Essential Covers for Licensed Builders

Essential Covers for Licensed Builders

Like larger businesses, licensed builders and contractors need various insurance covers to protect them and their work. Each state has minimum regulations set out for its licensed builders, which require them to hold certain policies in order to work in that state. Even beyond the minimums, it’s important for licensed builders to have the right kind of coverage to protect them in case any problematic incidents take place.


Construction can be dangerous work with inherent risks involved. A licensed builder should be sure to have liability coverage to protect them in case someone is injured at the worksite or if damage occurs to others’ property.

Contract Works

This insurance is a necessity for licensed builders. Essentially, contract works covers construction projects in progress, protecting against any possible loss such as through theft, or damage through storm or fire, among others. It’s important to select a policy that covers all aspects of a project, including materials and tools. Policies vary widely in their coverage, so a qualified insurance broker can help you choose the right one for you.


One statutory cover required for licensed builders is Builders Warranty Insurance, known also as home warranty insurance. This type of policy covers the owner of the home in the event that the builder fails to finish the contracted project for reasons such as death, bankruptcy, or the builder’s disappearance. The requirements for builders warranty insurance differs among states and territories. In NSW, for instance, this insurance is required only when a building project cost exceeds $20,000.


Policies covering tools and equipment can be a great asset to the licensed builder. You can’t complete your work without your tools. This cover protects your equipment and tools in case of theft or damage, allowing you to continue your work unhindered.


Licensed builders also need special coverage for their vehicles; transporting themselves to and from worksites often alongside equipment. Policies for businesses or tradies can differ from basic motor vehicle insurance policies, so an insurance broker can assist you in understanding the details of coverage.

Workers Comp

If you hire any workers in your contracting projects, you must, by law, possess a workers compensation policy. This will protect your business in case one of your employees is injured on the job or suffers an illness as a result of workplace conditions.

Navigating the waters of insurance for licensed builders can be tricky. Why make the process more complicated? Macey Insurance Brokers can light the way for you. By working with an experienced insurance broker like Macey’s, you can better understand the coverage you need and determine the right policies for your specific requirements. We have expertise in the area of covers for licensed builders, and we’ll ensure you are well-covered. This will give you great peace of mind as you head out to work every day. Contact us now to set up an appointment.

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