Licensed Building Practitioner Insurance
You finally found most useful information about Licensed building practitioner Insurance. This article is designed to explain all aspects about insurance from your “THE Builder” point of view. The article addresses what you “must have” in your insurance package. It explains why you must have it. It also talks about“nice to have” additional options.
As a Licensed Building Practitioner you know that there are not many professionals who actually can advise you about“insurance”. This article is designed to help you to fill that gap. By the end of this article your knowledge about Licensed building practitioner insurance will be even better to compare to an average insurance broker.
I hope you would agree with all available technology we all do not have enough “time in a day”. Builders have to work hard to keep up on the “site” and on applicable technology knowledge.
Licensed building practitioner Insurance in New Zealand
New Zealand builders have increased their efficiency by tenfold only due to modern tools.
Tools & knowledge provide builders with abilities to achieve more (build more & charge more). Think about it as super powers. Later on in the article we will talk about tools insurance solutions. As well as other valuable solutions you need to know to protect your business. That’s right “to protect”.
Are you wondering what am I talking about? – mark this day you are reading it – in a few years a Licensed building practitioner Insurance set will even include a cyber-crime insurance. Cyber-crime insurance is not included in Licensed building practitioner Insurance.
There is only way to grow and it is up (!) and as your business successfully grows. With that grows your business risks and potential liabilities. An example here is a company with $200,000 turnover will always pay less in insurance premiums to compare to a company with $500,000 turnover.
Keep it mind for your future references.
You know that due to change in New Zealand law and introduction of Licensed Building Practitioner designation your responsibility as a builder have increased hugely.
Best way to cover your risk exposures is to have a set of insurance policies specifically designed for a Licensed building practitioner.
Now, let’s explore what must be included in a Licensed building practitioner insurance set:
- Public Liability Insurance policy.
- Employer Liability Insurance policy.
- Statutory Liability Insurance policy.
- Defence Costs.
- Errors & Omissions.
Next point of our discussion is to look at what each policy covers. Next after is why should you as a Licensed building practitioner have it.
Public Liability Insurance policy
Covers your business against third party claims and this type of insurance is the main part of the Licensed building practitioner insurance set.
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Light commercial / rural
Industrial / heavy commercial
Employer Liability Insurance
Provides your company with cover against your employees claims. As you would agree this area is always hard to define. This is why this type of cover is the second most important for you as the business owner. Licensed building practitioner insurance set has this type of insurance policy to protect you from unknown. In fact, the cost of this type of cover can be compared to a couple dozens of beer…
Statutory Liability Insurance
It’s the third of the Licensed building practitioner insurance set. You need it to protect your business (yourself) in the situation where you can be found or be liable for a breach of one of the Acts of New Zealand law. (Important).
Lawsafe and Defence costs insurance are designed to protect your business in court. Often it is to make sure that the matter will settle even before court. Think of these features of the Licensed building practitioner insurance set as your super powers with all the lawyers being paid by your insurance company.
Errors & Omissions insurance is something often overlooked. It is as important as your Public liability insurance. This is designed to back you in the situation where you can be seen liable for errors or emissions on the site.
Now, “Nice to have insurance”:
As a builder, you would want to include in your insurance portfolio a cover for tools. Why would you have a tool cover? Only to protect your assets.
Tools cover provides replacement cover regardless of age of tools. This cover will only cost 4% of the sum insured. Example here is you insure $10,000 and pay for it $400 annually. Imagine your tools are even covered for theft. Many competing policies from other insurance companies only cover tools if they were stolen from a vehicle.
There is one more insurance to discuss for your builder’s business.
Business Interruption Cover:
It provides cover for increased cost of working. Outstanding accounts receivable. Costs towards reinstatement of records, as you know accountants charge for every minute.
Business Interruption Cover can be taken for $20,000 sum insured. The best part of this cover it is really cheap – it is only $100 per year.
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