Contractors face a number of risks when working on a construction or service project. Some of these risks can be mitigated by taking out insurance, but not all contractors are aware that they need to protect themselves before starting work. This article will help you understand what contract works insurance is and how it can protect you in the event of an accident.
What is Contract Works Insurance?
- Contract works insurance is an insurance policy that protects contractors and subcontractors against loss or damage to their property during the course of a project.
- Contractors can choose to take out contract works cover as part of a combined building and contents policy, or they may prefer to purchase it separately as an add-on.
- Contract Works Insurance (also known as Contractor’s All Risks Insurance) is only available through specialist brokers who understand the needs of those in the construction industry.
What does Contract Work Insurance Cover?
Contract Works insurance covers you for any losses or damages to the property of others, whether it’s a third party, a client or even an employee. It also covers you for any injury or death to your employees or contractors. It protects you from paying out of pocket for damage or injury caused by your employees and contractors on site, or damage caused by faulty materials that were supplied by you. Contract Works Insurance also covers you against liability claims, which means if someone was injured on site, it would be covered by your policy in case they sue you for compensation.
Contract Works Insurance will cover any damage or loss to your own property as well as that belonging to third parties while they are on site at the jobsite.
When should you take out Contract Work Insurance?
Contract Work Insurance can be used to cover a variety of potential risks related to your construction project. It’s important to think about your current circumstances and the types of projects you have in progress before deciding if it’s necessary for you, though.
- When starting a new project: If this is the first time you’re working with a client on a given type of job, or if it’s been awhile since your last project, then it might make sense for you to take out Contract Work Insurance. This way, if something goes wrong and there are problems with any aspect of the work (such as delayed payments), then at least some of those costs will be covered by insurance instead of coming directly out of pocket.
- When taking on larger jobs: If this is going to be an especially large-scale undertaking requiring more workers or materials than usual—such as when building multiple homes at once—then purchasing Contract Work Insurance could help ensure that everything gets done properly and on time without risking any delays due to lack of funds during construction process itself.)
- When you’re working with new clients: One of the most important reasons to get Contract Work Insurance is if you’re starting a new job with a client who has never worked with you before. By taking out this type of insurance, they’ll know that they are protected against any potential disputes or issues that may arise during the construction process without having to worry about paying upfront costs for such things as damages or delays.
What are the components of contract works insurance?
Contract works insurance provides cover for a number of potential risks, including:
- Comprehensive cover for damage to the premises and assets of your client.
- Liability cover in the event that you cause damage to someone else’s property or injure someone.
- Contents cover for any items on site that belong to your client (such as tools and equipment).
- Personal accident cover in case of injury to you or your employees. This will also include medical expenses and loss of income if they’re unable to work while they recover from an accident or illness.
- Public liability insurance, which protects against claims made by third parties who may have been injured due to actions taken by yourself or members of your staff during the course of carrying out a contract with a customer.
When and why do tradies need contract works insurance?
Contract Works Insurance is insurance that protects you when you are engaged to perform work on a building, land, or other structure. This could be an extension, a new house or even a garage.
If you’re an independent contractor and someone hires you to do some work for them, then this is also covered by contract works.
Contractors who are engaged to build something new may also need this kind of insurance if they create their own designs for the building and therefore risk losing their investment if it gets damaged during construction.
As you can see, Contract Works Insurance is a good investment for any business owner. It’s important to make sure that your business is covered in case something goes wrong on a construction site. If you have questions about what kind of insurance coverage would be best suited for your needs, contact us today!