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Insurance Details
Contract Works Insurance (also known as Construction Insurance or Contract Works & Liability Insurance) is designed to protect construction projects against physical loss or damage during the building phase.
It provides cover for works in progress, materials, plant, and equipment, as well as associated legal liabilities arising during construction activities. This insurance helps principals, builders, and contractors manage financial risk from unforeseen events such as fire, storm, theft, or accidental damage.
Whether for residential, commercial, or civil construction projects, Contract Works Insurance is a fundamental protection from site commencement through to project completion.
Cover Sections / Benefits Covered
Q&A – Common Questions
Contract Works Insurance is usually arranged by the principal contractor or head contractor.
However, project owners or developers may also arrange cover depending on contractual obligations and risk allocation under the building contract.
While coverage varies by insurer, common exclusions may include:
• Defective workmanship or materials (the cost to rectify the defect itself)
• Normal wear and tear
• Mechanical or electrical breakdown (unless resulting in insured damage)
• Delays not caused by insured physical damage
Resultant damage caused by defective work may still be covered, subject to policy terms.
Contract Works policies typically include Public Liability cover for construction-related activities.
However, limits, exclusions, and insured parties should be carefully reviewed to ensure contractual compliance.