Does a demolition business need asbestos 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.
