# Forum More Stuff Owner Builders Forum  How much public liability?

## paddyjoy

Hi, 
Just wondering how much public liability insurance people have taken out for their owner builder projects? Most companies offer $5m, $10m or $20m. 
I'm doing an extension and will only have one or two people working on site at any one time so I'm inclined to get $5m but would appreciate any thoughts?

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## cyclic

> Hi, 
> Just wondering how much public liability insurance people have taken out for their owner builder projects? Most companies offer $5m, $10m or $20m. 
> I'm doing an extension and will only have one or two people working on site at any one time so I'm inclined to get $5m but would appreciate any thoughts?

  Usually 10 to 20 million 
You need to check into it further and find out exactly what your Public Liability covers because they can vary substantially. 
Also, You need to see and make note of, all Contractors Sickness Accident or Workers Comp Insurance and assure yourself it is up to date before they start on the job,  
otherwise you need to cover them for injuries while on your job, and Public Liability is usually not for that.

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## Oldsaltoz

20 million costs me about $1,100.00 per year.

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## ringtail

I only have 5 on the advice from my broker. I also checked with a few other "tradie only" type providers and they also advised that 5 was ample ( for my business anyway)

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## paddyjoy

Thanks guys a broker might be a good way to go, can't see why I would need more than $5 million either but then if it's only a few hundred extra to get $20 million then maybe it is worth peace of mind.

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## ringtail

My 5 mill costs me $541, 10 mill was 900. Also bear in mind that all contractors should have *their own liability insurance as well as accident.* Sickness is a option and not a must have.

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## shauck

> My 5 mill costs me $541, 10 mill was 900. Also bear in mind that all contractors should have *their own liability insurance as well as accident.* Sickness is a option and not a must have.

  Can you be covered/buy a policy if you aren't fully qualified tradie?

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## ringtail

> Can you be covered/buy a policy if you aren't fully qualified tradie?

  I think you can Su. Best talk to a broker about it. There are quite a few "handymen" up here spouting the "fully insured" line. Obviously they would not be covered for doing work that must be done by a licenced tradie. Unlicenced people can only do work upto $3300 incl GST up here ( supposedly) . Basically I think the insurance companies will take anyone's money  :Biggrin:

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## paddyjoy

> My 5 mill costs me $541, 10 mill was 900. Also bear in mind that all contractors should have *their own liability insurance as well as accident.* Sickness is a option and not a must have.

  $541 is a pretty good price, can you recommend your broker ;-)

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## ringtail

> $541 is a pretty good price, can you recommend your broker ;-)

  
Obviously they are Brisbane based - Advanced insurance Brokers 07 3352 5699. The policy is through QBE. Tradesure could have done it for a shade more. They are also QLD based but do operate nationally

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## Jemma

> Hi, 
> Just wondering how much public liability insurance people have taken out for their owner builder projects? Most companies offer $5m, $10m or $20m. 
> I'm doing an extension and will only have one or two people working on site at any one time so I'm inclined to get $5m but would appreciate any thoughts?

  I am about to owner build an extension of a laundry & add a bedroom.
From what I understand from council & brokers so far, EACH trade should have all their own insurances to cover them up to any work they do up to $12,000.
Anything over that you will need your own public liability. 
I rang my house insurer & checked with them as, as part of my standard policy, I have $20,000,000 liability cover for people injured on my property & also coverage for myself if I'm injured outside of my property.
I rang around & actually found a way better deal with Youi for my house insurance which covered me better than with SGIC. 
Youi assured me I am covered for any tradies injured on my property IF they decide to sue me.
They also cover me for up to $50,000 of construction works on my existing house also & if I think it will go over cost wise more than that, I need to ring & tell them for them to let their under writers know and raise that limit to still keep me covered. 
Ask you insurers as you may find you're covered already. :Redface:

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## Micky013

Hey 
Im currently doing an OB extension and none of the mainstream insurance coys would cover us and our property as ob's.  
Took out a policy with one of two OB insurance coy's in Aust. Cost us about $1100 for house ins, pub liab up to 20m and also covered 5 or 10k in larger tools (not hand tools).  
Insurance was a requirement of the bank and finance and they especially wanted to see pub liab.

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## Jemma

> Hey 
> Im currently doing an OB extension and none of the mainstream insurance coys would cover us and our property as ob's.  
> Took out a policy with one of two OB insurance coy's in Aust. Cost us about $1100 for house ins, pub liab up to 20m and also covered 5 or 10k in larger tools (not hand tools).  
> Insurance was a requirement of the bank and finance and they especially wanted to see pub liab.

  Ring your house insurer & explain you want to know if you're covered for public liability under your house insurance policy.
We're covered under ours even if we've invited the tradies onto our property & NONE of our trades will individually go over $12,000.

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## Micky013

We had pub liab under the insurance company we had before we started our extension. The catch was as soon as we altered the physical structure of the building from what it was when we first insured it, the insurance was void and the coy wouldn't re insure us due to the whole ob thing.  
Obviously this wouldn't apply to just a makeover type scenario and your current pub liab ( if you have it ) would stand.

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## paddyjoy

Thanks yes I discovered like you that my home insurance included $20m of public liability for everyone except myself, saved me purchasing "owner builder" insurance  :Biggrin:

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## Jemma

> Thanks yes I discovered like you that my home insurance included $20m of public liability for everyone except myself, saved me purchasing "owner builder" insurance

  EXCELLENT! 
SGIC wouldn't cover us once the 2 walls were removed if water damaged our property accidentally (if a tarp leaked or came undone slightly) where as Youi said we would be covered as would our entire building.
As long as we had proof tarps were put up, they'd cover us, including our $20,000,000 liability for tradies or ANYONE on our property.
We signed over to them as they were WAY cheaper than SGIC whom we supposedly received a 12.5% discount from, being as we were customers of 11years - PFFFFT!

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## Tools

> From what I understand from council & brokers so far, EACH trade should have all their own insurances to cover them up to any work they do up to $12,000.
> Anything over that you will need your own public liability.

  I am not from SA so don't know your rules, but are you sure you aren't confusing this with warranty insurance? 
Tools

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## Jemma

> I am not from SA so don't know your rules, but are you sure you aren't confusing this with warranty insurance? 
> Tools

   Warranty insurance? Never heard of it. I presume that's for if you've built a new house?\
We're just extending an existing, 30yo house  :Smilie:

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## paddyjoy

> Warranty insurance? Never heard of it. I presume that's for if you've built a new house?\
> We're just extending an existing, 30yo house

  If you do any owner builder work on your house and then sell it within 7 years you need to pay for an insurance policy to warrant the work until the end of the 7 year period!

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## Jemma

> If you do any owner builder work on your house and then sell it within 7 years you need to pay for an insurance policy to warrant the work until the end of the 7 year period!

  In that case we're safe as it's our first house. Been here 11years & do NOT plan on leaving anytime soon  :Smilie: 
I'm very excited to be getting it started  :Smilie: 
The foundation costs are a KILLER though  :Frown:

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## paddyjoy

> In that case we're safe as it's our first house. Been here 11years & do NOT plan on leaving anytime soon 
> I'm very excited to be getting it started 
> The foundation costs are a KILLER though

  That's good, as long as you stay there nothing to worry about! 
Make sure you start a go-to-whoa thread of the progress.

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## Jemma

> That's good, as long as you stay there nothing to worry about! 
> Make sure you start a go-to-whoa thread of the progress.

  Good thinking Batman!  :Sneaktongue:

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## METRIX

> Can you be covered/buy a policy if you aren't fully qualified tradie?

  Sure can, call up Tradsure, explain your situation and they can cover you, I have a few mates who go under Handyman or similar as they are not Licensed.

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