Contract Works Insurance
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What is Contract Works Insurance
Last Updated: June 19, 2025Contract Works Insurance covers construction projects during their progress. It’s designed for builders, tradies, and property owners to protect against damage to the works caused by fire, weather events, vandalism, or theft during construction. You can opt for a one-off policy for a specific job or an annual policy that covers multiple jobs throughout the year. The policy can also include: Materials stored onsite, Tools, Plant & equipment Customer-supplied goods Public Liability cover can also be incorporated into a Contract Works Insurance policy and is generally referred to as Section 2 cover. This cover is usually required under building contracts or by project principals and lenders. Without it, you may be left out of pocket if something goes wrong before handover occurs. If you need assistance, please contact our team.
What does Contract Works Insurance cover
Last Updated: June 26, 2025Contract Works Insurance is designed to protect construction projects from start to finish. Whether you are a builder, contractor, or project manager, this type of cover helps safeguard your work during the build phase, including materials, site, and potential liability exposures. Depending on the policy and the options you select, Contract Works Insurance can include cover for: Loss or damage to the works under construction: Cover for the building or structure being worked on if it is damaged during construction. Damage caused by insured events: Includes fire, storm, theft, vandalism and other accidental damage that can impact a job site. Materials stored onsite: Covers building materials that are stored at the construction site prior to installation. Materials stored offsite: Covers materials kept at another location before being delivered to the site. Damage to materials in transit: Protects materials that are damaged or lost while being transported to or from the project site. Optional cover for tools & plant and equipment: Includes coverage for damage or theft of construction equipment, whether owned or hired. Optional cover for existing structures on site: If you are working on or near existing buildings, this coverage can protect against accidental damage to those structures. Public and...
Do I Need Contract Works Insurance if I Already Have Public Liability?
Last Updated: June 28, 2025If you already have Public Liability Insurance, it’s natural to ask whether Contract Works Insurance is also necessary. The short answer is — yes, you likely need both. They serve very different purposes and work together to protect your construction business. Here’s the core difference: Contract Works Insurance covers the actual project while it’s being built.If your site is damaged by a storm, fire, theft, or vandalism, this policy helps cover the cost of repairing or rebuilding the work. Public Liability Insurance covers injury or damage to third parties.It responds if someone is injured on site or if you accidentally damage someone else’s property during the job. Why Public Liability isn’t enough on its own: Public Liability won’t cover: Damage to the structure you’re building or renovating Tools, equipment, or materials stolen from the site Storm, flood, or fire damage to the project Damage caused by subcontractors Rework due to accidental errors on-site That’s where Contract Works steps in. It protects the project’s value and helps ensure you’re not left out of pocket if something goes wrong during the build. Why do most builders and contractors need both? Public Liability protects people and property in the vicinity of your work....
Is Contract Works Insurance a legal requirement?
Last Updated: June 28, 2025No, Contract Works Insurance is not legally required in most parts of Australia. However, it may still be required under certain conditions. You might need it if: Your building contract specifies that you must hold it A principal contractor or developer requests proof of cover A bank or lender requires it before releasing funds Even when it is not compulsory, Contract Works Insurance is strongly recommended for builders, contractors, and owner-builders. It helps cover damage from fire, storm, theft, or accidental loss during construction. Without this cover, you may be left paying for unexpected damage out of your own pocket. To learn more about this type of coverage, please contact us.
What is the difference between Single-Project & Annual Contract Works
Last Updated: June 26, 2025Contract Works Insurance can be arranged as either a single-project policy or an annual policy, depending on how you work. Both offer similar protection for construction projects, but their structure and flexibility differ. Annual Contract Works Insurance This type of coverage is designed for builders or contractors who undertake multiple projects throughout the year. It covers all eligible projects under one policy, typically for a 12-month period. Ideal for active builders or licensed contractors working across multiple sites Saves time by removing the need to arrange a separate cover for each job Reduces paperwork and can often be more cost-effective overall Meets licensing requirements for builders who need ongoing cover in place Covers eligible projects automatically during the policy period Single-Project Contract Works Insurance This option covers a specific job and ends once the project is complete or handed over. Suitable for one-off or high-value projects Starts when the work begins and ends at completion Often used by owner-builders or contractors working on a single job Products Liability is usually not included, as the cover ends when the project is finalised May suit small-scale builders or those who take on limited work throughout the year Which one is right for...
Does Contract Works cover work done by Subcontractors
Last Updated: June 28, 2025Yes, most Contract Works Insurance policies do cover work completed by subcontractors, as long as they are working under your direction and as part of the insured project. However, insurers generally expect that: You are the main contractor or owner builder taking out the policy Subcontractors are not working independently under separate contracts The subcontractor’s work is part of the declared project value and scope Some policies may exclude defective workmanship or limit coverage if subcontractors cause damage through negligence. Contract Works does not replace the need for subcontractors to have their own Public Liability Insurance. You may still be liable if they cause injury or damage to a third party, which is why it is important to check their insurance. If subcontractors play a large role in your projects, it’s worth confirming how they’re treated under your specific policy. Please contact us with any questions you may have about your subcontractors.
What if the project value changes during construction
Last Updated: June 26, 2025It’s not unusual for the value of a construction project to change once work is underway. Variations, changes in materials, or updates to the scope can all impact the total contract value. Most Contract Works policies include a Variations and Escalations extension, which allows for some flexibility. However, this is typically limited to a set percentage above the original contract value and is designed to account for minor adjustments only. If the project value increases beyond this margin, please notify us as soon as possible. This gives us the chance to: Review the updated contract value Adjust the policy if needed Make sure your project is fully covered for the actual value of work being completed Leaving the policy unchanged may result in underinsurance if a claim needs to be made during or after the project. At Webber Insurance, we’re here to help keep your cover accurate from start to finish. If your project scope or value changes, contact our team, and we’ll guide you through the next steps.
Does Contract Works Insurance include cover for tools or equipment
Last Updated: June 26, 2025Contract Works Insurance is primarily designed to cover the works under construction, but protection for tools and equipment can be added depending on your needs. It is important to understand how different types of equipment are treated under these policies. Tools and small equipment Cover for tools is not usually included automatically in a Contract Works policy, but it can often be added as an optional extra. This may include hand tools, power tools, and other portable equipment used on-site. If you regularly move your tools between sites or store them in vehicles, there may also be other options worth considering, such as a General Property policy, which can provide more flexible protection for mobile assets. Unregistered plant and equipment Items such as generators, compressors, lighting towers or trailers that are not registered for road use may be covered under a Contract Works policy if added as an optional section. This protects against damage or theft of these items. Registered plant and vehicles Contract Works Insurance does not cover registered items, such as vehicles, excavators, or plant that require registration for use on public roads or job sites. These must be insured separately under: A Plant and Equipment Insurance policy,...
Does Contract Works Insurance cover theft and vandalism
Last Updated: June 28, 2025Yes, most Contract Works Insurance policies include cover for theft and vandalism during the construction period. This usually applies to: Materials and fixtures stored on-site Parts of the project have already been constructed Tools and equipment (sometimes, depending on the policy) Some policies require signs of forced entry for theft claims to be accepted. Vandalism is typically covered when it causes physical damage to the project or materials. Ensure you review the policy wording for any exclusions or security conditions, such as requirements for locked storage, fencing, or alarms. If you need additional help, please contact us.
Can I get Contract Works Insurance as an Owner-Builder
Last Updated: June 28, 2025Yes, owner-builders can usually obtain Contract Works Insurance, but this depends on the insurer and the type of project. Most insurers will ask for: A valid owner builder permit or licence Approved council plans or building permits A clear project value and timeline Details about subcontractors (if used) Not all insurers cover owner-builder projects, and some may have exclusions or limits. Coverage typically includes the structure under construction and materials on-site, but does not always extend to tools or liability unless specifically included. If you’re unsure whether your project qualifies, please get in touch with us today..