Contract Works Insurance is designed to cover physical construction projects against damage or loss during the course of the build. It is generally taken out for the full value of a specific project and covers risks such as fire, storm, vandalism, theft of building materials, and accidental damage during construction.
Because the policy is based on the entire value of the project, it is typically arranged by the Principal or Head Contractor as the party responsible for overseeing the job from start to finish.
If you are working as a Subcontractor on a construction project, you would not usually require your own Contract Works policy. Instead:
- You should have your own Public Liability Insurance to cover injury or damage caused by your work
- The Material Damage section of the Contract Works policy held by the Principal should cover all materials on-site, including those you supply as a subcontractor
However, if you run your own projects directly for end clients, such as building a home, renovating a bathroom, or constructing a deck, you may be considered the Principal for insurance purposes. In these cases, a Contract Works policy may be required to protect:
- The value of the work and project materials
- The building structure while under construction
- Your client’s property, where applicable
If you’re unsure whether your business activities require Contract Works Insurance, we can review your operations and provide guidance tailored to your project structure.
