When working in the building industry, insurance is a must but one area that often causes confusion is asbestos insurance. If you’re a builder who works on older homes or renovations, understanding your exposure and coverage is essential.

Why Builders Should Care About Asbestos

Asbestos was widely used in Australian construction materials up until the late 1980s. That means any renovation, demolition, or maintenance work on older buildings can pose a risk of disturbing asbestos, even accidentally.

If you unknowingly release asbestos fibres while cutting, drilling, or demolishing, it could expose you, your workers, and the public to serious health hazards. The financial consequences of such incidents can be devastating.

Is Asbestos Covered Under Public Liability Insurance?

Standard public liability insurance excludes asbestos-related claims.

That means if asbestos is disturbed even unintentionally your insurer is unlikely to cover cleanup costs, injury claims, or legal expenses. Builders often assume they’re protected, but most policies specifically exclude anything related to asbestos.

Do Builders Need Asbestos Insurance?

Yes, especially if your work involves older homes or buildings where asbestos may be present.
Specialist asbestos liability insurance (or a policy with asbestos cover extensions) can protect you from claims arising from accidental disturbance or exposure. This type of coverage fills the gap that standard liability policies leave open.

However, it’s worth noting that very few builders actually take out dedicated asbestos insurance. Many rely on careful risk management and assume they won’t encounter asbestos but that assumption can be risky.

How to Protect Your Business

If you regularly work on pre-1990s buildings, you should:

• Engage a competent third-party asbestos professional to assess whether asbestos containing material is present before any work begins.
• Ensure that, if Asbestos is found, it is safely managed or removed by appropriately licensed persons and that your site has an up-to-date asbestos register and management plan in place.
• Speak to your insurance broker about adding asbestos coverage to your policy or getting standalone asbestos insurance.

Even if you don’t directly remove asbestos, the risk of accidental disturbance makes coverage worthwhile.

Morgan Insurance Brokers Can Help

At Morgan Insurance Brokers, we understand the unique risks builders face especially when working on older homes or renovation projects. Our experienced team can help you:

• Review your current policy to identify asbestos exclusions
• Compare asbestos cover options across leading insurers
• Ensure you have the right level of protection for your specific type of work

With our guidance, you can have confidence that your insurance truly covers what matters most.

Final Thoughts

While asbestos insurance isn’t mandatory for builders, it’s a smart safeguard if you regularly deal with older properties. Given that public liability policies exclude asbestos, having specialist coverage could protect your business from significant financial loss.

If you’re unsure about your current cover, Morgan Insurance Brokers can help you make sure it’s the best fit for your business.