Risk & Insurance Tips for Tradies & Builders

Managing Risk in Tough Times

The residential building industry is a vital pillar in Australia’s economy and is often used as a barometer of its health.

It is fair to say that the building industry is in a challenging position, and the ongoing volatility of interest rate hikes only adds to the difficulty. Experts predict that tough times will continue for at least the next 6-12 months.

Managing risk is a crucial part of creating a sustainable business. To help builders and tradies navigate these challenges, the team at BRIC Insurance has compiled some key considerations.

Time for a quick health check

It’s a great time to ensure that you have the right cover in place and competitive rates. This can range from a basic business pack, cover for tools and motor, to contract works or a commercial structural defects policy.

Ensure you have Domestic Building Insurance (DBI)

Recent building insolvencies and situations where builders did not have DBI in place when taking deposits are timely reminders of the statutory requirement for builders to have a DBI policy in place.

“Recent building insolvencies and situations where builders did not have DBI in place when taking deposits are timely reminders of the statutory requirement for builders to have a DBI policy in place.”

Consider your eligibility limit

Eligibility limits can determine the amount of work that a builder can perform. With increasing materials and labor costs, many builders are seeking to increase their eligibility limits. Naturally, insurers are cautious about this following recent insolvency activity. To maximize your chances of securing an increase, you should:

• Plan early – do not enter contracts before knowing you have the relevant limits
• Ensure your financial documents are up to date
• Speak to a qualified Victorian Managed Insurance Authority (VMIA) distributor such as BRIC.

Understand the risks

If you are considering taking over a job from a builder that has become insolvent, ensure a detailed inspection report is completed by a qualified engineer, architect, or building surveyor.

How BRIC can help

Managing risk and insurance is one important element for both businesses in the building industry and consumers undertaking home building or renovation activities.

With over 25 years of experience in the building industry, BRIC’s highly qualified team has strong experience in providing insurance solutions that encompass a range of products expertly designed around the risk exposures builders and tradespeople face.

Contact

Email: [email protected]

Chitra Sharma 03 8862 2333 or

Josh Van Slyke 0482 188 160