Just as there are numerous risks within the construction industry, there are numerous forms of construction insurance to protect you.

We’ve been helping constructions businesses for over a decade. Call us on 1800 808 800 to speak with one of our specialist brokers.

Often when people are talking about construction insurance they’re referring to contract works insurance, but there are a few others that fall into the same category.

In this guide we’ll take a look at the various forms of insurance that businesses within the construction industry may need.

Contract Works
Contractual Liability
Public Liability
Professional Indemnity
Mobile Plant & Equipment
Tool Insurance

There are more, and we recommend speaking with one of our construction specialists for more detailed information on which could be right for you and your business.

Contract Works

Contract works is one of the most common forms of builders insurance.

You’ll sometimes hear it referred to as construction works insurance, builders all risk insurance and everything in between. Most commonly it’s just contract works insurance.

This insurance will protect your projects from a range of different risks, including:

Loss or damage to the project due to fire, storm and a range of other risks
Loss or damage to materials on the work site
Property damage or personal injury to others

Some of those points might seem like they overlap with public liability insurance, but there is a big difference.

Public liability is all about covering your negligence, so we’re talking about events where you are found to have been negligent, and that has contributed to the loss.

But contract works will cover you where you were not negligent, or basically, it wasn’t your fault.

For example, if your worksite was properly secured but a storm caused damage, that’s not your fault. It wouldn’t be covered by public liability but would be covered by contract works insurance.

For more information or a quote on contract works please call us on 1800 808 800 or use the buttons below:

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Contractual Liability

Contractual liability insurance is somewhat similar to contract works insurance, but it covering a different type of risk.

We recommend speaking with one of our specialists for a proper explanation, but basically it covers you for things that you might not normally be liable for, but the contract you have signed has made you liable.

An example from a real life claim was an electrical contractor installing a number of large generators on a construction side.

Ordinarily he wouldn’t be responsible for loss or damage caused to the generators if he wasn’t at fault, but the contract he entered into made him responsible for them whilst he was undertaking the work.

The generators suffered damage, but not because of the electrician. This meant his public liability wouldn’t cover the loss (as there was no negligence) but because he had contractual liability insurance he was covered.

Public Liability

This is the most common form of insurance for tradies, builders and most other contractors.

It will cover you in the event that you cause property damage or personal injury to a third party.

For some builders their contract works insurance will include their public liability, but you should never assume that is the case without confirming with your insurer or insurance broker.

Here at Trade Risk, public liability insurance is the most common form of cover we deal with, so you can count on us for expert advice and service.

For more information or a quote on construction public liability insurance please call us on 1800 808 800 or use the buttons below:

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Professional Indemnity

If you are providing design, consulting or advice services in the construction industry, you’ll most likely need professional indemnity insurance.

Like public liability it covers you where a third party has suffered a loss such as property damage or personal injury, but instead of from your physical actions it’s as a result of your professional services.

As with contractual liability, professional indemnity is one of the construction insurance types where it really is better to speak with one of our experts to find out exactly what you need.

Plant & Equipment

Many businesses in the construction industry are going to have mobile plant and equipment.

Often these items are amongst your biggest investments, so it’s important to protect them from the risks they face.

Mobile plant and machinery insurance can cover you for a range of risks including damage and theft.

Your machinery isn’t just limited to your excavators and similar, but also the trucks and trailers you use to cart them around.

A construction insurance package can be put together to cover all of your plant and machinery, as well as road vehicles.

Tool Insurance

Whilst plant and equipment will cover your larger items, most construction businesses will still have plenty of other smaller tools and equipment to protect.

Tool insurance can cover the rest of your gear such as power tools and all the other small bits and pieces in your kit.

A typical policy will cover your tools for damage or loss caused by fire or a vehicle collission or rollover. They will also be covered for theft following forced entry.

Cover is also available for accidental damage and theft without forced entry, however these options do have an impact of the cost of the poluicy.

Tool insurance is typically available from around $5k to $100k, but can be tailored depending on your needs.