Builder Insurance Checklist

10 Things Every Australian Builder Should Review Before Renewal

By Arthur Hatzi — Legion Insurance Brokers Australia

Insurance renewal is often treated as an administrative task:

“The policy is expiring, send me the invoice and I’ll pay it.”

For builders and construction businesses, this approach can create problems.

Your business today may be very different from the business you insured 12 months ago.

You may have:

• Increased turnover

• Larger projects

• More subcontractors

• More employees

• New equipment

• Different types of work

• Bigger contractual requirements

  
  

Your insurance should reflect the business you operate today — not the business you had last year.

With more than 20 years’ experience in insurance, I regularly help builders and trades businesses review their policies, identify gaps and find better outcomes.

Here is a practical builder insurance checklist to complete before your next renewal.

1. Confirm Your Business Activities Are Correct

One of the biggest insurance mistakes is assuming:

“The insurer knows what I do.”

They only know what has been declared.

Has your business changed?

Examples:

Last year:

• Residential renovations

This year:

• Commercial fit-outs

• Larger extensions

• New construction

• Higher-value projects

Your insurance should accurately reflect your current activities.

Why does this matter?

Insurance policies are based on the risk information provided.

If your actual activities differ significantly from what was declared, it can create problems during a claim.

2. Review Your Public Liability Limit

Public Liability is often a fundamental requirement for builders.

Many contracts require:

• $5 million

• $10 million

• $20 million

However, the right limit depends on:

• Your projects

• Your clients

• Your contracts

• Your exposure

Do not simply renew the same limit forever without reviewing whether it still suits your business.

3. Check Your Turnover Is Accurate

Your turnover is an important rating factor for many insurance policies.

Ask:

• Has turnover increased?

• Have you taken on bigger projects?

• Are you expecting growth?

Under-declaring turnover may reduce premiums initially, but it can create issues if your business profile does not match what was insured.

4. Review Contract Works Insurance

For builders, Contract Works Insurance is one of the most important areas to review.

Consider:

Project Values

Are your project values accurate?

A $2 million project should not be insured as a $1 million project.

Existing Structures

This is especially important for:

• Renovations

• Extensions

• Additions

Ask:

“Does my policy protect only the new works, or does it also consider the existing structure?”

Materials and Equipment

Review whether the policy appropriately covers:

• Materials onsite

• Temporary works

• Tools

• Equipment

• Theft exposure

  
  

5. Review Your Subcontractor Management

Builders often rely on subcontractors.

A strong risk management process includes collecting:

✅ Public Liability certificates✅ Workers Compensation details where applicable✅ Licences and qualifications before contractors commence work.

Why?

A subcontractor’s problem can quickly become your problem.

Good documentation helps protect your business.

6. Check Your Tools and Equipment Insurance

Tools are often one of a builder’s biggest assets.

Ask:

• What are my tools worth today?

• Has the replacement cost increased?

• Are expensive items specifically listed?

• Are tools covered in vehicles?

• Are theft conditions understood?

  
  

Common mistake

A builder has:

$30,000 of tools

but their policy only provides:

$10,000 cover.

The premium may be cheaper, but the protection may not match the actual exposure.

7. Review Professional Indemnity Requirements

Many builders overlook Professional Indemnity.

It can become relevant where you provide:

• Advice

• Design input

• Specifications

• Recommendations

• Consulting services

Some contracts may require Professional Indemnity cover before work can commence.

8. Check Business Interruption Protection

Many businesses insure their physical assets but forget about income.

Ask:

“If my business stopped tomorrow, how long could I survive?”

Business interruption can help protect your financial position following certain insured events.

Consider:

• Gross profit calculations

• Indemnity period

• Increased costs of working

• Additional expenses

• 
  

9. Review Your Cyber Risk

Builders may not consider themselves technology businesses.

However, modern construction businesses rely heavily on:

• Emails

• Online banking

• Accounting software

• Project management systems

• Customer information

Common cyber risks include:

• Email compromise

• Invoice fraud

• Ransomware

• Data breaches

Cyber insurance is becoming increasingly relevant for small and medium businesses.

10. Review Your Insurance Broker Relationship

Insurance is not just about receiving a renewal invoice.

A good broker should help you understand:

• What is covered

• What is excluded

• Whether your premiums are competitive

• Whether your insurance still matches your business

Ask yourself:

“If I had a major claim tomorrow, do I know who I would call?”

Bonus Checklist: Questions Every Builder Should Ask Before Renewal

Before renewing, ask:

Business

☐ Are my business activities accurate?☐ Is my turnover correct?☐ Have my projects changed?

Liability

☐ Is my Public Liability limit suitable?☐ Are my subcontractors properly insured?

Construction

☐ Is my Contract Works cover appropriate?☐ Are existing structures protected?☐ Are project values accurate?

Assets

☐ Are tools and equipment adequately insured?☐ Are replacement costs realistic?

Income

☐ Would my business survive a major interruption?

Cyber

☐ Are my systems and customer data protected?

Why Builders Work With Legion Insurance Brokers Australia

At Legion Insurance Brokers Australia, we specialise in helping:

• Builders

• Trades

• Contractors

• Small businesses

Our approach is simple:

Understand your business

Every builder operates differently.

A small renovation builder has different risks from a commercial construction company.

Review your existing insurance

We look at:

• Coverage

• Limits

• Exclusions

• Premiums

  
  

Find better outcomes

Sometimes this means:

• Changing insurers

• Improving protection

• Negotiating with your existing insurer

• Reducing unnecessary costs

  
  

Final Thoughts

The best time to find an insurance gap is before a claim happens.

A renewal is not just a payment reminder.

It is an opportunity to ask:

“Does my insurance still protect the business I have today?”

A professional review can help ensure your insurance continues to support your business as it grows.

Arthur Hatzi

Legion Insurance Brokers Australia

Helping builders and trades do better on insurance.

From quote, to cover, to claim.

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Disclaimer: General information only. Seek professional advice for your specific circumstances and insurance program, cover and arrangements.