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16
May

The Silicosis Crisis and What It Means for Your Business

The risks of the lung disease silicosis aren’t just hitting big construction sites—small businesses are facing it too, with cases rising fast among tradies and many others working with stone, concrete, and dust-heavy materials.If your team is cutting, grinding, or drilling, you’re right in the firing line for this deadly lung disease—and insurance gaps could leave your business wide open.

What is Silicosis?

Silicosis is a preventable but irreversible lung disease caused by inhaling fine silica dust. This dust is released when materials such as concrete, stone, or engineered stone are cut, ground, or drilled. Once inhaled, these particles can cause permanent lung damage, leading to chronic illness and, in some cases, early death.

Up to 600,000 Australian workers are exposed to silica dust at work each year—so, for every four tradies on a site, at least one could be at risk. In the last decade, reported cases of silicosis have jumped by 20%.

The most common professional indemnity (PI) claim types

Here’s what the trends in professional indemnity insurance for real estate show are the highest types of claims:

  • Property mismanagement: Landlords alleging financial losses due to poor maintenance or delayed repairs.
  • Tenant injuries: Claims stemming from hazards, including broken stairs, loose floorboards or mould infestations.
  • Misleading listings: Incorrect or missing details in advertising, such as not disclosing known defects whether printed, online, on radio, TV, YouTube video, or personal communications with potential buyers or tenants.
  • Valuation disputes: Buyers or sellers claiming financial harm due to inaccurate pricing.
  • Contract errors: Overlooking legal clauses or making errors that lead to disputes or losses.

Even seemingly minor mistakes—think outdated property image or exaggerated rental income estimate—can trigger a claim.

Why Should Small Business Owners Care

Eight out of 10 construction workers and more than 90% of those working in mining industries are at risk of exposure to respirable crystalline silica (RCS) at work.

In Victoria alone, 210 cases were diagnosed between 2019 and 2022, with almost all of those affected working in the stone benchtop industry, and 95% of those with artificial (engineered) stone. Three in four of these workers were under 50, showing this isn’t just an ‘old bloke’s disease’ anymore.

You might be surprised to know the expanse of industries at risk: construction, civil construction, concrete industry, stone masonry, mining and extractive, tunnelling, sandblasting, manufacturing, transport (including rail and excavation), utilities, and agriculture.

The list doesn’t end there. Dentistry, jewellery, ceramics, glass, foundries, paint manufacturing, and even some teaching (ceramics) and agricultural roles are also impacted. Any workplace where materials containing silica are cut, ground, polished, or processed can pose a risk—even if the exposure is less obvious than on a building site.

Insurance and Workers Compensation – Are You Covered

Silicosis is shifting the insurance landscape for SMEs. Workers’ compensation is mandatory, but silicosis claims can be complex—especially with past or multiple exposures.

Some insurers are now adding total exclusions for silicosis on their liability policies, particularly for businesses importing, manufacturing, or working with engineered stone. This means you could be left footing the bill if an employee, subcontractor, or even a site visitor develops silicosis and claims negligence.

Income protection and life insurance policies for business owners often exclude occupational illnesses like silicosis altogether.
Not sure what your policy covers? Check with us as your broker now—don’t wait for a claim to catch you out.

How SMEs Can Reduce Their Risk

The good news? There are clear, practical steps you can take to protect your workers and your business:

  • Know your legal duties:
    Safe Work Australia and state WHS laws set strict limits on silica dust exposure and require health monitoring for at-risk workers.
  • Invest in the right PPE:
    Dust masks alone won’t cut it—use proper respirators, wet-cutting tools, and high-efficiency vacuums.
  • Ban on engineered stone:
    From January 2025, manufacturing, supply, and installation of engineered stone is banned nationwide.
  • Educate your team
    Make sure every tradie knows the risks and how to work safely.
  • Regular health checks
    Early detection can make a huge difference for affected workers.
  • Review your insurance
    Make sure your policies specifically cover occupational diseases like silicosis.

Other moves may be in the wings. Occupational hygiene expert Richard Bolton from EDP Consultants has called on regulators and industry to introduce smarter tools and improve ventilation and extraction systems when working with materials containing crystalline silica.

Why This Matters for Your Business

Silicosis isn’t just a health issue—it’s a business risk.

Legal claims, workers’ compensation disputes, and insurance gaps can all hit your bottom line hard. With the ban on engineered stone now in force and regulators ramping up compliance checks, small businesses are under more scrutiny than ever.

As your broker, we can work with you to review your cover, identify any gaps, and make sure your business is protected—so you can focus on getting the job done, safely and confidently.

 

Article Supplied by OneAffiniti

Photo by cagkansayin

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