Demolition Insurance Requirements Sydney NSW

What demolition insurance actually matters in NSW — Public Liability, Workers Comp, equipment cover and what builders and certifiers expect on a Sydney job.

Insurance is the cheapest way for a builder to lose a job and the easiest way for a homeowner to end up exposed. Here's what insurance a Sydney demolition contractor needs to carry, and what to ask before signing.

Public Liability Insurance

The big one. Sydney market norm for residential demolition is $20 million Public Liability. Tier 1 builders and most councils require $20M as a minimum. Direct Demolition carries $20M Public Liability cover.

Workers Compensation

Mandatory in NSW for all employees. Subcontractor labour-only crews must carry their own workers comp too. Ask the contractor for a current Certificate of Currency — it lists the policy expiry and covered roles.

Asbestos-Specific Cover

Standard Public Liability often excludes asbestos work unless specifically extended. A licensed Sydney demolisher should carry an asbestos extension on the PL policy. Ask for the wording, not just the certificate.

Plant & Equipment Insurance

Covers excavators, trucks and attachments on site. Not your problem as the homeowner, but a contractor without plant cover is one bad day from disappearing mid-job.

Professional Indemnity

Useful when demolition involves engineering input (e.g. partial demolition of attached structures). Not always required for straight knockdowns.

What to Ask Before Engaging

Current Certificate of Currency for Public Liability ($20M minimum)
Current Workers Compensation Certificate
Asbestos endorsement on the PL policy
NSW Demolition Licence (Class 1 or 2 as relevant)
SafeWork NSW asbestos licence (Class A or B)

Why Builders Care

If a demolisher injures someone or damages a neighbour's property and has insufficient cover, the builder and homeowner can be dragged into the claim. Builders prequalify demolishers specifically to push that risk off their balance sheet.

Frequently Asked Questions

Is $5M or $10M Public Liability enough?

For very small jobs, sometimes. For Sydney demolition near other buildings, $20M is the safe market standard. Going lower is a red flag.

Do I need to verify the insurance myself?

If you're the principal (homeowner), it's worth getting copies of the certificates of currency. Your certifier or builder may already do this on your behalf.

What if the contractor's insurance lapses mid-job?

Reputable contractors stagger renewals and provide updated certificates automatically. If yours can't produce a current certificate during the job, stop work until it's resolved.