Contract Works Insurance is designed to protect construction works while a project is underway.

It can be relevant to:

• Builders
• Contractors
• Tradespeople
• Developers
• Property owners undertaking construction projects

Subject to the policy wording, Contract Works Insurance can cover physical loss or damage to the insured works caused by events such as:

• Fire
• Storm
• Theft
• Vandalism
• Accidental damage

What property can be insured? #

Depending on the policy, cover can extend to items such as:

• Work already completed
• Materials incorporated into the project
• Materials stored onsite
• Temporary works
• Principal-supplied materials or goods

Plant, tools and equipment may require separate cover or specific sections of the policy and should not be assumed to be automatically included.

Single project or annual cover #

Contract Works Insurance can generally be arranged as:

• Single Project: Cover for one specific construction project.
• Annual Contract Works: Cover for multiple eligible projects commenced during the policy period, subject to the policy terms and declared limits.

What about Public Liability? #

Public Liability can often be arranged alongside Contract Works Insurance.

Some construction policies describe this as a separate liability section, but the structure and terminology vary between insurers.

Who is responsible for arranging it? #

Responsibility for Contract Works Insurance can be determined by the construction contract.

Builders, principals, developers and property owners should check who is required to arrange the insurance and what parties need to be insured or noted.

What about existing buildings, tools and equipment? #

For renovation, extension and alteration projects, an existing structure may need to be specifically insured. It should not be assumed to form part of Contract Works cover automatically.

Tools, plant and construction equipment can require a separate policy section, an extension, Plant and Equipment Insurance or General Property Insurance.

Who may need to be insured? #

Depending on the construction contract and policy, insured parties can include combinations of builders, principal contractors, owners, developers and subcontractors.

The parties and interests to be insured should be checked against the project contract.

Contact our team if you would like help reviewing the insurance requirements for a construction project.