How to protect yourself from storm and flood risk

Storms and flooding can wreak havoc on landscaping projects – from newly laid gardens washing away to erosion undermining retaining walls. Builtin construction insurance expert Ben Rickard outlines the key risks for landscapers and the steps you can take to protect your business, your clients, and your bottom line

As weather events become more intense and frequent, storm and flood damage are among the most significant risks landscapers face. The financial impact can stretch well beyond clean-up costs and can expose your business to liability claims if things go wrong.

Storms and flooding are natural hazards that can cause:

• Damage to work in progress.

  
  

• Heavy rain can wash away newly sown areas, topple structures, or saturate ground before planting is established.

  
  

• Erosion and ground instability.

  
  

• Water running across a site can undermine soils, retaining walls, paving and softscape features.

  
  

• Neighbouring property damage (floodwater can spread beyond a site, damaging neighbouring landscaping, driveways, fences or structures).

Natural hazard events like these are covered under contract works insurance policies, but that assumes this cover has been put in place. Liability for damage to neighbouring property is also insurable under public liability insurance. Without these policies in place, landscapers may face uninsured losses and potential liability claims. Below are the main types of insurance that relate to storm and flood damage for landscaping businesses.

CONTRACT WORKS INSURANCE

What it covers: Accidental physical loss or damage to landscaping work while it’s under construction – including storm and flood.

Why it matters: Projects at risk from heavy rain, surface flooding, or storm-related debris can suffer substantial losses if not covered. If you haven’t arranged this cover and your works are damaged, you may have to bear the cost yourself.

Often, the main contractor will be responsible for arranging this and, in that case, it should cover all their subcontractors as well. As a subbie, you should request to see the insurance certificate, to make sure it has been properly arranged to also cover you and your materials and labour. If you are working directly for a homeowner, you should make sure they have spoken with their home insurer about coverage for the landscaping works while under construction.

Again, get confirmation from them that you are noted as an insured party for the duration of the project (or the insurer could come after you to recover any claim costs).

You may also wish to arrange your own ‘blanket’ contract works insurance. This is not the ideal way to do it, but some contractors find it easier to cover their own works themselves rather than relying on others to arrange it for each project.

Tips:

• Check that your contract includes a provision requiring the client or principal to arrange contract works insurance.

  
  

• If works are standalone, consider whether you should arrange contract works cover yourself.

PUBLIC LIABILITY INSURANCE

What it covers: Your liability if your landscaping work (or your activities generally) causes damage to a client’s property (outside of the works themselves) or third-party property, such as a neighbour.

Why it matters: If improperly managed drainage or earthworks you installed contributes to flooding or water damage to a neighbour’s property, liability insurance can provide protection for property damage claims.

As these events increase in frequency, there are an increasing number of both insurance recovery and legal claims against negligent parties, such as contractors and property owners, where their actions (or inaction) has contributed to property damage.

It is important to note that public liability typically protects against damage to another person’s property – it doesn’t cover damage to your own works from storms or floods. That’s why contract works insurance is essential.

PROFESSIONAL INDEMNITY (DESIGN LIABILITY)

If your role includes landscape design, storm-related issues such as insufficient drainage planning, poor grading that diverts water incorrectly, or miscalculated surface water management could lead to financial loss for a client.

Professional indemnity insurance can cover claims arising from design errors.

HOW LIABILITY AND RISK ARE ALLOCATED IN CONTRACTS

Storm and flood risk can be a contentious point in landscaping contracts because weather events are ‘forces of nature’. The contractual allocation of that risk determines who pays for damage and who bears liability.

In many standard construction or landscaping contracts:

• The contractor (landscaper) is responsible for the care of works while on site and may have to bear repair costs following storm/flood unless the event was such that a reasonable contractor could not have foreseen or made provision for it.

  
  

• The contract should expressly identify who arranges insurance for weather-related loss and who pays the excess.

  
  

• Without clear terms, unresolved disputes can arise after a storm event, increasing cost and delay.

Builtin’s recommended best practice:

• Clarify storm and flood risk in your contract.

  
  

• Specify who must arrange and pay for insurance and what level of cover is required.

  
  

• Make sure there is clarity on excesses and proof of insurance before work starts.

WHAT CLIENTS NEED TO KNOW (AND WHY YOU SHOULD CARE)

House insurance covers storm and flood damage but, as the cost and frequency of disaster events increase, and premiums rise accordingly, we expect to see more options for homeowners to pick and choose the cover they take. This may include opting out of natural hazard cover in some high-risk locations as the premium costs become too high.

If they have house insurance, then they will also have cover from the Natural Hazards Commission (formerly EQC). This provides cover for damage to land but is limited to the area within 8m of the home or other structures on the property and the accessway. Retaining is included but the cover will only compensate what was already there, it won’t include any betterment when rebuilding it to modern standards.

PRACTICAL RISK-MANAGEMENT TIPS

Before work starts:

• Check site history for flood risk and drainage issues.

  
  

• Agree with the client who has responsibility for stormwater management (eg, swales, drains).

  
  

• Document existing site conditions with photos and site notes.

During construction:

• Secure loose materials and equipment when severe weather is forecast.

  
  

• Implement temporary erosion and sediment controls during heavy rain.

  
  

• Communicate with clients if forecasts suggest a significant weather event.

After a storm:

• Photograph damage promptly – insurers often require evidence.

  
  

• Notify insurers as soon as practicable – delays can affect claims.

  
  

• Keep good records of repair quotes, invoices, correspondence, and labour costs.

IN A NUTSHELL

Storms and floods are among the most significant natural threats to landscaping work. Without the right insurance, a single event can lead to uninsured repair costs, project disputes, or liability claims.

With appropriate contract works cover, public liability, design liability (if applicable), and robust contracts that allocate risk clearly, landscapers can significantly reduce their exposure and protect their businesses.

Builtin is New Zealand’s Trade Insurance Experts. For more information visit builtininsurance.co.nz, email Ben Rickard at ben@builtin.co.nz

or call him on 0800 BUILTIN