Insurance

Roofing Contractor Insurance

Types of Insurance Required for Roofing Companies in Australia

Being a roofing contractor is a lucrative entrepreneur opportunity in Australia right now. Its a business opportunity that pays well and lets you be the master of yourself at the same time. However, roofing business, like most other businesses, is not free of risks and mistakes can lead to damage of either property or life. It is a sound practice to insure yourself to cover, both the risks involved in the business as well as improving your credibility to potential clients. Apart from these benefits there are some strict guidelines you have to follow while being a roofing contractor in Australia and insuring the business against certain risks is one of them.

Types of Insurance

Generally there are two generic insurance policies usually taken by most roofing companies and contractors. There are some other insurance policies which are required by certain states which is explained further down in the page.

> Public liability Insurance

As we have stated earlier, roofing contracts involve certain risks. One of the major concerns is damage to third parties while the job is on progress. A public liability insurance covers you if your customer or any third party(general public) suffers a damage to property or life as a result of your business and decides to file a compensation claim. The policy covers any damages to be paid to the claimant as well as any legal expenses occurred during the process.

> Surety Bonds

Surety bonds are a type of insurance which covers a business if one of its customer’s isn’t satisfied with the quality of work and wants a compensation for the same. Surety bonds helps you in gaining bigger and better contracts as the clients providing these contracts are usually specific about the quality they need. These are more popular in the United States.

 

Are there any state specific guidelines in Insurance?

  • New South Wales

New South Wales requires every building/roofing contactor to have contract works insurance, a professional indemnity insurance as well as Work Cover, apart from the public liability insurance. The Contract works insurance covers the contractor against damage or loss of materials and work While the professional indemnity cover engineers, architects, certifiers and consultants against claims arising from services provided by them. Work Cover is a compulsory insurance for every workplace in NSW which protects employees and workers working in hazardous or unhealthy environments by covering their medical costs in an event of injury or disease at the site.

  • Queensland

The state of Queensland requires every building/roofing contractor to have Homeowner’s warranty insurance(A type of surety bond) apart from professional indemnity.

  • Australian Capital Territory

Australian Capital Territory requires all roofing contractors as well as builders to have a Residential building work insurance in accordance to the statutory warranties specified by the administration. This is basically a surety bond and is only required for work involving costs higher than 12000 AUD.

All other states and territories follow insurance requirements in compliance with federal policies regarding building/roofing contractors. This generally means that you will need professional indemnity, Work Cover and surety bonds apart from public liability insurances.

Being a roofing contractor involves sound education, planning and financial support incase something goes wrong. This is exactly what a roofing contractor’s insurance does, apart from being a legal requirement.