Contract Works Insurance and Public Liability Insurance cover different types of risk.

Having Public Liability Insurance does not mean physical damage to the construction works themselves is insured.

What does Public Liability generally cover? #

Public Liability Insurance is primarily designed to cover certain legal liabilities arising from:

• Third-party personal injury
• Third-party property damage

For example, it may respond where construction activities accidentally damage a neighbouring property, subject to the policy terms.

What does Contract Works Insurance generally cover? #

Contract Works Insurance is designed around physical loss or damage to insured construction works during the project.

Depending on the policy, this can include insured damage caused by events such as:

• Fire
• Storm
• Theft
• Vandalism
• Accidental damage

It can also cover materials and other insured project property, subject to the policy.

Does Public Liability cover damage to the work being built? #

Generally, Public Liability should not be relied upon as insurance for the construction project itself.

This is one of the reasons Contract Works Insurance can be important.

Does Contract Works cover everything Public Liability does not? #

No.

Contract Works policies have their own:

• Definitions
• Limits
• Excesses
• Exclusions
• Insured parties
• Project conditions

Tools and plant, existing structures, flood, defective work and other exposures may require specific consideration.

Do I need both? #

Potentially.

Whether you need both depends on:

• Your contract
• Who is responsible for the works
• Whether another party has arranged project insurance
• Whether you are an insured under that policy
• The value and type of project
• Principal or client requirements

Do not assume another contractor’s Contract Works policy automatically covers your work.

Webber Insurance can arrange both single-project and annual Contract Works policies where appropriate.

Contact our team if you would like help reviewing your project insurance requirements.