Landscaping risks for builders

While it may be argued that there is less risk when landscaping than when building, there are still hazards that need to be considered. Construction insurance expert Ben Rickard provides some advice

There are many risks that can be managed by having good training and procedures in place, including.

The same applies when it comes to managing relationships with customers. Written contracts are essential to avoid misunderstandings and to provide a basis for the agreed scope of work and managing any disputes. This includes making sure that variations are also agreed in writing. 

These are just a few examples of hazards that need to be managed as part of a broader risk management plan, which may also include having the right insurance cover in place.

Insurance essentials for landscaping

Public/General/Broadform liability
This covers your liability for accidental damage to someone else’s property. For example, concrete splashes staining existing cladding or joinery, or heavy equipment (while being operated for its specialised purpose, not while being driven) damaging existing property.

One common pitfall to be aware of is hitting underground services when digging holes or trenches. This is covered, usually with a higher excess, but only if the appropriate measures were taken to identify the location of any services prior to digging. This may include needing to manually dig rather than using an excavator if working near such services.

Pools are another area that need to be managed very carefully, as insurance may not cover liability issues related to their construction.

If your main occupation is as a builder but you pick up a job landscaping, make sure your policy includes this activity as well – otherwise, you may not be covered.

Damage by vehicles & heavy machinery
Damage to other people’s property caused by your vehicle is covered under the vehicle’s insurance, not public liability. This also applies to any items of equipment or heavy machinery that are mechanically propelled and insured as vehicles. 

It is not uncommon for neighbours to complain of cracks in their houses, paths or driveways because of the operation of heavy machinery at the next door property. It’s a good idea to visit neighbours before this work starts and to get lots of photographic evidence of the condition of the existing property before commencing operation.

Contract works insurance
This covers accidental damage or loss to the building work, including by theft, storm, subsidence or flood. Often not even considered for landscaping work, if this cover hasn’t been arranged and there is damage to the works under construction, a substantial loss may have to be borne by the builder carrying out landscaping. 

If the work involves an existing structure, such as the addition of a deck, fencing, retaining or landscaping around a house, this cover should be arranged by the building owner with their current insurer. It is a good idea for the builder to ensure that this has been done, which will avoid any problems later on, if it hasn’t been and there is an issue. It should be a standard condition of your contract for this cover to be arranged.

If the contract involves standalone work, such as a sleepout or a freestanding deck, pergola or substantial retaining works, the builder may be able to arrange the cover separately.

Design liability
If your role includes landscape design, consider professional indemnity insurance. This covers liability for errors in the design that require the client to be compensated for their loss. For instance, encroaching on neighbouring property boundaries or a lack of sufficient barriers when designing a pool.

In a nutshell

Aside from your regular business insurance (as well as cover for illness and income protection) there are particular risks with landscaping that need to be properly managed, whether with the appropriate insurance or the other risk mitigation measures outlined in this article.

 

The information presented in this article is general in nature and not intended to be financial advice for individual situations.

Builtin are New Zealand’s trade insurance experts. For more information visit www.builtin.co.nz, email Ben Rickard at ben@builtin.co.nz or call him on 0800 BUILTIN.