Builders Insurance for Construction Projects

Construction insurance policies cover Material Damage from Accidental Damage, Fire, Storm, Malicious Damage, Impact Damage and Theft, and also Liabilities from personal injury to Third Parties arising from the work.

Business Insurance Specialists can assist in projects up to any value.

What are the types of Contract Works Insurance Policies available ?

There are three main types of Contract Works Insurance policies available for construction sites.

These are:

Annual Contract Works
Single Project One Off Contract Works
Owner/Builder contract works insurance

Policies include sub-limits such as:

Employees Tools
Removal of Debris
Principal Supplied Material
Mobile Machinery & Equipment
Materials Stored Onsite / Offsite
Transit Cover

Do I needs Contract Works insurance?

Builders and construction companies have traditionally been the main types of businesses that take out Contract Works insurance or Construction policies.

Other parties can take coverage for their exposures relating to a construction project including Developers, contractors and subcontractors. We recommend that all parties be fully conversant with their insurance policies and who is taking the risk and is responsible for what insurance.

What Construction insurance benefits are available ?

Construction policies can be extended, if required, to include coverage for benefits that are not standard in all covers. These benefits are more typical of major projects. Chief Financial Officers or Risk Managers need to determine the level of risk taken in-house versus choosing to have the risk transferred to the insurer via your insurance programme.

Advance Business Interruption: loss of revenue when insured “damage” causes delay in project completion Construction Period:
Up to 36 months construction period and 24 months defects liability period
Contractors Plant, Tools and Equipment: hand tools, mobile plant and equipment and reusable plant such as scaffolding (on or off site)
Contractors Pollution Liability: liability for pollution events, including clean-up costs, defence costs and accidental disturbance of asbestos
Cover Enhancements: Selected policy exclusions can have coverage written back into your Construction policy.
Defects Liability Period: limited loss, damage or liability occurring during the defects liability period specified in a contract
Difference in Conditions: covering differences in deductible or conditions contained in a principals policy
Errors and Omissions: covering negligent acts, errors or omissions committed in the course of your business activities
Existing Structures: first loss limit or replacement value for pre-existing property
Hired in Plant: loss or damage to plant hired in
Interest Funding: covers additional interest incurred when project is delayed
Liquidated Damages: covers liquidated damages incurred by builder of residential constructions
Partial Occupancy: allows for occupation to occur prior to practical completion
Partially Completed Projects: covering contracts that have commenced without insurance
Principal Supplied Material: materials provided to the contractor by the principal (free of cost)
Property in Care Custody or Control: loss or damage to goods in your custody or control

Additional Benefits which differ depending on policy coverage chosen include:

Tools and Equipment: “New for Old” if less than two years old
Contractors and Subcontractors: Insuring contractors and subcontractors where required to by contract
Marine Transit: Covering shipments within Australian coastal waters by barge or roll-on roll-off ferry
Defective Design, Workmanship and Material: Known as DE4 clause cover
Welding and Hotworks: No requirement to comply with strict Australian Standards

Construction policies are alternative ways to insure risks such as Display Homes whilst being used as a display home. Typically it can be difficult to obtain traditional home insurance for your display home, and we can assist in extending coverage to the home.

Business Insurance Specialists as an insurance broker can advocate for you in obtaining the most competitive terms for coverage from the market. We assist builders in obtaining both a cost competitive and comprehensive coverage. To obtain a Contract works insurance quotation for your Contract works project, complete our quote form or contact us by phone and we will contact you immediately within office hours to discuss.

If you would like to complement your Construction Insurance by adding commercial vehicle insurance for your company vehicles and other coverages such as Cyber and Contractual Liability please feel free to discuss this with us as well.