If you’re thinking about hiring someone outside of your builder’s contract or bringing in your own trades during construction, it’s important to consider the potential risks especially when it comes to liability and insurances.
While it might seem like a smart way to save money or stay more hands-on, bringing in outside contractors can sometimes lead to unexpected complications. The work they complete won’t be covered under your builder’s insurance which could leave you responsible for any additional costs if issues arise from their work.
When you engage a builder such as Sherbrooke Design and Construction, our insurance policies such as Contract Works, Protection Works, Existing Structure and Public Liability Insurance, provide coverage for all the work included in your building contract and subsequent variations. They also provide coverage for any damage to neighboring properties if we are deemed to be liable.
If you bring in an independent trade (such as a pool builder or landscaper) outside of your contract, they need to have their own insurance to cover any potential damage they cause. Even if your home and contents insurance is active during construction, it likely won’t cover damage caused by an independent contractor.
So, if you hire someone outside of your builder’s contract and they cause damage, you may not have an easy way to claim compensation. This leaves you with the option to try and claim through the contractor’s liability insurer or pursue a legal path for the costs. And if they cause damage to a neighbouring property, your neighbour’s will face a similar scenario.
To avoid unexpected costs and reduce the risk of issues during your build, you should consider:
- Including all work under your builder’s contract. This means everything is covered by their insurance, giving you peace of mind; or;
- Asking for proof of liability insurance before any work begins by a trade you have hired separately. Make sure it is very clear who is responsible if something goes wrong.
Ultimately, keeping all works under your builder’s contract is the safest option. A builder will have the correct insurances in place, reducing liability issues from hiring external trades. This also ensures a smoother and stress-free build!
