Demolition Insurance
Everything you need to know about Demolition and Asbestos Removal Insurance
Demolition Insurance
Everything you need to know about Demolition and Asbestos Removal Insurance
What is Demolition Insurance?
Demolition Insurance is a specialised form of business insurance designed to protect demolition contractors, excavation companies, and asbestos removal specialists from the unique risks involved in demolition work. It provides financial protection if an accident, property damage, or injury occurs during the demolition process, whether you’re removing a small structure, dismantling a commercial building, or carrying out a partial internal demolition.
Because demolition work involves heavy machinery, hazardous materials, unpredictable structures, and high-risk environments, standard business insurance usually doesn’t cover these exposures. Demolition Insurance ensures your business is protected against claims and unexpected costs that can arise on site.
Activities we can cover; but not limited to:
Demolition, Strip-Outs, Asbestos Removal, Asbestos Sampling & Testing, Excavation, earthmoving and digging, Underground work, shoring and underpinning, salvage sales
What Does Demolition Insurance Cover?
Most demolition insurance packages include the following core covers:
✔ Public Liability Insurance
Protects you if your work causes property damage or injury to a member of the public. For demolition contractors, this is essential, even a small mistake can cause major damage.
✔ Demolition Works Cover
Covers damage caused by the demolition process itself, including collapse, vibration, falling debris, or accidental damage to neighbouring properties.
✔ Contractors Plant & Equipment Insurance
Covers owned and hired machinery, such as excavators, skid steers, cranes, trucks, and attachments.
✔ Asbestos Liability (if applicable)
Required if you handle, remove, or transport asbestos. Many insurers exclude asbestos, so specialist asbestos liability cover is often needed.
✔ Professional Indemnity
Covers design advice, planning, or engineered methodologies provided as part of the project.
✔ Workers Compensation
Protects employees if they’re injured on the job, a mandatory cover in every Australian state.
✔ Commercial Motor & Fleet Insurance
Covers trucks, utes, tippers, water carts, machinery floats, and other vehicles used in demolition work.
Who Needs Demolition Insurance?
Demolition Insurance is essential for any business or contractor involved in the demolition, dismantling, excavation, or partial removal of structures. Because demolition work carries high risks, including falling debris, structural collapse, underground service strikes, and asbestos exposure, many insurers classify it as high-risk construction. This means standard business insurance often excludes demolition unless specifically declared.
Below is a comprehensive list of the types of businesses and professionals who need Demolition Insurance.
✔ Demolition Contractors
Any business performing complete or partial demolition of residential, commercial, or industrial buildings requires specialised insurance to cover property damage, injury, vibration, and collapse risks.
✔ Excavation & Earthmoving Contractors
Excavators, earthmovers, and civil contractors often perform demolition as part of site preparation. If you remove slabs, footings, driveways, retaining walls, or underground structures, demolition cover is required.
✔ Asbestos Removal Contractors
Many demolition projects involve asbestos. These contractors need:
- Public Liability
- Asbestos Liability
- Pollution/Cleanup cover
Specialist insurers may be required.
✔ Strip-Out & Interior Demolition Specialists
Businesses that remove internal walls, kitchens, bathrooms, ceilings, and soft-strip fittings still face structural and service-strike risks, making cover essential.
✔ Commercial & Industrial Demolition Companies
Large-scale demolition companies carrying out:
- Warehouse and factory demolition
- Multi-storey building demolition
- Controlled collapses
- High-reach excavator demolitions
These projects require extensive insurance, higher limits, and specialised endorsements.
✔ Civil Contractors
Civil construction businesses performing:
- Bridge removal
- Road or tunnel demolition
- Removal of old infrastructure
also require demolition-related cover.
✔ Waste & Scrap Removal Contractors
Businesses removing debris, rubble, metal, or hazardous waste from demolition sites may require cover for:
- Handling materials
- Operating machinery
- On-site liability
✔ Anyone Using Heavy Machinery to Remove Structures
This includes operators of:
- Excavators
- Bulldozers
- Skid steers
- High-reach machines
- Crushers
- Pulverisers
If machinery is used to dismantle or remove structures, demolition cover is required.
Does a demolition business need asbestos insurance?
If your business involves demolition, you have exposure to asbestos. Your exposure could be limited if you contract out 100% of the asbestos removal, however you could still face an exposure that could result in hefty legal fees to your business as a result of asbestos disturbance, or removal.
What is the extent of my liability?
Vicarious liability is a legal concept that could find you responsible for the wrongdoing of your contractors (in this instance; asbestos removal contractor you’ve engaged) regardless if you were involved in the actual wrongdoing. In simple terms, if a client has engaged your services, the claim for damages will be first brought against you, rather than your subcontractor. Legal costs and penalties could be incurred as a result.
In summary, regardless if you contract out 100% of your asbestos work, you still have exposure. This financial exposure can be mitigated by ensuring that your public liability insurance has an asbestos extension.
Insurances a Demolition Contractor should consider
Public liability insurance is vital for a demolition contractor because it protects against third-party claims for injury or property damage that may occur during demolition work. Demolition involves high-risk activities such as structural collapse, flying debris, or accidental damage to nearby buildings and utilities. Without insurance, the contractor would be personally liable for costly legal fees, compensation, or repair costs. This coverage ensures financial protection, compliance with legal and contractual requirements, and peace of mind for both the contractor and clients
Asbestos liability insurance is essential for contractors involved in demolition, renovation, or asbestos removal because it provides protection against claims arising from exposure to asbestos fibres. Handling asbestos carries significant health risks, including serious illnesses such as asbestosis, lung cancer, and mesothelioma. If workers, clients, or the public are exposed, the contractor could face expensive lawsuits and cleanup costs. Standard public liability policies often exclude asbestos-related incidents, so specialised asbestos liability insurance fills this gap. It covers legal defence, compensation, and remediation expenses, ensuring regulatory compliance, financial security, and responsible risk management for high-risk asbestos-related operations.
Plant and equipment insurance protects a contractor’s machinery, tools, and equipment used on job sites from loss, theft, or damage. For demolition contractors, this includes excavators, bulldozers, cranes, and power tools—essential assets that are costly to repair or replace. The policy typically covers owned, hired-in, or leased equipment, both on-site and in transit. Given the harsh conditions and high risks of demolition work, this insurance ensures minimal downtime and financial loss if equipment is damaged or stolen. It helps maintain project timelines, supports business continuity, and safeguards a contractor’s investment in essential operational machinery.
Motor vehicle insurance protects a demolition contractor’s vehicles—such as trucks, utes, trailers, and excavator transporters—against accidents, theft, or damage. These vehicles are essential for transporting workers, materials, and machinery between job sites. The insurance typically covers repair or replacement costs, third-party property damage, and liability for injuries caused to others. Depending on the policy, it can include comprehensive, third-party, fire and theft, or fleet coverage. Given the heavy-duty nature of demolition work and frequent site travel, motor vehicle insurance ensures business continuity, financial protection, and compliance with road laws, minimising disruptions from unexpected vehicle-related incidents.
Legal expenses insurance covers the cost of legal advice, representation, and court proceedings arising from disputes related to business activities. For a demolition contractor, this could include contract disputes, regulatory investigations, or claims from clients or third parties. Legal proceedings can be expensive and time-consuming, even when the contractor is not at fault. This insurance helps cover solicitor fees, court costs, and other legal expenses, ensuring that the contractor can defend or pursue claims without significant financial strain. It provides peace of mind, allowing the business to operate confidently while managing potential legal risks effectively.
ChatGPT said:
Cyber insurance protects a demolition contractor from financial losses resulting from cyber incidents such as data breaches, ransomware attacks, or system outages. Even in construction, contractors store sensitive client data, employee records, and project information that could be targeted by hackers. This insurance covers the costs of data recovery, business interruption, legal expenses, and regulatory fines following a cyberattack. It may also include coverage for reputational damage and crisis management. As digital systems, cloud storage, and online communication become integral to operations, cyber insurance ensures business continuity and safeguards both financial and client trust in the event of a cyber threat.
Management liability insurance protects company directors, officers, and managers from claims arising from decisions or actions taken in the course of managing a business. For a demolition contractor, this coverage is crucial because management can face allegations of mismanagement, breach of duty, negligence, or employment-related issues such as unfair dismissal or discrimination. It covers legal defence costs, settlements, and penalties that could otherwise be personally devastating. The policy may also include coverage for the company itself against regulatory investigations or wrongful acts. Overall, management liability insurance safeguards leadership, company reputation, and financial stability against complex business risks.
How Morgan Insurance Brokers can help you source Demolition and Asbestos Removal Insurance
Morgan Insurance Brokers has a wealth of experience in insuring businesses in the demolition industry. We understand the risks and can provide tailored insurance solutions to allow you to trade with peace of mind.
We have access to a large panel of insurers that you may not have access to directly, as the consumer and can source comprehensive, and competitively priced premiums. Contact us today.
Frequently Asked Questions about Demolition and Asbestos Removal Insurance
To obtain a Public Liability quote for your demolition business, the insurers will require some additional information about your activities for example;
- Are you doing any asbestos work?
- Are you doing any salvage sales?
- How high you’ll be working?
- How deep you’ll be working with an excavator?
- What equipment will you be using to do the works?
Other information such as the below will also be required
- Turnover
- Experience in the industry
- Employee numbers
- Subcontractor and labour hire payments
Morgan Insurance Brokers can discuss these with you and fill out any of the neccessary paperwork on your behalf to obtain Public Liability Insurance.
There is an option to pay your insurance monthly.
Your insurer releases your Certificate of Currency when your premium has been paid or monthly instalments have been accepted, and when your proposal form has been signed and returned.
An application form for demolition and asbestos insurance is required. Morgan Insurance Brokers aims to make the process as easy as possible for you. We complete the proposal form with you over the phone, so you don’t have to print out any paperwork. We then send this to you electronically for your signature. This enables a fast, smooth process for yourself.
Public Liability Insurance can vary greatly depending on the work that you’re doing, your turnover, and how many employees you have. We always approach as many insurers as possible to keep the premium as low as possible for you.
If you contract out the asbestos removal, like most demolition companies do, there is still the risk of the asbestos injury claim to be brought against you. This is because a client has engaged your services as the primary contractor. The original claim will be brought against your company, along with the legal cost associated to defend your position. It is most likely that the asbestos contractor will have insurance that will respond to the injury claim, however, there may be a contribution to the claim that you may have to pay;Â depending on the circumstances.
