Specialists in the building industry
CBA INSURANCES
ARE SPECIALISTS
IN INSURANCE FOR BUILDERS
AND TRADESPEOPLE.
WE PROVIDE TAILORED,
COST EFFECTIVE COVER
FOR ALL MEMBERS OF
THE CERTIFIED BUILDERS
ASSOCIATION.
WHY USE AN
INSURANCE
BROKER?
An insurance broker is an
independent specialist
professional adviser
who acts for you, not the
insurance company.
Our task is to help you identify the risks that
you and your business may be exposed to. We
provide friendly, helpful advice about what
risks you should be insured against. If you
agree, we will canvas the entire insurance
market to obtain the best possible insurance
protection to meet your individual needs
and at the most competitive price. Then we‘ll
arrange the insurance policy
and documentation on your behalf.
If you need to make a claim, we help you
through the process. We can even help or
offer advice if you’re making claims with
other insurance companies.
Whether it’s personal or business, having the
correct insurance is vital. The wrong or
inadequate protection can lead to disaster
for individuals, families and / or businesses.
The right advice makes all the difference and
prevents costly mistakes.
BUSINESS INSURANCE EXPLAINED
Here we explain some of the most common policies that
builders should consider.
PUBLIC LIABILITY
Provides protection from damage to third party property or bodily injury. Public Liability (PL) insurance is essential for builders and sub-contractors, preferably cover that is specially tailored to meet their needs, such as that provided by Builtin New Zealand.
One of your sub-contractors accidentally screws through a pipe, which results in water damage for which you are held liable as the main contractor.
“I was doing an alteration and had taken off the roof. I covered it with tarps overnight, but strong winds hit, along with driving rain. Worse still, it was deemed my fault for not securing the tarps well enough! The homeowner’s insurance company had me up for the $40,000 damage to carpets and other household contents.”
FAULTY WORKMANSHIP COVER
(DELETES THE EXCLUSION FROM PL)Provides cover for damage caused by faulty workmanship. This is usually excluded from most public liability policies, although resultant damage is covered.
PROFESSIONAL ADVICE OR SERVICE COVER
(DELETES THE EXCLUSION FROM PL)Provides cover for damage arising from professional advice or services provided by the builder. Again, this can be an exclusion from some public liability policies, but can be a source of claims by builders and tradespeople who are giving advice to homeowners.
DEFAMATION COVER
Protects against infringement of trademarks, copyright and registered designs, along with unintentional defamation.
A builder was talking to his mates in the trade about the poor workmanship of another person, who then took him to court for lost earnings because of the work they missed out on when no one would use him. A builder was taken to court for breach of copyright when they accidentally used someone else’s design to build a house.
ERRORS AND OMISSIONS (E&O) INDEMNITY /
PROFESSIONAL INDEMNITY
Provides cover for legal costs and damages if you, your company or employees are taken to court for allegedly causing someone a financial loss, as a result of something done or said (or not done or said) in the course of your work. If you are worried about your 10 year liability under the Building Act, or getting caught up in a leaky homes case, you should consider E&O.
A builder accidentally uses the wrong gauge of steel in a foundation. This is not picked up until it fails the inspection and has to be demolished and re-laid.
A builder is forced to defend himself from claims that he was involved in the construction of a home that became a leaky building, resulting in a large financial loss for the homeowner, who is demanding compensation.
CONTRACT WORKS INSURANCE
(PREVIOUSLY KNOWN AS CONTRACTORS OR BUILDERS ALL RISK)
Covers loss of or damage to property that’s being built or altered. Examples of claims include theft of materials from site, fire and flood damage. Note, the policy may not cover theft of or damage to tools and equipment, such as scaffolding, from site.
“$15,000 worth of custom made windows were delivered to site at 4pm, to be fitted the following morning. When I arrived on site they were all missing”.
COMMERCIAL MOTOR VEHICLE
Protects your business vehicles anywhere in New Zealand. Comprehensive, Third Party Only or Third Party, Fire and Theft options are available.
TOOLS, PLANT AND EQUIPMENT
Covers loss of or damage to your tools and equipment anywhere in New Zealand. Includes tools and equipment borrowed or hired by you. Doesn’t cover office equipment, phones or computers.
EMPLOYERS LIABILITY
If you employ staff this insurance will provide cover for your liability for personal injury (not already covered by ACC) to any of your employees. Cover includes legal defence costs.
An apprentice working in a dusty environment develops a lung infection and is unable to work. The employer was found liable for not providing adequate ventilation and masks.
EMPLOYMENT DISPUTES LIABILITY
Provides protection to employers for personal grievance actions taken by employees and prospective employees as a result of unjustified dismissal, discrimination or other disadvantage.
SUB-CONTRACTORS PAYMENT GUARANTEE
Pays 75% of the money owed to you if your main contractor goes bust and can’t pay your outstanding invoices.
STATUTORY LIABILITY
This provides cover for legal costs and fines for some breaches of Statute, such as the Resource Management Act, Building Act, Fair Trading Act, and the Consumer Guarantees Act. Occupational Health and Safety legislation means you can’t insure against OSH fines. Your policy should include cover for fines and penalties levied by the Building Practitioners Board.
A builder was fined by the local environment agency when left over paint accidentally spilled into a public drain.
A builder was fined under the Fair Trading Act for misrepresentation when a client complained that his final bill was more than three times his original quote.
LBP INSURANCE
A number of insurers have introduced separate cover to pay the costs of defending your license, and any fines, if someone makes a complaint to the Building Practitioners Board. Depending on the insurance company, this cover may only be available if you sign up to their PL and/or Statutory Liability insurance. You should check whether license defence cover is already included in your existing PL and/or Statutory liability policy, as it is with Builtin’s. LBP Insurance may also include cover for costs resulting from errors in the Records of Work documentation that LBPs are now required to submit.
DIRECTORS’ AND OFFICERS’ LIABILITY
Provides protection for directors and officers for wrongful acts committed within their capacity as a director or an officer. Cover includes defence costs.
MATERIAL DAMAGE
Protect your buildings, as well as stock, plant and machinery located on a specified site such as a yard.
OFFICE EQUIPMENT AND DATA
Covers the cost of replacing office equipment and lost data.
CARGO (GOODS IN TRANSIT)
Protect materials and stock whilst they are being delivered.
A Christchurch builder ordered and paid for a kitset and some other custom made components from a company in Auckland. The truck delivering them crashed en route, with the builder left more than $50,000 out of pocket.
BUSINESS INTERRUPTION
Covers fixed expenses and replaces lost profits as a result of an event that interrupts the operations of the business, such as a fire, flood or earthquake.
