CBA INSURANCES ARE SPECIALISTS IN INSURANCE FOR BUILDERS AND TRADESPEOPLE.

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1 CBA INSURANCES ARE SPECIALISTS IN INSURANCE FOR BUILDERS AND TRADESPEOPLE. WE PROVIDE TAILORED, COST EFFECTIVE COVER FOR ALL MEMBERS OF THE CERTIFIED BUILDERS ASSOCIATION. Specialists in the building industry

2 WHY USE AN INSURANCE BROKER? An insurance broker is an independent specialist professional adviser who acts for you, not the insurance company. Our task is to help you identify the risks that you and your business may be exposed to. We provide friendly, helpful advice about what risks you should be insured against. If you agree, we will canvas the entire insurance market to obtain the best possible insurance protection to meet your individual needs and at the most competitive price. Then we ll arrange the insurance policy and documentation on your behalf. If you need to make a claim, we help you through the process. We can even help or offer advice if you re making claims with other insurance companies. Whether it s personal or business, having the correct insurance is vital. The wrong or inadequate protection can lead to disaster for individuals, families and / or businesses. The right advice makes all the difference and prevents costly mistakes.

3 BUSINESS INSURANCE EXPLAINED Here we explain some of the most common policies that builders should consider. PUBLIC LIABILITY Provides protection from damage to third party property or bodily injury. Public Liability (PL) insurance is essential for builders and sub-contractors, preferably cover that is specially tailored to meet their needs, such as that provided by Builtin New Zealand. One of your sub-contractors accidentally screws through a pipe, which results in water damage for which you are held liable as the main contractor. I was doing an alteration and had taken off the roof. I covered it with tarps overnight, but strong winds hit, along with driving rain. Worse still, it was deemed my fault for not securing the tarps well enough! The homeowner s insurance company had me up for the $40,000 damage to carpets and other household contents. FAULTY WORKMANSHIP COVER (DELETES THE EXCLUSION FROM PL) Provides cover for damage caused by faulty workmanship. This is usually excluded from most public liability policies, although resultant damage is covered. PROFESSIONAL ADVICE OR SERVICE COVER (DELETES THE EXCLUSION FROM PL) Provides cover for damage arising from professional advice or services provided by the builder. Again, this can be an exclusion from some public liability policies, but can be a source of claims by builders and tradespeople who are giving advice to homeowners. DEFAMATION COVER Protects against infringement of trademarks, copyright and registered designs, along with unintentional defamation. A builder was talking to his mates in the trade about the poor workmanship of another person, who then took him to court for lost earnings because of the work they missed out on when no one would use him. A builder was taken to court for breach of copyright when they accidentally used someone else s design to build a house. ERRORS AND OMISSIONS (E&O) INDEMNITY / PROFESSIONAL INDEMNITY Provides cover for legal costs and damages if you, your company or employees are taken to court for allegedly causing someone a financial loss, as a result of something done or said (or not done or said) in the course of your work. If you are worried about your 10 year liability under the Building Act, or getting caught up in a leaky homes case, you should consider E&O. A builder accidentally uses the wrong gauge of steel in a foundation. This is not picked up until it fails the inspection and has to be demolished and re-laid. A builder is forced to defend himself from claims that he was involved in the construction of a home that became a leaky building, resulting in a large financial loss for the homeowner, who is demanding compensation. CONTRACT WORKS INSURANCE (PREVIOUSLY KNOWN AS CONTRACTORS OR BUILDERS ALL RISK) Covers loss of or damage to property that s being built or altered. Examples of claims include theft of materials from site, fire and flood damage. Note, the policy may not cover theft of or damage to tools and equipment, such as scaffolding, from site. $15,000 worth of custom made windows were delivered to site at 4pm, to be fitted the following morning. When I arrived on site they were all missing. COMMERCIAL MOTOR VEHICLE Protects your business vehicles anywhere in New Zealand. Comprehensive, Third Party Only or Third Party, Fire and Theft options are available.

4 TOOLS, PLANT AND EQUIPMENT Covers loss of or damage to your tools and equipment anywhere in New Zealand. Includes tools and equipment borrowed or hired by you. Doesn t cover office equipment, phones or computers. EMPLOYERS LIABILITY If you employ staff this insurance will provide cover for your liability for personal injury (not already covered by ACC) to any of your employees. Cover includes legal defence costs. An apprentice working in a dusty environment develops a lung infection and is unable to work. The employer was found liable for not providing adequate ventilation and masks. EMPLOYMENT DISPUTES LIABILITY Provides protection to employers for personal grievance actions taken by employees and prospective employees as a result of unjustified dismissal, discrimination or other disadvantage. SUB-CONTRACTORS PAYMENT GUARANTEE Pays 75% of the money owed to you if your main contractor goes bust and can t pay your outstanding invoices. STATUTORY LIABILITY This provides cover for legal costs and fines for some breaches of Statute, such as the Resource Management Act, Building Act, Fair Trading Act, and the Consumer Guarantees Act. Occupational Health and Safety legislation means you can t insure against OSH fines. Your policy should include cover for fines and penalties levied by the Building Practitioners Board. A builder was fined by the local environment agency when left over paint accidentally spilled into a public drain. A builder was fined under the Fair Trading Act for misrepresentation when a client complained that his final bill was more than three times his original quote. LBP INSURANCE A number of insurers have introduced separate cover to pay the costs of defending your license, and any fines, if someone makes a complaint to the Building Practitioners Board. Depending on the insurance company, this cover may only be available if you sign up to their PL and/or Statutory Liability insurance. You should check whether license defence cover is already included in your existing PL and/or Statutory liability policy, as it is with Builtin s. LBP Insurance may also include cover for costs resulting from errors in the Records of Work documentation that LBPs are now required to submit. DIRECTORS AND OFFICERS LIABILITY Provides protection for directors and officers for wrongful acts committed within their capacity as a director or an officer. Cover includes defence costs. MATERIAL DAMAGE Protect your buildings, as well as stock, plant and machinery located on a specified site such as a yard. OFFICE EQUIPMENT AND DATA Covers the cost of replacing office equipment and lost data. CARGO (GOODS IN TRANSIT) Protect materials and stock whilst they are being delivered. A Christchurch builder ordered and paid for a kitset and some other custom made components from a company in Auckland. The truck delivering them crashed en route, with the builder left more than $50,000 out of pocket. BUSINESS INTERRUPTION Covers fixed expenses and replaces lost profits as a result of an event that interrupts the operations of the business, such as a fire, flood or earthquake. Other policies are available. Contact the team at CBA Insurances for more information.

5 BUSINESS INSURANCE CHECKLIST Use this checklist to work out where your gaps in cover are. Complete the current cover column, then contact the team at CBA Insurances to work out your recommended cover. Public Liability - Faulty Workmanship Cover - Professional Advice or Service Cover - Defamation Cover Errors and Omissions Indemnity / Professional Indemnity Contract Works Insurance Commercial Motor Vehicle Tools, Plant and Equipment Employers Liability Employment Disputes Liability Sub-Contractors / Labour Only Payment Guarantee Statutory Liability LBP Insurance Directors and Officers Liability Material Damage Cargo (Goods in Transit) Business Interruption Office Equipment and Data CURRENT COVER RECOMMENDED COVER PERSONAL AND FAMILY INSURANCE CHECKLIST CURRENT COVER RECOMMENDED COVER House and Contents Motor Vehicle Boat Health / Medical Key Person Income Protection Life and Disability Superannuation Travel Other policies are available. Contact the team at CBA Insurances for more information.

6 WHATEVER LICENSE YOU HOLD AND WHETHER YOU RE A PLATINUM, GOLD OR GREEN CARD HOLDER, WE HAVE THE INSURANCE YOU NEED AT THE BEST POSSIBLE PRICE. The principals of CBA Insurances Limited have extensive experience in the insurance business and have worked exclusively in the construction industry for more than 10 years. All our clients are builders and tradespeople, so we know the risks you face and the cover you need. OUR OBJECTIVE: To provide all licensed building practitioners and members of the Certified Builders Association with the best cover at the best possible price. Wide wordings Excellent claims service Extensive experience and knowledge of the industry Speedy response times CONTACT US Phone us on 0800 CERTIFIED ( ) or insurance@cbains.co.nz and ask for a quote request form today. We are always here to help. Make sure you offer all your clients an independent builders guarantee. We understand the building industry CBAINS v01-08/12