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Do I Need Contract Works Insurance?

Running a trade business is an attractive opportunity for many, but it comes with inherent risks – injuries, accidents and theft, just to name a few. If you have your own trade business or you’re thinking about starting one, chances are you’ve heard of contract works insurance. In this article, we’ll go over what contract works insurance is and who needs contract works insurance in Australia.

What is contract works insurance? 
The purpose of contract works insurance is to protect your business from significant and sudden financial loss. More specifically, it protects your business, people and assets in case of damage that occurs on a construction project, out of your control. It’s mainly designed for businesses that operate their own projects, and not subcontractors.

Contract works insurance facts
  • Cover can be provided on an annual basis or for an individual project
  • Covers the contractor, sub-contractors and other parties linked to a project
  • The coverage is more exhaustive than public liability insurance

Contract works insurance protects businesses from occurrences such as:
  • Theft of materials or assets on the construction site
  • Damage to materials or assets on-site
  • Third party injuries or damage to property

Who needs contract works insurance in Australia? 
Specific insurance requirements will vary depending on the specifics of each business, and there are different levels of cover.

Do any of these statements apply to your business? 
  • You’re a tradesperson or a builder
  • Executing construction projects is part of your business operations
  • You’re sometimes contracted to work on construction sites
  • Renovations are a regular part of your business operations
  • You possess materials for a construction project, stored or in transit
  • You run a construction project that may exceed conventional protection limitations

If any or all of these statements apply to you, you may need contract works insurance. Although it may feel like a large upfront cost, remember that the financial blow of an accident or theft could put your business out of action.

Need help with contract works insurance in Australia? 
To sum it up, if your business is undertaking its own construction projects, you must consider contract works insurance. At the end of the day, no matter how careful you are, accidents happen for reasons out of your control. Your business is your income, so it’s important to have your back covered when it comes to expensive risks. Remember, minimising these risks ensures your continued success in business!

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.

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.

Purchase up to six products under one Business Insurance Package. 

To sum it up, if your business is undertaking its own construction projects, you must consider contract works insurance. At the end of the day, no matter how careful you are, accidents happen for reasons out of your control. Your business is your income, so it’s important to have your back covered when it comes to expensive risks. Remember, minimising these risks ensures your continued success in business!

At Norton & Co, we specialise in a range of different insurance products to help your business navigate the insurance market. Contact our team today for more information.
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.


Scott Norton, Norton & Co Insurance, ABN 11628176787, AFSL 239049

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