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Contract Works Insurance: The Basics

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Contract Works Insurance, sometimes known construction all risks insurance is a necessary policy for contractors, builders, property developers, and others in the industry. These are comprehensive policies which protect all construction-related activities on a single project: the “works.” The project is covered for all stages of the construction process, from development through completion and follow-up testing or commissioning periods. This policy protects in the event of loss, damage, theft, or other unforeseen occurrences, and covers the many risks inherent in construction projects. Policies also cover tools and protect equipment suppliers and other third parties.

Who Should Purchase Contract Works Insurance?

Builders
Civil Contractors
Landscapers
Larger trades if required
Pool Builders
Property developers
Tilers and plasterers
Project managers
Plasterers

What Projects Can Typically Be Covered?

Homes
Unit Blocks
Office buildings
Roads
Airport and harbour facilities
Theatres
Schools
Water supply
Drainage
Dams
Hospitals
Utilities
Much more

What to Look For

Your contract works insurance coverage should be a thorough policy covering all possible associated risks. You will need to consider the unique circumstances of your project to determine if you need additional add-ons or unusual coverage. Many policies only provide coverage for a specific construction period such as 12 months. Your insurance broker can help you select from a range of policies, to help you find the one appropriate for your needs. It is very important to ensure you have coverage for the entirety of your project duration, particularly if there is some uncertainty as to the length of the work.

Another concern with potential coverage limitations involves cessation of work. Many policies contain specific clauses that state that insurance coverage will end if work at a construction site does not occur for a period of 30 days. Other policies allow for longer periods of cessation, which can be vital on a construction project, where delays are exceedingly common. Having proper coverage for cessation periods and overall project length ensures you are covered even if problems throw a wrench into your schedule and push your timeline dramatically off track.

Macey Insurance Brokers Can Help

Projects in the construction industry are naturally complex, involving a large number of factors. While you could attempt sourcing insurance policies on your own, this is not recommended. Instead, consider working with a knowledgeable and experienced insurance broker. At Macey’s, we’ve assisted thousands of clients with a wide variety of situations. We have years of expertise working with builders and contractors, and know exactly what is needed in these multidimensional circumstances.

Management Liability Insurance

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

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Business Insurance

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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Business Package

Purchase up to six products under one Business Insurance Package.

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Give us a call or come on in for a quote. We will discuss your project in detail with you and introduce you to a variety of options for contract works insurance. As we review your needs, we’ll look for the right policies that will keep your construction project securely protected from start to finish. We work with some of the top insurance providers in Australia, and are able to find you the best policies at the most affordable rates.

Subcontractors contractor construction

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Brendan Goddard, Macey Insurance Brokers, ABN 92 003 364 065, AFSL 240 922

This article originally appeared on Macey Insurance Brokers Blog and has been published here with permission.