In addition to Contract Works insurance (also known as Builders Risk insurance which should be taken out by either the homeowner or the builder to cover the renovation project), you should also ensure the builder you engage to do the building work also holds current policies for;

  • Public Liability insurance – provides protection from damage or loss to third party property or injury to a third party.
  • Professional Indemnity/Errors & Omissions Indemnity – provides protection if the company or an employee allegedly causes a financial loss as a result of some advice given or action taken (or not given or taken).
  • Statutory Liability insurance – provides cover over any legal costs and/or fines for breaches of any statutory law such as the Building Act, Fair Trading Act, Resource Management Act etc…
  • Employers Liability insurance (if they employ staff) – provides cover for any liability over an injury or illness to an employee that is not covered by ACC.
  • Commercial Vehicle insurance – insures the builder’s vehicles, trailers etc…
  • Tools & Equipment insurance – provides protection over tools, equipment, other assets (eg; phones, scaffolding) and stock.

The details of these insurance policies should be provided to you in a Disclosure Statement which, under Section 362D of the Building Act, is required to be provided to homeowners prior to signing a building contract. The minimum insurance requirements should also be listed within the building contract.

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