Stop Press: Law changes for Building Industry – 1st January

You will no doubt be aware of the new law changes which come into effect on 1 January 2015.
The changes will affect most builders and other trades, with the introduction of new requirements.
This newsletter addresses any Insurance questions you may have.

What’s new?

The new law includes providing correct pre-contract disclosures to all customers (your skills, experience and qualifications), having written building contracts, provide a check-list of the client’s entitlements, supply details of the materials they use and being available to attend to customer-reported defects for a 12-month period.Included in these requirements is to supply a current copy of your Public Liability Insurance certificate. (Public Liability insurance provides compensation to third party property and/or bodily injury to a third party where it is determined or alleged that you have liability for the resulting damage).

Does my current Insurance cover me?

  • In most instances, your current Liability insurance cover is sufficient and there are no “new” requirements. It just means that you will need to produce evidence that you have this cover.
  • All Contract Works/Builders All Risks polices include a maintenance period that follows completion of the works. (This covers you for building defects/issues that you are responsible for that surfaced after completion).Most Insurers have the option to provide cover for up to 12 months immediately after completion of works.If you are the main contractor and provider of the project Contract Works/Builders All Risks insurance, then potentially your new requirement to attend customer-reported defects for a 12-month period can be covered under this policy.Note: If you have not provided the Contract Works policy for the project (e.g. the principal has taken out the policy, or you are acting as a sub-contractor) then potentially you may still be covered.However, this will be conditional upon you i) having a Public Liability policy – the main contractor’s insurer may wish to recover damages off you, ii) confirming that sub-contractors are covered under the main contractor’s policy, and iii) the loss falls with the maintenance period of the insurance policy.

Contact us

Contact us if you do not have a current copy of your Public Liability insurance certificate on record, and we will obtain this for you.In addition, if you have any questions regarding the scope of your insurance policies, we welcome your enquiry anytime.