Demolition Contractors Insurance

Contractor Plant and Machinery Insurance may be relevant if a demolition contractor owns, hires or operates excavators, skid steers, loaders, crushers, pulverisers, elevated work platforms or other mobile and specialised machinery.

Tools and Equipment Insurance may not cover larger plant, demolition attachments or hired-in machinery unless the equipment and its use are declared to and accepted by the insurer.

Cover may include:

• Theft, fire, storm, vandalism and accidental damage to insured plant
• Owned plant and hired-in plant, where included
• Excavators, loaders, skid steers, telehandlers, elevated work platforms and other declared machinery
• Hydraulic breakers, pulverisers, shears, grapples, buckets and other declared demolition attachments
• Crushing, screening or material-processing equipment, where declared and accepted
• Plant in transit, storage or use on demolition sites, where covered
• Registered or unregistered plant, depending on the policy
• Wet hire and dry hire exposure, where declared and accepted
• Damage waiver arrangements for hire customers, where available
• Machinery breakdown cover, where available

Contractor Plant and Machinery Insurance is commonly considered by mechanical demolition contractors, excavation and demolition businesses, civil contractors and demolition companies operating heavy plant and specialised attachments.

Using plant in demolition work, on suspended floors or around unstable structures may require additional insurer information. The intended use of the equipment should be accurately declared.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Tools and Equipment Insurance, which insurers may refer to as General Property Insurance, can help cover insured tools and portable equipment used by a demolition contractor, subject to the policy wording.

Demolition contractors often move hand tools, power tools, cutting equipment, testing equipment, dust-control equipment and portable site equipment between vehicles, yards and demolition sites.

Small Contractors 1 to 5 Employees

For sole traders and small demolition crews, Tools and Equipment Insurance may cover declared tools and portable items stored in vehicles, trailers, workshops, yards or at work sites.

Covered items may include:

• Hand tools and power tools
• Concrete saws, demolition saws and cutting equipment
• Jackhammers and portable demolition equipment
• Testing and measuring equipment
• Portable dust suppression or extraction equipment, where accepted
• Safety equipment, signage and barriers
• Laptops, tablets or portable electronic equipment used for work, where included
• Tools and equipment stored in vehicles or trailers, where declared and accepted

Larger Contractors

For larger demolition contractors, Tools and Equipment Insurance may be structured around multiple crews, vehicle setups, yards, storage locations and scheduled high-value equipment.

Cover may be arranged for:

• Multiple tool kits used by different demolition crews
• Equipment stored across yards, workshops, depots, vehicles and project sites
• Portable equipment used across several demolition projects
• Scheduled cutting, testing or specialist equipment
• Hired-in or borrowed equipment, where available

Cover away from insured premises, overnight theft from vehicles, unattended equipment and theft without forcible entry may be limited or excluded. Storage and security requirements should be checked against the policy wording.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Commercial Vehicle Insurance may cover eligible vehicles used by demolition contractors, including utes, trucks, tippers, service vehicles, trailers and other work vehicles. Available cover depends on the vehicle, its use, drivers and the selected policy.

Demolition contractors can depend on vehicles to transport workers, tools, attachments, equipment and materials between yards, disposal facilities and project sites.

Small Contractors 1 to 5 Employees

For sole traders and small demolition crews, Commercial Vehicle Insurance may cover declared vehicles used for business travel and transport between demolition sites.

Cover may include:

• Utes, vans, tippers, trucks and other eligible business-use vehicles
• Plant floats and trailers, where declared and accepted
• Accidental vehicle damage, fire or theft, depending on the selected cover
• Third-party property damage liability arising from use of an insured vehicle
• Declared site access and off-road use, where accepted
• Finance clauses or interested party endorsements, where required and available

Larger Contractors

For larger demolition contractors, fleet insurance may provide one arrangement for multiple eligible vehicles used by different drivers, crews and project locations.

Fleet cover may help manage:

• Multiple eligible vehicles under one policy arrangement
• Vehicle additions and removals as the fleet changes
• Utes, tippers, trucks, service vehicles, trailers and other declared vehicles
• Different vehicle uses and driver arrangements, where accepted
• Transport between demolition sites, yards and disposal facilities, where accepted
• Finance and leasing requirements
• Claims support across multiple insured vehicles

Tools, plant, salvaged material or other property carried by a vehicle may require separate cover. Commercial Vehicle Insurance is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Contract Works Insurance may be relevant where a demolition contractor is also responsible for insured construction, alteration, remediation or make-good works under a broader construction contract.

For demolition businesses, this may apply where a project combines demolition with structural alterations, refurbishment preparation, temporary works or other insured construction work. The insured works and the contractor’s responsibilities should be clearly identified.

Cover may include:

• Insured works in progress
• Materials stored on site
• Theft, vandalism, fire or storm damage to insured works
• Project-specific or annual cover options
• Materials in transit or temporary storage, where included
• Principal-supplied materials, where covered
• Existing structures, temporary works or other declared property, where accepted

A builder, developer, principal contractor or project owner may require Contract Works Insurance where the demolition contractor is responsible for part of a broader construction project.

Contract Works Insurance should not be assumed to insure a building or structure that is intentionally being demolished. It also does not automatically cover every party, delay or contractual obligation. The insured property and scope of works should be confirmed against the policy.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Professional Indemnity Insurance may be relevant if a demolition contractor provides or assumes responsibility for professional advice, demolition planning, engineering input, calculations, specifications, reports, project management or other professional services.

Professional Indemnity Insurance becomes more relevant where a client, principal or another party could allege that professional advice, documentation, sequencing or design work was incorrect, incomplete or negligent.

A demolition business may consider this cover if it:

• Prepares or takes responsibility for demolition plans or methodologies
• Provides structural, engineering or technical advice
• Prepares calculations, reports or specifications
• Provides advice about demolition sequencing or temporary support arrangements
• Provides project management or consulting services
• Works under design-and-construct or similar contracts
• Certifies, inspects or signs off professional work, where qualified to do so
• Must hold Professional Indemnity Insurance under a contract

Cover may include:

• Legal defence costs for insured claims
• Claims alleging breach of professional duty
• Claims linked to covered advice, reports, specifications or professional documentation
• Retroactive cover for eligible past work, where included

Professional Indemnity Insurance is separate from Public Liability Insurance. Public Liability Insurance may respond to certain third-party injury or property damage claims, while Professional Indemnity Insurance may respond to certain claims linked to professional advice or services.

Professional Indemnity Insurance should not be assumed to cover engineering or design work performed by another consultant or subcontractor. Contractual responsibility and the services being provided should be declared accurately.

Cover is subject to policy terms, conditions, limits, exclusions, retroactive dates and insurer acceptance.

Personal Accident and Illness Insurance may be considered by sole traders and demolition contractors who are not entitled to Workers Compensation Insurance for their own injuries or illnesses. It can provide a financial benefit if an insured injury or illness leaves the insured person unable to work, subject to the policy wording.

A self-employed demolition contractor may depend on personal labour to earn income. Time away from work after an injury or illness can affect that income, even if the incident did not occur at work.

Cover may include:

• Weekly benefit payments for an insured period of temporary disablement
• Lump-sum benefits for specified injuries or events, where included
• Illness cover, where selected and accepted
• Capital benefits for specified permanent disablement or death, where included
• Certain non-Medicare medical or rehabilitation expenses, where the policy permits

Waiting periods, benefit periods, occupation definitions, exclusions and maximum benefits can affect when and how much a policy may pay.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Workers Compensation Insurance is generally required when a demolition contracting business employs workers. The legal definition of a worker and the insurance requirements vary by state and territory. The applicable scheme may depend on where workers are based, where they perform work and how the workforce is structured.

All Trades Cover can only offer Workers Compensation Insurance in Western Australia due to licensing restrictions. Demolition contractors operating in another state or territory should arrange cover through the relevant workers compensation scheme or an authorised provider for that jurisdiction.

For eligible Western Australian demolition contractors, All Trades Cover may be able to help with:

• Workers Compensation Insurance setup and placement
• Wage estimates and annual wage declarations
• Worker classification considerations for employees, apprentices, casuals and working directors
• Subcontractor and labour hire information for insurer review
• Principal’s Indemnity, where required and available
• Claims lodgement support
• Insurer correspondence and claim-related paperwork
• Renewal discussions where claims history has affected the premium or insurer terms

Workers Compensation Insurance is commonly relevant for demolition businesses with employees, apprentices, eligible working directors or worker arrangements that fall within the applicable legislation.

All Trades Cover can support eligible Western Australian clients through the claims process, but the insurer and applicable workers compensation law determine claim outcomes.

Requirements and available assistance depend on the jurisdiction and circumstances. Cover is subject to workers compensation legislation, scheme requirements, policy terms, conditions, limits, exclusions and insurer acceptance.

Business Package Insurance can combine several business covers within one policy structure. The sections selected may cover property, liability, business interruption and other declared business risks.

For demolition contractors operating from an office, workshop, depot, yard or storage facility, a Business Package may include:

• Public and Products Liability
• General Property cover for insured tools and portable equipment
• Property cover for offices, workshops, depots, yards or storage areas
• Theft and vandalism cover for insured property
• Business Interruption cover following an insured event
• Money, glass or electronic equipment cover, where relevant
• Machinery breakdown or other optional sections, where available

Business Package Insurance is commonly considered by demolition contractors with premises, spare parts, tools, portable equipment, office contents or administration systems.

Each policy section has its own insured events, limits and exclusions. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Management Liability Insurance may respond to certain claims involving the management of a private company and the actions of its directors, officers or managers. Depending on the policy, this may include claims involving employment practices, governance, statutory obligations or alleged wrongdoing.

As a demolition contracting business employs staff, engages subcontractors and takes on more projects, management-related exposure may arise from workplace decisions, employment disputes, regulatory investigations, payroll matters or decisions made by directors and senior managers.

A policy may include:

• Directors and Officers Liability
• Company Liability, where included
• Employment Practices Liability for certain claims such as unfair dismissal, discrimination or harassment
• Statutory Liability, where available and legally insurable
• Crime or fidelity cover for specified internal or external fraud or theft
• Tax audit or regulatory investigation costs, where included

Management Liability Insurance may be considered by incorporated demolition businesses that employ staff, engage managers, use subcontractor crews or have contractual and regulatory obligations.

Fines and penalties are not always legally insurable, and policy sections can have different limits and exclusions. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Management Liability Insurance may be considered by incorporated demolition contractors that employ staff, engage managers, use subcontractor crews or carry contractual and regulatory responsibilities.

Fines and penalties are not always legally insurable, and policy sections can have different limits and exclusions. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Tax Audit Insurance may cover certain professional fees if the insured business is audited, reviewed or investigated by the Australian Taxation Office or a state revenue office. Subject to the policy, this may include fees charged by an accountant, bookkeeper or tax adviser to prepare records and respond to the authority.

Tax Audit Insurance may be relevant for demolition contractors that report business income, GST, payroll, superannuation, vehicle costs, plant purchases, depreciation or subcontractor payments.

Cover may include:

• Accounting or tax adviser fees for an insured audit or review
• ATO reviews involving income tax, BAS or GST, where covered
• Payroll tax or superannuation reviews, where covered
• State revenue office reviews, where included
• Professional costs to review records and prepare a response, where included

Tax Audit Insurance does not usually cover tax liabilities, amended assessments, fines, penalties or interest payable to a revenue authority.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Cyber Insurance may cover certain financial, legal and operational costs arising from an insured cyber incident. Relevant incidents may include phishing, ransomware, data breaches, invoice scams or business email compromise.

Cyber Insurance may be relevant for demolition contractors using estimating software, cloud accounting, project management platforms, digital payroll, online invoicing or systems containing employee, client and subcontractor information.

Cover may include:

• Cyber incident response costs
• Data restoration and system recovery
• Business Interruption losses following an insured cyber event
• Legal, forensic and notification costs for an eligible data breach
• Ransomware and phishing response support
• Invoice redirection or social engineering losses, where available
• Third-party liability arising from covered exposure of client, contractor or employee data

Cyber policies may require the business to maintain specified security controls, such as multi-factor authentication, backups and software updates.

Cover is subject to policy terms, conditions, limits, sub-limits, exclusions and insurer acceptance.

Business Interruption Insurance may help a demolition contracting business manage certain lost income and additional operating costs following an insured event that disrupts normal trading. It is commonly arranged as part of Business Package Insurance or alongside insured property cover.

For demolition contractors, an interruption may follow insured damage to a workshop, depot, stock, tools or other business property. Cover generally depends on the underlying cause of the interruption being insured under the relevant policy section.

Cover may include:

• Loss of insured gross profit, revenue or income during the indemnity period
• Additional operating costs reasonably incurred to continue or restore the business, where covered
• Fixed business expenses that continue during an insured interruption, subject to the policy basis
• Temporary premises, equipment hire or relocation costs, where included
• Claim preparation costs, where included
• Specified supplier, customer, public utility or access interruption extensions, where available

Business Interruption Insurance does not usually respond simply because a demolition contract is delayed, work is suspended, plant is unavailable or a project is cancelled. The interruption generally needs to result from an insured event and satisfy the policy’s waiting periods, indemnity period, limits and other conditions.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Marine Transit Insurance may cover insured goods, tools, equipment, machinery components or other property while being transported between locations. Despite the name, cover may apply to eligible transit by road, rail, air or sea, depending on the policy.

Demolition contractors may consider Marine Transit Insurance when transporting tools, attachments, equipment, machinery components or other insured property between yards, suppliers and project sites.

Cover may include:

• Loss of or accidental damage to insured property during transit
• Transit by the demolition contractor’s own vehicles or third-party carriers, where included
• Loading and unloading risks, where covered
• Temporary storage incidental to an insured transit, where included
• Single-transit cover or annual transit arrangements
• Domestic or international transit, where declared and accepted

Cover for theft from unattended vehicles, used machinery, high-value equipment, waste, salvage, consequential loss or delay may be restricted or require specific extensions.

Marine Transit Insurance is separate from Commercial Vehicle Insurance and may also differ from transit extensions contained in Contractor Plant and Machinery Insurance or Contract Works Insurance.

Cover is subject to policy terms, conditions, limits, sub-limits, exclusions and insurer acceptance.

Goods on Hook Insurance, also referred to as Hook Liability, may cover certain legal liability for third-party property being lifted, carried or handled by insured lifting equipment. It can be relevant for demolition contractors operating cranes, truck-mounted cranes, hoists or other lifting plant.

This exposure is different from damage to the lifting machine itself. Contractor Plant and Machinery Insurance may cover insured plant, while Goods on Hook Insurance may respond to certain claims involving third-party property in the demolition contractor’s care, custody or control during a lifting operation, where the cover is included.

Cover may include:

• Certain accidental damage to third-party property while being lifted or suspended, where covered
• Declared lifting operations performed by eligible plant and operators
• Specified limits for property in the insured’s care, custody or control
• Loading, unloading or positioning operations, where included
• Lifting structural components, plant or other property during demolition or dismantling work, where declared and accepted

Demolition contractors should accurately declare the lifting equipment, maximum loads, types of property lifted, project locations, operator arrangements and subcontracted lifting activities. Standard Public Liability Insurance may exclude or limit property in the insured’s care, custody or control.

Cover is subject to policy terms, conditions, limits, sub-limits, exclusions and insurer acceptance.

Contract-Specific Endorsements and Extensions are not a standalone insurance policy. They are changes, extensions or evidence requirements that may be requested under a demolition contract, construction contract, tender, prequalification process or principal contractor insurance schedule.

Demolition contracts can require wording that differs from a standard policy. Whether that wording can be provided depends on the existing cover, insurer approval, the contractor’s declared activities and the terms of the contract.

Common demolition contract requirements may include:

• Principal’s Indemnity, where required and accepted by the insurer
• Cross Liability wording
• Waiver of Subrogation, where required and available
• Contractual Liability extensions, where available
• Project-specific or site-specific Certificates of Currency
• Interested party or financier noting, where appropriate and available
• Project-specific policy limits or excess requirements
• Joint venture, builder, developer, principal contractor or other entity wording, where accepted
• Demolition-specific terms relating to vibration, subsidence, weakening or removal of support, asbestos, pollution, excavation, lifting, explosives, hot work or other declared activities

All Trades Cover may be able to review a demolition contract insurance schedule, identify wording that differs from the current policy and approach the insurer about available endorsements or documentation. Insurer approval is required before amended wording or Certificates of Currency can be issued.

An insurance policy or Certificate of Currency should not be assumed to satisfy every demolition licence, building approval, contract, tender, prequalification or site-access requirement. Contractors should check the final requirements against the relevant contract and regulatory requirements and obtain legal or other professional advice where needed.

Cover and endorsements are subject to policy terms, conditions, limits, exclusions and insurer acceptance.