Special Industry Insights explainer
The old driveway is coming out. The excavator swings, a fence panel cracks and the neighbour wants to know who will put it right. The homeowner hired the builder. The builder hired the excavation contractor. Both say they’re insured. What does that actually tell the neighbour?
Start with whose property was damaged
Public liability insurance can protect a business against claims that its activities caused someone else an injury or damaged their property. In the fence example, the first questions are who owns the fence, what happened and which business was doing the work. The insurer then considers the facts, the insured business’s legal liability and the terms of its policy. Hiring the excavator, or finding its name on a certificate, does not settle who pays. HIA’s guide to engaging contractors explains why builders should ask their trades for evidence of cover.
Change one detail and it becomes a different conversation. If the driveway itself was laid badly, start with the builder and the contract to put the work right. If a storm damages the unfinished extension, ask about construction works cover. For a renovation, also tell your home insurer what work is proposed and ask how the existing house will be covered while it happens. These questions can involve different policies on the same site. HIA explains the different types of building insurance.
Read beyond the dollar figure
Before work starts, ask for a current certificate of currency. Put it beside the signed contract. Does the insured name match the business you hired? Do the dates cover the planned start, and when will the policy need renewing? Does the liability limit meet the amount required by your contract? A certificate gives you a snapshot. The policy wording and any special conditions tell you more about which activities and claims are covered.
Give the broker something specific to check. “We’re excavating beside an existing boundary fence, and a subcontractor will operate the machine. What cover and exclusions apply to that work?” is a much better question than “Are we covered?” Ask for the answer in writing and keep it with the quote and scope. If the excavation changes, revisit that answer with the revised scope in front of you.
When several trades share a site
For builders, keep a record of the trade’s legal name, the work they have agreed to do and when their insurance expires. For homeowners, be clear about any trades you engage directly. If your own landscaper is digging beside the builder’s work, tell both businesses who arranged it and when it is happening. Each can then check its responsibilities before the machine turns up. Business.gov.au’s contractor insurance guide is a useful starting point.
In NSW, home building compensation cover serves a separate purpose. Where the scheme applies, the homeowner can check the project on the public register. A builder’s public liability certificate does not establish that project-specific cover. Check SIRA’s guidance for your NSW project.
If the fence does come down
Make the area safe first. Record the time, location and who was on site. Take photos if it is safe, let the neighbour know who will follow up, and notify the relevant insurer or broker promptly under the policy. Give them the facts before promising a particular claim outcome. Even a small incident is easier to deal with when everyone already knows whose number to call.
At your next pre-start meeting, pick one realistic risk from your drawings and ask the builder to walk you through it. Beside the boundary, who does the work? Who checks the cover? Who makes the call if something goes wrong? Write those names down. That single conversation gives “we’re insured” some practical meaning.
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