What is contract works insurance?

29 May 2024

Contract Works Insurance is an essential type of cover for tradies involved in construction and building projects. It protects against the financial implications of negative unforeseen events, such as damage or loss to a construction site, and includes coverage for its works, materials, and equipment.

Whether it's a natural disaster, theft, or an accident, this kind of insurance ensures that you’re not left out of pocket during critical phases of construction.

It's not just about protection, however; it’s also about peace of mind. Knowing your work is secure allows you to focus on what you do best — building and renovating, without the need for undue stress.

What DOES contract works insurance cover?

Contract Works Insurance covers a broad spectrum of risks to ensure construction projects run smoothly from start to finish.

This includes cover for loss or damage to the construction materials and works, damage caused by weather events, and even theft of building materials from the site.

It also extends to cover the costs that may arise from delays, such as hiring alternative equipment or extra labour to keep the project on track.

What DOESN’T contract works insurance cover?

While Contract Works Insurance provides comprehensive coverage, there are exclusions that you need to be aware of.

This kind of insurance generally does not cover normal wear and tear, mechanical breakdowns not caused by an insured event, or losses due to defective design and workmanship. Issues arising from non-compliance with safety regulations or contractual obligations may also be excluded.

It's crucial for us to understand these exclusions to ensure that we are not caught unprepared.

Do I still need public liability insurance if I have contract works insurance?

Yes, having Contract Works Insurance does not negate the need for Public Liability Insurance.

While Contract Works Insurance covers damage or loss related to the construction project itself, Public Liability Insurance is crucial as it protects against claims of personal injury or property damage caused to third parties. This means if someone is injured on the site or there is damage to a neighbouring property, Public Liability Insurance will cover the legal costs and any compensation awarded. Contract Works will not.

Both insurances work hand in hand to provide a comprehensive safety net that safeguards your financial health against various risks on the job.

Want to learn more about Public Liability? Read more on our Public Liability page here.

Annual policy vs single project cover

Choosing between an Annual Policy and Single Project Cover depends on the frequency and scope of your projects.

An Annual Policy is cost-effective and convenient if you handle multiple projects throughout the year, as it offers continuous coverage without the need to purchase a new policy for each project.

In contrast, Single Project Cover is tailored for a specific project, and is ideal for tradies with one-off or irregular project needs.

Understanding these options helps us align our insurance strategy with our business operations to ensure we're always adequately protected.

Does contract works insurance cover staff, employees, and subcontractors?

Contract Works Insurance primarily covers the physical aspects of a construction project. It does not automatically cover liabilities related to staff, employees, or subcontractors. These individuals should be protected under separate policies such as Workers' Compensation and Public Liability Insurance.

It's crucial for us to secure comprehensive coverage that encompasses all aspects of workforce safety and third-party liabilities to maintain a secure and compliant worksite.

How much does contract works insurance cost?

The cost of Contract Works Insurance varies depending on several factors, including:

Additional aspects such as the level of risk associated with specific construction activities and your chosen deductible also influence your premium.

We recommend discussing your specific project details with us to obtain a tailored insurance quote that reflects your unique needs and budget.

Can I pay by the month?

Yes, we understand the importance of flexible payment options. Tradesure offers the convenience of monthly repayments, allowing you to manage your cash flow more effectively without compromising on the coverage needed for your projects.

This flexibility ensures that you can maintain optimal insurance cover while balancing other financial commitments.

Get a quote for your business

Ready to protect your next project? Don’t hesitate to get in touch with Tradesure to learn more about our tailored insurance offers. Our team is here to help you assess your needs and provide a quote that aligns with your business requirements. 

Don't let unforeseen events disrupt your workflow. Secure your coverage with Tradesure today.

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