Having the right cover for your project is paramount to success

What is Contract Works Insurance?

When you’re working on construction site, plenty of things can go wrong. Damage or loss to a building could cost you time, money and even your reputation. Meanwhile, an onsite injury can result in considerable pain, stress and financial loss.

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 job with less stress and worry.

Who should consider it ?

Contract works insurance is recommended for small, medium and large commercial ,industrial and domestic builders, suncontractors and owner-builders.

Most owner builders take out contract works insurance for specific contract, while professional builders generally choose an annual policy that cover multiple contracts.

There have been significant reductions in the number sand rates of injuries and fatalities in this industry over the last ten years or more. Nevertheless, the construction industry remains a high risk industry

( Safe Work Australia, 2015 )

The Construction industry had the fourth highest rate of serious claims in 2012 – 2013 (Safe work Australia, construction industry profile )


(According to the NSW Police, theft from housing construction sites accounts for 1% of the cost of a new home 9 NSW Police Force, Preventing site theft, 2018 )


Western Australia building industry’s anti- crime group, Busted, states that each year, building site theft costs the sector almost $25 million. (ABC ”regional residents urged to keep watch for building site theft, 2014 )

What Can it Cover?

Contract works insurance can cover the building which is under construction, whether its a kit home, or a multi story apartment or commercial buildings. It can also cover the equipment used in construction, as well as public liability risk.
Depending on your policy, contract works insurance can cover you against:

Type of Cover

Potential Benefits

Property Damage

Physical loss or destruction of tangible property, plant and equipment as well as removal of debris

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 product after they cease to be in the your possession or control

Legal Expenses / Defence costs

Legal costs and expenses your are legally liable to pay following legal proceedings bought 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?

Exclusions the excess you need to pay and limits of liability can vary greatly depending on your insurer. Polices generally wont include cover for:

  • loss after work has ceased for more 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 y the insurer

Case study

After working for other construction company owners all his working life, Craig starts his own small earth moving business. In the first couple of years, he borrows

money and invests much of his income back into the business, buying the latest equipment and work vehicle. After starting work on a new construction at a new site, he leaves hid 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.

A product disclosure statement (PDS) is available from us. You should consider the PDS in deciding whether to acquire or continue to hold, business insurance.

Important note: This information is provided to assist you in understanding the terms, implications and common considerations with this type of insurance. It does not constitute advice, and is not complete, so please discuss the full details with us.

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