Contract Works Insurance
Millions of dollars in tools, equipment and materials are stolen from construction sites every year. This can have a significant cost impact for builders and their clients and result in delays to the building period if supplies are unable to be replaced.
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Tailored Contract Works Insurance Solutions
Contract Works Insurance, also known as Construction Insurance, is essential for managing risks on construction sites. It offers comprehensive coverage to contractors and builders, ensuring that they are protected against unforeseen events such as theft, damage, and third-party claims during the construction process.
That’s why having the right amount and type of contract works insurance is an important part of your business toolkit, allowing you to get on with the job with less stress and worry.
Who Needs Contract Works Insurance?
Contract works insurance is recommended for small, medium and large commercial, industrial and domestic builders, contractors, sub-contractors, developers, tradies, owner-builders and anyone involved in civil, commercial, or residential construction projects
Most owner-builders take out contract works insurance for as specific contract, while professional builders generally choose an annual policy that covers multiple contracts.
Did you know?
(in AUD) The amount of high-cost construction machinery stolen from work sites around Australia each year.
(The West Australian, ‘How to protect your construction equipment from theft’, 2020)
The percentage of construction projects worldwide that are delayed due to adverse weather.
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1300 900 207
What Does Contract Works Insurance Cover?
Contract works insurance can cover the building which is under construction, whether it’s a kit home, straw bale or mud brick home, multistory apartment or commercial building. It can also cover the equipment used in construction, as well as public liability risk. During renovations to an existing structure, it can cover damage to the structure which occurs during the construction process.
Depending on your policy, contract works insurance can cover you against:
Property Damage
Public Liability
Sub-contractor liability, products liability and cross liability.
Product Liability (only available from some insurers)
Third-party personal injury or property damage resulting from an occurrence caused by your products after they cease to be in your possession or control.
Legal Expenses/Defence Costs
Legal costs and expenses you are legally liable to pay following legal proceedings brought by or against you.
Existing Structures (optional cover)
Sudden and accidental physical damage to existing structures caused by natural events and the actions of the builder or contractor.
What usually isn’t covered?
Loss after work has ceased for more than the number of days specified in the policy.
Consequential loss.
Cost of rectifying or correcting defective workmanship.
Work underground or in water unless specifically agreed by the insurer.
Case Study
After starting work on a new construction at a new site, he leaves his tools and equipment locked in a garage on the site overnight. But that night, thieves break into the garage and steal Craig’s tools, worth $25,000.
Craig contacts his insurance broker who helps him put in a claim. He’s quickly reimbursed for his loss, so he isn’t out of pocket and can keep his business running.