When hiring an asbestos removal company in New Zealand, checking their insurance is just as important as checking their qualifications. A reputable operator will carry several types of cover to protect you, their workers, and the public — and they should be happy to show you proof before work begins.
Why Insurance Matters for Asbestos Work
Asbestos removal is classified as high-risk work in New Zealand. Disturbing asbestos-containing materials (ACMs) can release fibres that cause serious, long-latency diseases including mesothelioma and asbestosis. Because the consequences of something going wrong can be severe and long-lasting, the insurance requirements for this trade are more demanding than for general construction work.
WorkSafe NZ regulates asbestos removal under the Health and Safety at Work (Asbestos) Regulations 2016. Class A licensed removalists (who handle friable asbestos) and Class B licensed removalists (non-friable ACMs over 10 m²) must meet strict competency and operational standards — and carrying adequate insurance is part of operating professionally within those standards.
The Key Types of Insurance to Look For
1. Public Liability Insurance
Public liability is the most fundamental cover. It protects you (the homeowner) and any third parties if the contractor's work causes property damage or personal injury. For asbestos removal, this is critical — if fibres are not properly contained and contaminate a neighbouring property, or if a worker accidentally damages your home, public liability insurance covers the resulting claims.
As a guide, reputable asbestos removal companies typically carry public liability cover of at least $1 million, and many carry $2 million or more given the nature of the work. Always ask to see the current certificate of currency.
2. Employer's Liability Insurance
If the company has employees (rather than just the owner-operator), they should carry employer's liability insurance. While ACC covers most workplace injury claims in New Zealand, employer's liability covers situations where an employee successfully sues their employer for damages beyond what ACC provides — for example, in cases of gross negligence. Given the health risks associated with asbestos exposure, this cover is especially relevant in this trade.
3. Professional Indemnity Insurance
Professional indemnity (PI) insurance covers claims arising from errors, omissions, or negligent advice. For asbestos removal companies that also provide asbestos surveys, management plans, or clearance certificates, PI insurance is important. If a surveyor misidentifies a material and you later discover asbestos was missed, PI cover can protect you from bearing the cost of remediation yourself.
4. Contractor's All-Risk (or Contract Works) Insurance
Some asbestos removal companies also carry contractor's all-risk insurance, which covers accidental damage to the works in progress and surrounding property during the job. This is particularly relevant for larger projects involving significant demolition or structural work alongside the asbestos removal.
5. Pollution Liability Insurance
This is a specialist cover worth asking about. Standard public liability policies often exclude pollution events — and asbestos fibre release could be classified as a pollution event by some insurers. A specialist pollution liability or environmental liability policy fills this gap. Not every company will carry it, but the most professional operators working on larger or more complex projects often do.
What to Ask Before Signing a Contract
Before any asbestos removal work begins at your property, ask the company to provide:
- A certificate of currency for each type of insurance they hold
- Confirmation that their WorkSafe Class A or Class B licence is current (you can verify this with WorkSafe NZ)
- A copy of their asbestos removal control plan for your job
- Details of who will issue the clearance certificate after removal
Don't be shy about asking — any reputable company will provide this information without hesitation.
A Quick Reference: Insurance Types at a Glance
| Insurance Type | What It Covers | Essential? |
|---|---|---|
| Public Liability | Property damage & injury to third parties | Yes |
| Employer's Liability | Employee claims beyond ACC | Yes (if staff employed) |
| Professional Indemnity | Errors in surveys, reports, advice | Yes (if surveying/reporting) |
| Contractor's All-Risk | Damage to works and surrounding property | Recommended |
| Pollution Liability | Asbestos fibre release as a pollution event | Best practice |
Red Flags to Watch Out For
- A company that cannot or will not provide proof of insurance
- Cover that has lapsed or is about to expire
- A policy with a very low limit of indemnity relative to the size of your project
- No WorkSafe asbestos removal licence — this is a legal requirement, not optional
- Unusually low quotes that may indicate corners are being cut on compliance and insurance
When to Call a Professional
Asbestos removal in New Zealand is restricted work regulated under the Health and Safety at Work (Asbestos) Regulations 2016. Homeowners must not attempt to remove friable asbestos themselves, and non-friable removal above 10 m² also requires a licensed removalist. Even for smaller amounts of non-friable material, engaging a professional is strongly recommended given the health risks involved. You can find qualified, insured asbestos removal specialists in your area on tradedirectory.co.nz.
For guidance on your obligations as a homeowner or property manager, MBIE Building Performance and WorkSafe NZ are your primary reference points.
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