Contract works insurance helps ensure your business and workers are protected on construction sites. It provides important cover for commercial, industrial and domestic builders, sub-contractors, and owner-builders against damage, natural disasters, injury, theft and product or public liability.
It’s designed to cover work that’s already underway. It can pay to repair or redo the work if it gets damaged by an insured event like fire, flood, storm, vandalism or theft.
Why you should consider it.
Building projects can be expensive, time and labour consuming, so if a builder experiences injury, loss or damage, it can have a huge impact on job profitability and reputation.
As a job progresses towards completion or as extensions and renovations develop, there are different risks to manage at each stage of the build to ensure the job is finished successfully and on time. Contract works insurance provides that certainty during these stages.
Most owner builders take out contract works insurance for a specific contract, while professional builders generally choose an annual policy that covers multiple contracts.
What can it cover?
Contract works insurance can cover the building which is under construction, whether it’s a kit home, straw bale or mud brick home, or multi-story apartment or commercial building. 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:
- Natural disasters, such as bushfires, fire, earthquakes, flood and water damage, subsidence and landslip, storm, tsunami or wind
- Damage to property caused by defects, theft and malicious damage or vandalism
- Smashed glass
- Public and products liability insurance, plus extra related costs
- Third-party personal injury or property damage, as well as extra costs like replacing builder’s tools, escalation or removal fees.
What isn’t covered?
As with any insurance there are limits and exclusions that apply.
There may also be a deductible, excess or limits on this type of cover so check with your Wereck insurance broker.