Regardless of how many years of experience you have in the trade industry, the ins and outs of insurance policies can be confusing and frustrating. Unfortunately, being unclear about policies and insurance cover can leave you in a position where your livelihood is at risk.


What is Contract Works Insurance?

Many business owners feel that contract works cover is confusing. Primarily, a contract works insurance policy is a part of construction projects that are in the process of being built. So, if the building you are constructing is in any phase of the building process, contract works insurance is a type of cover you need.


Is your construction project covered by the right contract works insurance cover?
Is your construction project covered by the right contract works insurance cover?


How Do I Know if I Need This Type of Cover?

There are a number of circumstances that dictate if you need contract works cover. These include:

  • Being a member of a construction trade organisation
  • Hired to begin new construction
  • Working on renovation projects
  • Storing or transporting project materials


What Phases of the Build Need Cover?

Having an insurance cover for all phases of a build is critical if you are interested in proper protection. Some salespeople will focus on showing you a lower-priced policy without disclosing limitations of your cover.

Be sure to find out if a contract works policy covers you during all of the following stages of your project:

  • Tender Phase – The period of time before you begin building is known as the tender phase. While you may feel the temptation to avoid insuring your self while no construction is happening, potential issues can pop up at any time or any period of the project. Inclement weather, vandalism, fires, or flooding are just a few potential hazards you face, even if you have not pounded in the first steak.
  • Construction Phase – This is the busiest and most potentially dangerous parts of the project. Avoid the false sense of security that comes from being accident-free for periods of time. You already know the hazards of a construction site. Make sure your insurance is adequate.
  • Post-completion Phase – Once you feel the build is complete and you have no more work to finalise, the site is still your responsibility. Anything that goes wrong is on your shoulders until the owner gives their approval, or another insurance policy commences. As with the other phases, your contract works cover is essential at this time.

Think about contract works insurance cover in the same way you think of auto insurance. Do you purchase a car insurance policy that will only cover your car while you are driving? Of course not, that would be incomplete coverage at best. You are buying your cover to be ready for all types of events, such as theft, vandalism, and natural disasters.

The same school of thought applies to your contract works insurance and the various phases of your building project.


What Instances Does Contract Works Insurance Cover?

While every policy may include particular points that apply to specific situations, typical contract works policies will protect against:

  • The cost incurred by unforeseen loss or damage to building works including the material modification of a structure, the extension of an existing building, erecting a structure, and other specified services
  • Business interruption
  • Risks associated with moving and operating equipment and tools
  • Public Liability (in some cases, please consult with your insurance expert)
  • Theft of or vandalism to on-site materials
  • Third-party damage
  • Damage due to incidents including fire, flood, weather-related occurrences, and other catastrophic events


A flooded construction site
This type of cover will protect you for damage caused by a flooded construction site.


Are There Different Types of Contract Works Policies?

Generally speaking, you can get one of two types of contract works insurance policies:

  1. Annual Policy – If you opt for a yearly contract works policy, you will pay for cover that will protect all of your building projects for a calendar year. Some tradies prefer this type of cover because it is a one and done undertaking and they have peace of mind knowing all their job sites have protection throughout the phases of construction.
  2. Single Project Policy – As the name suggests, the individual project cover protects a specific job. Tradies who have smaller businesses tend to prefer this form of a contract works insurance policy because they pay only for the protection they will use. Typically, there is a significantly lower out-of-pocket cost for single project policies. However, the cover offered is still appropriate for a particular job.


Are You Covered?

Contract works insurance can save you money, time, and effort should the unexpected occur. It would be best if you planned on speaking with one of the insurance experts at Tradies 365 soon. We have the right insurance cover at the right price.


Please Note: The contents of this blog post are for informational purposes only. This blog post does not constitute professional insurance advice and should not replace a consultation with an insurance expert.