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Commercial Defects | Master Builders Insurance Brokers
Complete cover for structural defects on commercial buildings.
Commercial building work
Internal load bearing structures
External load bearing structures
Up to your selected limit starting at $1,000,000 per policy period
Minimum of 2% of the contract value or $10,000 is payable per claim
What is Commercial Defects Insurance?
Commercial Defects Insurance helps to protect you from defects in structural work occurring in a completed commercial building project.
Commercial Defects Insurance is an annual cover with a premium based on the amount of structural work included in your commercial project.
This policy covers the legal liability for claims made against the builder during the period of insurance for acts, errors and omissions of the builder resulting in structural defects after completion.
Commercial Defects Insurance provides indemnity up to the selected limit of liability, starting at $1,000,000. Under the policy you are required to pay the first 2% of the value of the contract or $10,000 whichever is the greater, each and every claim.
The premium paid is based on the structural work conducted by a builder and this is defined as:
- all internal and/or external load bearing structures essential to the stability or strength of the building or any part thereof, including, but not limited to foundations, floors, walls, roofs, columns, and beams; and
- all other works forming part of the external walls and roofing, but excluding weatherproofing works not designed to add strength or support to the building, moveable elements of external windows, doors, and skylights.
Likewise, a structural defect is defined as any defect in the structural works which affects the stability or strength of the building or any part thereof and is attributable to defective design, defective or faulty workmanship and/or defective materials and which:
- results in a regulatory authority closing or prohibiting the use of the building or any part thereof; or
- does or would prevent the continued practical use of the building or any part thereof; or
- results in destruction of the building or physical damage to the building or any part thereof; or
- results in threat of imminent collapse that may reasonably be considered to cause destruction of the building or physical damage to the building or any part thereof.