Contract Works Insurance
Contract Works (Construction Works) Insurance
Critical coverage for builders, tradies and subcontractors on site and – with the right package – off site.
Key highlights and policy benefits
- Contract Works insurance covers the physical works being built
- Can be packaged with Public Liability insurance
- Designed to protect builders, contractors, trades, and subcontractors against loss, damage, and liability risks during construction projects
- Policies can be arranged to suit different contract types, project sizes, and construction activities.
- Cover limits can be set to reflect the full contract value and may allow for variations and escalation.
- Contract Works and Liability insurance can protect against damage to the works and third-party liability claims arising from your construction activities.
- Broader business operations, including on-site and off-site exposures such as worksites, completed works, workshops, offices, and property owner or lessee responsibilities can also be covered.
Be covered on your next project
Importance of choosing the right policy
Not all Contract Works insurance policies are the same. While many policies include material damage and liability cover when packaged together, the scope of cover, sub-limits, exclusions, and conditions can vary significantly between insurers.
Builders should not rely on a “standard” policy without understanding what is actually covered. The right insurance policy should align with your construction contracts, lender requirements, and the real risks faced on site.
Depending on the scope of works, builders and trades may also need to consider Professional Indemnity insurance, particularly where design input, advice, specifications, or project management services are provided, as these risks are not covered under standard Contract Works or Public Liability insurance policies.
Using a construction-specific insurance broker is critical. An experienced broker understands how different policies respond, where gaps can exist, and how to structure cover to suit builders, subcontractors, and trade businesses.
Importance of Contract Works Insurance
Contract Works insurance plays a vital role in protecting construction projects and supporting good risk management practices.
Most building contracts require builders to hold Contract Works insurance for the full value of the works, often including Liability insurance. Having the right cover in place shows principals, developers, and clients that you are properly insured, risk-aware, and contract-ready — which can help strengthen tenders, avoid delays in contract sign-off, and improve your chances of winning work.
Lenders and financiers typically require evidence of Contract Works insurance before releasing funds. This insurance protects their financial interest in the project by ensuring damage to the works can be repaired or reinstated following an insured event.
Construction sites face constant risks including fire, storm, theft, vandalism, water damage, and accidental damage. There is also ongoing exposure to third party liability, where someone is injured or property is damaged due to construction activities. Contract Works insurance, combined with Liability insurance, is a key part of managing these risks.
Why Choose Be Covered for Contract Works Insurance?
As your trusted business partner, Be Covered have the experience and know-how to tailor an insurance program to fit your individual needs. We use our specialist industry knowledge to tailor your Contract Works policy around your needs. The policy can be tailored to include risks such as:
- Accidental loss and/or damage to materials and works on site
- Theft and vandalism
- Liability to third parties for property damage or personal injury
- Materials stored onsite / offsite
- Products Liability for your products after they are completed
- Difference in conditions liability to fill gaps in builder contracts
Who Needs Contract
Works Insurance?
Most people recognise the importance of builders getting Contract Works to cover what’s being built, but many construction businesses can benefit from these policies. These include:
- Tradies who work directly for their customers
- Property developers
- Construction managers
- Owner builders
- Subcontractors to meet head contract requirements or fill in gaps in risk allocation
Types of Contract Works Insurance
There are two main types of Contract Works insurance policies, depending on how a construction business operates.
Single Project policy
A Single Project Contract Works policy is arranged for one specific construction contract. It covers the works and associated liability for the duration of that project only. This option is often suitable for one-off builds or high-value projects. Cover usually expires at practical completion or handover.
Annual Turnover policy
An Annual Turnover Contract Works policy provides ongoing cover for multiple projects commenced during the policy period. This option is commonly used by builders with regular construction work and is often packaged with Annual Public Liability insurance. It reduces administration and helps ensure continuous cover across all jobs.
Liability Cover as Part of Contract Works Insurance
Most builders choose to package Contract Works insurance with Public Liability insurance under one combined policy. This provides protection not only for damage to the works, but also for third party liability claims arising from construction activities.
Liability cover may respond to claims involving personal injury or property damage suffered by third parties, such as site visitors, neighbouring properties, or members of the public. Some construction-specific policies also offer broader liability extensions and fewer exclusions compared to standard market options.
Because liability cover can vary significantly between policies, it is important to review limits, exclusions, and extensions carefully. This is where using an insurance broker who specialises in construction insurance is particularly important.
Why Choose Be Covered Insurance Brokers
Be Covered Insurance Brokers specialise in insurance for builders, trades, and construction businesses. We understand construction contracts, risk management, and how Contract Works and Liability insurance should work together.
We are backed by the Steadfast Group, giving us access to a wide range of insurers and construction-specific insurance policies. With years of experience, we help builders arrange appropriate cover reflecting your contractual requirements, avoid gaps, and navigate policy wording differences.
We are upfront about fees and take the time to explain how premiums, policy costs, and broker fees are structured, so builders understand exactly what they are paying for and why.
We also support fast and efficient claims processes, acting on your behalf to help claims progress smoothly and with minimal disruption to your business.
We Have the Building
Industry Covered
Specialist Construction & Building
Insurance Broker
Contract Works Insurance FAQs
What is Contract Works insurance?
Contract Works insurance covers physical loss or damage to a construction project during the building process, including materials on site. It protects against unexpected events such as fire, theft, storm damage, or vandalism while work is underway. The policy can also be extended to include additional cover options such as Tools, Existing Structures, Principal-Supplied Materials, and Public Liability.
Who needs Contract Works insurance?
Anyone responsible for works during construction should consider Contract Works insurance. This includes builders, contractors, subcontractors, and even owner-builders. Whether you're managing the entire project or just your portion of the works and materials, this cover helps protect your responsibilities on site.
If I’m a subcontractor to the head contractor, do I need Contract Works insurance?
Potentially yes, if you're supplying materials or responsible for any part of the build, you may need your own cover. The head contractor’s policy might not cover your work—or their excess could be much higher than you're comfortable with. Always check to ensure you're protected if damage occurs to your works or theft of your materials.
Can it include public liability?
In most cases, yes. Contract Works insurance is often bundled with your Public and Products Liability policy to provide cover for physical loss or damage to your work during construction, along with protection against third-party injury or property damage.
When does my cover commence?
Cover usually commences from the date shown on your insurance policy. This may be the start of construction or another agreed date. It is important that cover is in place before any works begin.
When will my Contract Works insurance expire?
Single project policies generally expire at practical completion or handover. Annual turnover policies expire at the end of the policy period and must be renewed to maintain continuous cover.
Does my Contract Works insurance cover tools and plant?
Some Contract Works insurance policies can include cover for tools, plant, and equipment, but this is not automatic. Separate tools insurance or specific policy extensions may be required depending on the policy wording.
Why subcontractors may still need their own insurance?
Even when a head contractor has Contract Works insurance in place, subcontractors may still need their own insurance policies. Head contractor policies are typically arranged to protect the main contract and may not fully extend to all subcontractor activities, particularly for liability claims arising from a subcontractor’s own work or business operations.
Subcontractors are often required under contract to hold their own Public Liability insurance, and in some cases Professional Indemnity insurance, depending on their trade and responsibilities. Having separate cover in place can help protect subcontractors against third party liability claims, reduce disputes if a claim occurs, and ensure they meet contractual and principal requirements.
Be Covered, we take the time to get to know your business, get the cover that’s right for you and, if something does go wrong, Be Covered are on your side with the knowledge and experience to handle even the toughest claims – that’s our difference.