Contract Works Insurance
If you’re undertaking your own construction projects you’ll need to consider contract works insurance.
In some ways this form of insurance is similar to public liability, however it provides additional coverage for those running their own projects as opposed to subcontracting to others.
Here at Trade Risk we can assist with contract works insurance for builders and tradies, and in this guide we’ll run through the cover in more detail.
What is Contract Works Insurance?
Contract works insurance, which is sometimes referred to as construction all risks insurance, is a form of cover which can protect a builder from a range of events.
As mentioned earlier the cover is similar in some ways to public liability insurance, however there are some major additional benefits.
Whilst public liability covers you only for property damage or personal injury that has been caused due to your negligence, contract works can cover a range of other risks including those which are outside of your control.
Some of the risks covered include the following:
- Property damage or personal injury to others
- Loss or damage to your project due to fire, storm and a range of other risks
- Loss or damage to materials on the work site
There are additional risks which can be covered depending on the insurer, however it is best to speak to one of our insurance experts for more detailed information.
Who Needs It?
The major users of this form of insurance are builders, hence why it is often referred to as builders contract works insurance.
Along with builders, the insurance should be considered by anyone in the building or construction industry who runs their own projects.
These projects could range from building new homes through to renovations and alterations.
Broadly speaking a subcontractor will not require contract works insurance unless they are running their own projects on the side.
If you are in doubt as to whether or not you could benefit from this insurance we strongly recommend that you contact Trade Risk and speak with one of our experts.
Does it Replace Public Liability?
There are some cases where the right contract works policy will replace a public liability insurance policy, meaning that you don’t need both forms of cover.
It is important that this is done properly to ensure you aren’t left exposed, and therefore it is imperative that you speak with an expert before choosing not to take out a separate public liability policy.
Types of Policies
There are two main types of contract works insurance available.
You can have an annual policy which covers all of your construction projects for the year, or you can take out a single project policy which covers a single project.
Aside from these main two forms of cover, each insurer will have their own policies which differ slightly from one another.
For example some insurers include tool cover in their contract works policies, but some only offer cover whilst on site and others offer cover both on and off site.
It’s important to run through these details with your broker or adviser to ensure you’re getting the appropriate cover for your needs.
How Much Does it Cost?
The costs of contract works insurance will depend on a number of different factors.
One of the major factors is the expected value of the contracts you will be undertaking. The insurer will most likely want to know more about each construction project as well.
The only way to get an accurate idea of the cost of your contract works insurance is to request a quote and provide the required information.
Quotes for contract works insurance are available by calling our office on 1800 808 800.
We are unable to provide quotes for this form on insurance via our online quote forms, however you can still make an online enquiry via our contact form.
For more information or to discuss your insurance needs with one of our trade experts please contact our office.