Rodger Nahas

Account Executive

The construction industry plays a significant role in the growth of the Australian economy. It accounts for a significant percentage of our Gross Domestic Product and is considered one of the largest industries in Australia. It is estimated that almost 75% of all construction is done along the east coast, predominantly in Victoria, New South Wales and Queensland.

The construction industry operates in both the public and private sectors. Work is performed in residential and non-residential construction. The services include building structures, land development, installation work, civil engineering and site preparation.

The range of challenges faced by the industry are varied and broad, ranging from qualified staff shortages, regulatory complexities, legal issues, environment considerations, safety, unions, time constraints, economic conditions and technological changes. Construction insurance is key to cover contractors and construction sites.

What are the exposures?

Below here some exposures in the construction industry that will vary based on the type of work being done. In general, on building sites and high rise buildings, substantial risks can result from a arnage of factors including:

  • Staff Smoking
  • Welding And Hot Works
  • Storage Of Flammable Items
  • Site Security
  • Experience Of Staff
  • Exposure To Natural Elements
  • Failure Of Formwork
  • As Well As Liability To Or Errors Made By Subcontractors

Civil construction has some additional exposure, with an added risk due to the value of accumulation of tools and machinery in one location for the purpose of storage. This is when housekeeping and security becomes essential.

Whilst claims from civil construction may not be frequent, if a claim occurs it could be a catastrophic loss.

Whether insuring an owner/builder or a national builder, our experts have the experience to assist and add value to your project. We work to ensure we identify the most suitable coverage with relevant endorsements to tailor the policy to your business’ requirements.

What can go wrong?

A large number of claims in the last 15 years have included injury to third parties, or workers engaged on the site (worker to worker). It is important to ensure safety, and have an insurance cover for contractors.

A roofing subcontractor working on a 2 level commercial building, fell off the roof as a result of an improper guard rail system. Work cover in Victoria claimed against the contractor on the basis of negligence. A claim was paid to the subcontractor in excess of $120,000.


Construction Insurance or Contract Works Insurance policy includes cover for property damage and legal liability and covers contractors and subcontractors from accidental physical loss during construction project or damage to the building project during the construction period.

Builders may face legal action if there are problems with the structure, regardless of whether you are to blame for the problem. That is why (PI) Professional Indemnity Insurance is essential, as it ensures that your company is covered for any actual risk or alleged design liability.

The process of identifying construction risk and determining how and to what extent it should be shared is known as risk allocation. Most owners understand that risk is an inevitable component of the construction process.

Indemnification for liability arising from a structural defect in completed commercial building projects.

Workers compensation is a type of insurance that pays employees if they are injured at work or become ill as a result of their job or defective work culture.



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