Contract Works Insurance can be arranged for one construction project or across multiple eligible projects under an annual policy.

The main difference is how projects are declared and insured.

Annual Contract Works Insurance #

Annual cover is generally designed for builders and contractors undertaking multiple projects during the policy period.

Depending on the policy, projects can be automatically covered when they commence if they fall within agreed parameters such as:

• Maximum contract value
• Maximum construction period
• Permitted construction types
• Geographic limits
• Declared annual turnover or contract values
• Other underwriting conditions

Projects outside those parameters may need to be referred to the insurer before work begins.

Annual cover should not be interpreted as automatically covering every project the business undertakes.

Single Project Contract Works Insurance #

A Single Project policy is arranged specifically for one construction project.

The insurer will generally consider:

• Project location
• Contract value
• Nature of the works
• Construction period
• Existing structures
• Parties involved
• Unusual construction features

Cover generally applies for the agreed construction period and can include an agreed maintenance or defects period depending on the policy.

Which structure is appropriate? #

Relevant factors can include:

• Number of projects
• Typical and maximum project values
• Project durations
• Construction types
• Contractual insurance requirements
• Whether projects consistently fit within annual policy parameters

Annual and Single Project policies can also have different limits, liability arrangements, excesses and conditions.

Contact our team if you need help comparing the two structures.