Contract works insurance
.... now you're covered
What is contract works insurance?
Contract works insurance — also known as construction works insurance, contractor's all risks or, for installation-heavy projects, erection all risks — covers physical loss or damage to a construction project while it's underway. Cover typically responds to sudden and accidental events such as fire, theft, storm, hail, cyclone, flood or malicious damage, and can extend to public and products liability, protecting contractors against certain legal claims arising from the project.
Most building contracts require this cover to be in place before work starts, and lenders will often ask for proof of it before releasing progress payments. With the right policy, a single incident on site doesn't have to mean delays or costs coming out of your pocket.
What's covered by contract works insurance
Cover for contract works varies by insurer and project type, so not every item below applies to every policy. Your broker can confirm what applies to a specific policy and what else can be added to your contract works cover.
Loss or damage to the building, materials and equipment on-site or in transit between sites.
Cover for contractor tools and machinery used on the project.
Some policies extend cover for a period after practical completion, including the defects liability period.
Cover for legal fees, settlements and court costs in defending certain claims.
Cover for the cost of clearing debris and demolition made necessary by an insured event.
Cover for legal liability to third parties for injury or property damage arising from the project, usually packaged alongside material damage cover in a single contract works policy.
Cover can extend to the testing and commissioning phase, when plant and installed systems are first put under load and the risk of damage is at its highest.
Why you might need contract works insurance
Contract works policy types
Cover can be structured to suit how you work. A single project policy covers a construction project from start to completion, while an annual turnover policy suits contractors and fabricators managing multiple projects, covering qualifying work as it's undertaken within the policy period. For those building their own home under an owner-builder permit, an owner-builder policy is tailored to that arrangement.
Contract work key considerations
Getting the sum insured right matters, since it sets the maximum payout for a covered loss, and policies vary in what they exclude, so it's worth checking the detail before work starts rather than after a loss occurs. This is also where a broker earns their keep — working through the fine print to understand your contractual obligations and confirming the cover is comprehensive for the way your business actually works.
Protecting the project, not just the paperwork
Every construction project carries a level of risk that's hard to plan around — a fire, a storm or a moment of theft can undo months of work regardless of how careful the build is. Contract works insurance exists to absorb that risk, covering the physical work itself alongside the legal liabilities that can follow an incident on site, so a single setback doesn't put the whole project in jeopardy.
The right policy looks different for every build. A one-off residential job, a multi-project pipeline and an owner-builder permit each call for a different structure, and getting the sum insured and exclusions right is what makes the difference between a policy that pays out cleanly and one that leaves gaps. That's where working through the details with a broker pays off, matching the cover to the project rather than the other way around.
Let's get you covered
