DEMOLITION INSURANCE CASE STUDY
Sole Trader Residential Demolition, $20M Public Liability Placed for a Licence Application
A demolition contractor with eight years' experience needed $20 million public liability quickly to support a licence application. One market declined the occupation, one declined on target premium, and one specialist market quoted.
THE SITUATION
A sole-trader demolition contractor in Sydney called Tank Insurance needing $20 million public liability in place quickly. The client wanted the cover in place to support a demolition licence application, with the licence expected about four weeks after the policy was arranged.
The business had eight years' industry experience, turnover of around $240,000, no employees, subcontractors or labour hire, and worked on residential demolition using excavators to a maximum height of 15 metres.
OUR APPROACH
- The method, height and scope were stated: excavator demolition, 15 metre maximum, residential work in Sydney, contracted for demolition only.
- Three specialist markets were approached. One declined on occupation, one declined once the target premium was disclosed, and one quoted.
- The policy commenced the day the proposal and stamp duty declaration were signed, so the licence application could proceed.
THE CHALLENGES
Demolition is usually written by specialist liability markets rather than business packs, and a sole trader without an existing policy has no expiring schedule to anchor a submission. The experience, the method and the height limit were the facts that let the specialist market rate the risk.
THE OUTCOME
$20 million public liability was placed with Sterling at a premium of approximately $6,900 a year, with the NSW small business insurance duty exemption applied on the client's declaration.
Final Solution: $20 million public liability for a sole-trader demolition contractor at around $6,900 a year, in place before the licence application.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our demolition and asbestos removal insurance guide.
DEMOLITION CONTRACTOR QUESTIONS
What this placement answers for other demolition contractors
How much is public liability for a demolition contractor?
Do I need insurance before I can get a demolition licence?
Why would an insurer decline on target premium?
DEMOLITION AND ASBESTOS
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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