Contract Works Insurance can cover certain physical loss or damage to construction works while a project is being built.

Whether a tradie needs their own policy depends on their contractual responsibilities and how the project insurance has been arranged.

What can Contract Works Insurance cover? #

Subject to the policy, cover can include insured damage to:

• Work under construction
• Building materials
• Components forming part of the project
• Temporary works
• Other insured property connected with the project

Insured events can include risks such as fire, storm, theft, vandalism and accidental damage, subject to the wording.

Contract Works can be arranged by parties such as a builder, head contractor, principal, owner, developer or subcontractor. Who should arrange it depends on the contract and project structure.

What should a tradie check? #

Do not automatically assume the head contractor’s policy covers your work or materials.

Before relying on another party’s Contract Works policy, check:

• Whether you are an insured party
• Whether your work and materials are covered
• What excess applies
• Relevant exclusions
• Contract requirements
• When cover starts and ends

A subcontractor may still need their own insurance depending on these arrangements.

If you contract directly with the client and are responsible for the project or works under your contract, Contract Works Insurance may also be relevant even if you would normally describe yourself as a tradie rather than a builder.

Public Liability Insurance primarily addresses certain third-party personal injury and property damage liabilities. It is not a substitute for insurance covering physical damage to the construction project itself.

Contact our team if you need help determining how Contract Works Insurance applies to your projects.