes the time to understand your business, ensuring your policy covers all risks, from start to finish.
Frequently asked questions
Is Civil Construction Insurance mandatory in Australia?
While not all types of Civil Construction Insurance are legally required, some are:
Workers’ Compensation: Mandatory across Australia, including NSW, for any business with employees or subcontractors. It covers workplace injuries and complies with state regulations.
Public Liability: Often required by contracts, especially for government or large-scale projects, to cover third-party claims.
How does Civil Construction Insurance differ from general business insurance?
Civil Construction Insurance is tailored to the unique risks of construction projects, unlike General Business Insurance which covers broader risks like office property or retail operations. Key differences include:Specialised Coverage: Includes Contract Works Insurance for project materials, Plant Insurance for heavy machinery, and Contractual Liability Insurance for complex agreements.
Higher Risk Exposure: Construction sites face greater risks, such as equipment theft or on-site injuries, requiring higher coverage limits.
Contract Compliance: Policies are designed to meet specific requirements of tier 1 builders or government contracts.
For instance, a road contractor needed specific Contractual Liability Coverage to work on a council project, which General Business Insurance wouldn’t provide.
Can I get one policy to cover all my civil construction projects?
Yes, you can opt for an annual policy that covers all your projects over a year, which is often more cost-effective and convenient than project-specific policies.
Benefits include:
Continuous coverage for multiple sites and projects.
Simplified renewals and administration.
Flexibility to add new projects as they arise.
Alternatively, project-specific policies are ideal for one-off, high-value jobs like a major bridge or tunnel. It’s best to seek the assistance of a broker in assessing your business needs and finding the best approach.