Construction and contract works insurance
Contract works insurance protects the project you are building while it is under construction. If the works are damaged by an insured event such as fire, storm, theft or malicious damage, it can help pay to repair or replace the work and materials so the job keeps moving.
We arrange it for builders, renovators and contractors across Australia, from single residential jobs to annual policies covering multiple projects. We work by phone and email, so it does not matter which state or territory your projects are in.
What contract works insurance can cover
Every policy is different, but contract works insurance (sometimes called contractors all risks) can include:
Material damage to the works
The building or structure under construction, including temporary works.
Materials on site
Materials delivered to site and waiting to be installed, and in some cases materials in transit or stored off site.
Existing structures
The existing building you are renovating or extending, where this cover is selected.
Plant, tools and equipment
Owned or hired plant used on the project, if added to the policy.
Debris removal and professional fees
Costs to clean up after a loss and fees to redesign or re-certify damaged work, up to the policy limits.
Public and products liability
Many construction policies combine contract works with liability cover in one package.
Annual policy or single project?
Annual contract works policy: suits builders and contractors who run several jobs a year. It covers all eligible projects started during the policy period, up to a maximum contract value per project, without arranging a new policy each time. You declare your turnover, and the policy is adjusted at renewal.
Single project policy: covers one job from start to completion. It is often used for larger or more complex projects outside an annual policy's limits, or by owner-builders and developers taking on a one-off build.
Common exclusions
Contract works policies commonly exclude wear and tear, and losses after the works are handed over. While faulty design or workmanship itself is generally excluded, resulting damage to other parts of the works may be covered. We take you through the exclusions that matter for your projects.
What your contract may require
Head contracts and building contracts often set out insurance requirements. Before you sign, check whether the contract asks for:
- Contract works cover for the full contract value, sometimes plus a margin for escalation and fees
- The principal, owner or financier to be noted on the policy as an interested party
- Cover in joint names
- A minimum public liability limit
- Cover to continue through a defects liability or maintenance period
Contract works and home warranty insurance
Contract works insurance is not the same as home warranty insurance (known by different names in different states, such as domestic building insurance). Home warranty protects the home owner if the builder dies, disappears or becomes insolvent and cannot finish the job or fix defects. Each state and territory sets its own rules on when residential builders need it, usually above a set contract value, and it is arranged separately. Many residential builders need both.
If you are unsure, check the current requirements with the building regulator or home warranty scheme where the work is done, and we can talk you through how the covers work together. Send us the insurance clauses from your contract and we will check whether your policy meets them.
How we work with you
Independent broking, Australia-wide, with one point of contact.
- We learn how your business runs: what you do, turnover, staff, premises and contracts.
- We compare cover across a range of insurers and explain the key inclusions, exclusions and limits in plain English.
- We help with certificates of currency for landlords, leases and contracts.
- We support you at renewal, when your business changes, and through the claims process.
Frequently asked questions
Is contract works insurance compulsory?
It is not required by law for every project, but most building contracts require it, and financiers often insist on it. Without it, you could be paying to rebuild damaged work yourself.
What's the difference between contract works and public liability?
Contract works covers damage to the project itself. Public liability covers your legal liability if your work injures someone or damages someone else's property. Many builders package both together.
Does contract works insurance cover theft of materials from site?
Theft of materials and works on site can be covered, usually subject to security conditions and an excess. Check the policy wording for conditions such as fencing or locked storage.
Does it cover my tools?
Tools and plant aren't always included automatically. They can often be added to a contract works policy or insured separately under a tools or plant policy.
Can owner-builders get contract works insurance?
Yes. Owner-builders can usually arrange single project cover for their build. Insurers will want to know about your experience and who's doing the work.
When does cover end?
Cover usually ends at practical completion, handover or when the owner occupies the building, whichever comes first, unless the policy includes a defects or maintenance period extension.
Does a principal contractor's policy cover my subcontractors?
Sometimes, but not always. Many principals require subcontractors to hold their own public liability, and the principal's contract works policy may only cover certain parties. Check your contract and ask us to review it.
What is a principal's interest clause?
It is a clause that extends cover under your policy to protect the principal (often the client or head contractor) for liability arising from your work. Many construction contracts require it.
What happens if a project runs over time?
Single-project policies have a set period. If the job runs late, you usually need to ask the insurer to extend cover before it ends, which may cost an additional premium.
Is home building compensation (home warranty) the same as contract works?
No. Home building compensation protects homeowners if a builder dies, disappears or becomes insolvent, and is required for many residential jobs. Contract works covers the work itself during construction. We can help you understand both.
Can you cover plant and machinery on site?
Yes. Owned or hired plant such as excavators, scaffolding and site sheds can be covered under a contract works or separate plant policy, depending on the value and use.
What details do insurers need for a construction quote?
Typically your annual turnover or project value, the type of work, your largest single project, claims history and any contract requirements such as limits and named parties.
Talk to us about your cover
Send us your contract insurance clauses or project details and we will talk through your options. Call us, email us or request a callback. We service businesses Australia-wide.
Get in touch
- Phone
- (03) 9078 6473
- info@mminsure.com.au
- Hours
- 9:00am to 5:30pm, Monday to Friday
Find out more
Every business is different - which means you need an insurance solution that is tailored for you. For more information, contact us today.
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