INSURANCE 101 FOR BUILDERS

fnitm_login Building Act Changes

With the new rules coming into force next year, we take the time to explain some of the most common insurance and guarantee options for builders, and highlight some of the common exclusions.

New Building Act rules that come into force from 1st January 2015 will require builders to declare to customers the insurance and guarantees they have, including limits and “relevant exclusions”. As it stands it’ll be up to individual builders to decide which exclusions are relevant. But should you be expected to know this, and what if you get it wrong?

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It should be noted that these guarantees are purely to protect the customer. They provide no benefit to the builder, other than differentiating you from builders who can’t offer them.

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Builders will be required to declare the insurance and guarantees they have

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The best way to assess your specific insurance needs is to conduct a risk assessment of your situation. An insurance broker (preferably one with experience of the construction sector) is a good place to start.

Once the new regulations come into force you will be expected to disclose to your clients the relevant exclusions in your insurance. We recommend taking advice now to ensure you get this right from day one.

This article is not exhaustive and there are other policies to cover different risks. In addition, individual policy wordings from different insurers may vary. You should refer to the specific exclusions in your own policy wordings and discuss your situation with an insurance professional if you are unsure.
BuiltinNZ

Builtin New Zealand is a specialist in insurance for the construction industry. For more information visit www.builtin.co.nz, email Ben Rickard at ben@builtin.co.nz or call him on 0800 BUILTIN.

 

fnitm_loginINSURANCE 101 FOR BUILDERS