What is contract works insurance

When you’re working on a construction site, plenty of things can go wrong. Damage or loss to a building could cost you time, money and even your reputation. Meanwhile, an onsite injury can result in considerable pain, stress and financial loss.

Who should consider it?

Contract works insurance is recommended for small, medium and large commercial, industrial and domestic builders, sub-contractors and owner-builders. Most owner builders take out contract works insurance for a specific contract, while professional builders generally choose an annual policy that covers multiple contracts.


Did you know?

The construction industry had the fourth highest rate of serious claims

in 2012-13.

(Safe Work Australia, Construction Industry Profile, 2015)


According to the NSW Police, theft from housing construction sites accounts for 1% of the cost of a new home.

(NSW Police Force, Preventing Building Site Theft, 2018)


WA building industry’s anti-crime group, Busted, states that each year, building site theft costs the sector almost $25 million.

(ABC, ‘Regional residents urge to keep watch for building site theft’, 2014)

What can it cover?

Contract works insurance can cover the building which is under construction, whether it’s a kit home, straw bale or mud brick home, multistory apartment or commercial buildings. It can also cover the equipment used in construction, as well as public liability risk.

What usually isn’t covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:

  • Loss after work has ceased for more than the number of days specified in the policy.
  • Consequential loss.
  • Cost of rectifying or correcting defective workmanship.

Work underground or in water unless specifically agreed by the insurer.