Does a demolition business need asbestos insurance? 

17 July 2023
|In Public Liability Insurance

If your business operates in the demolition industry, there is a high likelihood that you are exposed to asbestos risk. Even if you subcontract 100% of asbestos removal to a licensed third party, your business may still face significant legal and financial exposure if asbestos is disturbed during demolition works.

While outsourcing asbestos removal can reduce operational risk, it does not eliminate liability. Claims arising from asbestos disturbance or improper removal can still result in substantial legal costs, penalties, and compensation claims against your business.

What Is Vicarious Liability?

Vicarious liability is a legal principle that can hold your business responsible for the actions or negligence of your contractors, including asbestos removal contractors you engage, even if you were not directly involved in the wrongdoing.

In practical terms, when a client engages your demolition services, any claim for damages related to asbestos exposure is likely to be brought against your business first, rather than the subcontractor. This means your business could incur legal defence costs and financial penalties, regardless of who carried out the asbestos work.

Why the Right Insurance Cover Matters

In summary, even when all asbestos-related work is subcontracted, demolition businesses still carry asbestos exposure risk. This financial exposure can be significantly reduced by ensuring your public liability insurance includes a suitable asbestos extension that aligns with your demolition activities.

Without the correct cover in place, your business could be left uninsured for claims that may threaten its long-term financial stability.

How Morgan Insurance Brokers Can Help

Morgan Insurance Brokers specialises in arranging demolition insurance solutions for Australian demolition businesses. We work with a broad panel of insurers, including specialist underwriters that are only accessible through brokers, to secure affordable and comprehensive cover tailored to your specific risk profile.

If you want to ensure your demolition business is properly protected against asbestos-related liability, speak with an experienced insurance broker today.

Author

  • Lauren Spice

    Diploma of Insurance Broking | Tier 1 & 2 Insurance Adviser | Tier 1 Life Insurance Specialist | QPIB | NIBA Member | Steadfast Network Broker

    Lauren is a Qualified Practising Insurance Broker (QPIB), a member of the National Insurance Brokers Association (NIBA), and part of the Steadfast broker network.

    Lauren has over 15 years of experience in the Australian insurance industry and specialises in income protection, business insurance and risk advisory for Australian businesses and individuals. She holds a Diploma of Insurance Broking and is qualified across Tier 1 and Tier 2 general insurance and Tier 1 life insurance.

    Professional & Licensing Information

    Morgan Insurance Brokers Pty Ltd is a Corporate Authorised rep (ASIC no 001292274) of Brindabella Insurance Brokers Pty Ltd AFSL 000500149.

    Morgan Insurance Advisors Pty Ltd T/A Morgan Life is an Authorised Rep (ASIC no 319449) of HAE Financial Pty Ltd AFSL 501891.

    Lauren Spice Individual AR Number 001310613