Hiring a demolition contractor is a significant decision, and one of the most important things you can do before work starts is confirm they carry adequate insurance. Without the right cover, you could be left financially responsible if something goes wrong on your property — from a neighbour's fence being damaged to a worker being injured on site.
Why Insurance Matters in Demolition Work
Demolition is one of the higher-risk trades. It involves heavy machinery, falling structures, dust, noise, and the potential for unexpected hazards like asbestos or unstable foundations. A reputable contractor will carry insurance as a matter of course, but it's always your right — and your responsibility — to ask for proof before work begins.
WorkSafe NZ sets out clear health and safety obligations for contractors working on site, and insurance is a key part of managing those risks responsibly.
Key Types of Insurance to Ask About
1. Public Liability Insurance
Public liability insurance is the most important policy to check for. It covers damage to third-party property or injury to members of the public caused by the contractor's work. For demolition, this includes things like:
- Debris damaging a neighbouring property or vehicle
- A wall or structure falling unexpectedly
- Dust or vibration causing damage to adjacent buildings
As a guide, most reputable demolition contractors in NZ carry a minimum of $1 million in public liability cover, though $2 million or more is common for larger jobs. Always ask to see the certificate of currency — a document from the insurer confirming the policy is active.
2. Employers' Liability / ACC Levy Cover
In New Zealand, the Accident Compensation Corporation (ACC) provides cover for workplace injuries, but this doesn't cover everything. Employers' liability insurance fills the gaps — for example, if a worker suffers a gradual process injury or if there are legal costs involved in a claim.
Confirm that the contractor is registered with ACC and paying their levies. Subcontractors working on your site should also be covered — ask the main contractor how they manage this.
3. Contract Works Insurance (Material Damage)
Contract works insurance (sometimes called construction all-risk insurance) covers physical damage to the work being carried out — for instance, if a partially demolished structure is damaged by a storm before the job is complete. While this is more common in construction than demolition, some contractors carry it, and it's worth asking about on larger projects.
4. Professional Indemnity Insurance
If your demolition contractor is also providing advice, planning, or project management services, professional indemnity insurance covers claims arising from errors or omissions in that advice. This is less common for straightforward demolition work but relevant if the contractor is taking on a broader role.
5. Motor Vehicle Insurance
Demolition contractors use trucks, excavators, and other heavy vehicles. Make sure their vehicles and plant are insured, particularly if they'll be operating on or near your property. Damage caused by an uninsured vehicle on your land can become a complicated dispute.
What to Ask Before Signing a Contract
Before any work starts, ask your contractor for the following:
- A certificate of currency for each relevant policy
- The policy limits (the maximum amount the insurer will pay)
- The expiry dates — policies must be valid for the duration of the work
- Whether subcontractors are covered under the same policies or hold their own
Don't be shy about asking — any professional contractor will expect these questions and be happy to provide documentation.
Asbestos and Specialist Risks
If your property was built before the mid-1980s, there's a real chance it contains asbestos-containing materials (ACMs). Demolition involving asbestos is regulated under the Health and Safety at Work (Asbestos) Regulations 2016, and certain classes of asbestos removal work must be carried out by a licensed asbestos removalist. Check with WorkSafe NZ for licensing requirements.
Make sure your contractor's insurance explicitly covers asbestos-related work if this applies to your project. Some general liability policies exclude asbestos — always check the fine print or ask the contractor to confirm in writing.
Building Consents and Your Obligations
Demolition work in NZ often requires a building consent, depending on the size and type of structure. Some minor work may be exempt under Schedule 1 of the Building Act 2004, but you should always confirm this with your local council before proceeding. MBIE Building Performance has useful guidance on when consents are required.
As the property owner, you share some responsibility for ensuring work is carried out legally and safely. Hiring an uninsured contractor doesn't just put you at financial risk — it may also affect your own home insurance policy.
When to Call a Professional
Demolition is not a DIY trade. Even small-scale demolition can uncover hidden hazards — asbestos, lead paint, unstable structures, or live services like gas and electrical lines. Always engage a qualified demolition contractor, and verify their insurance before signing anything.
You can find licensed, reputable demolition contractors in your area through tradedirectory.co.nz.
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