Start smart. Scale strong. Stay protected.​

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Construction & Contract Works Insurance

Building, renovating, or under construction? Protect the project.

A storm damages half-finished work. Materials are stolen from the site. Someone gets injured during construction. Contract Works Insurance covers your project from groundbreaking to handover, filling the gap between the start and finish that other policies often overlook.

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What could go wrong

(and why you need this)

Construction sites are chaotic until they’re finished. Storm damage to incomplete work, stolen materials, accidents during the build, standard property insurance doesn’t cover works in progress, and your builder’s insurance may not protect you as the owner. The gap between starting and finishing is where your investment is most vulnerable.

Scenario 1

The storm mid-build

You’re renovating a commercial premises. You’ve demolished walls, removed the roof sections, and exposed structural elements. A severe storm hits overnight. Water pours in, damaging new structural work, ruining materials, and setting the project back 6 weeks.

Damage: $85,000*. Restart costs: $40,000*. Your builder’s Public Liability won’t cover it—it’s not completed work. Your Property Insurance doesn’t cover works in progress.

What Contract Works covers

Damage to incomplete work, materials on site, temporary structures, restart costs, and loss of progress payments.

Scenario 2

The site theft

Thieves hit your construction site over the weekend. They steal $35,000* worth of materials: timber, steel, plumbing supplies, electrical cables, and tools.

Your builder’s insurance only covers their tools and equipment. You’re left paying to replace everything and delaying the project.

What Contract Works covers

Theft of materials stored on site, damage from break-ins, repairs to temporary fencing, and security costs to prevent further theft.

Scenario 3

The collapse during construction

You’re building a two-storey extension. During framing, temporary bracing fails, and part of the structure collapses.

No one’s injured, but the damage is extensive. Rebuild: $120,000*. Investigation into cause: $15,000*. Your builder claims it wasn’t their fault. Lawyers get involved.

What Contract Works covers

Damage to works under construction, investigation costs, legal fees to determine liability, and costs to rebuild or rectify, regardless of who is at fault.

Scenario 4

The accidental damage

Your contractor accidentally damages existing structures while working. A digger cracks your neighbour’s driveway. A dropped tool smashes through a window.

Water from construction work floods the property below. Claims total: $45,000*.

What Contract Works covers

Damage to existing structures, third-party property damage during construction, and legal defence if neighbours claim against the project.

What this actually covers

Commercial motor insurance

Construction & Contract Works Insurance (also called Contractors’ All Risks) protects building projects during construction:

Works under construction:

  • Buildings, structures, and extensions being built
  • Renovations and refurbishment projects
  • Demolition work
  • Civil works (driveways, retaining walls, landscaping)
  • Temporary structures and scaffolding

Materials and equipment:

  • Building materials stored on site
  • Plant and equipment (concrete mixers, scaffolding, generators)
  • Temporary site huts and facilities
  • Tools and equipment (contractor’s and owner’s)

Specific events covered:

  • Fire, storm, and flood damage
  • Theft and vandalism
  • Accidental damage during construction
  • Collapse or structural failure
  • Malicious damage
  • Impact (vehicles, falling objects)

Optional extras may include

  • Removal of debris and demolition costs
  • Professional fees (architects, engineers for redesign)
  • Expediting costs (fast-tracking repairs)
  • Existing structures damaged during works
  • Public liability during construction

What may not be covered

  • Defective design or workmanship (that’s Professional Indemnity)
  • Normal wear and tear
  • Mechanical or electrical breakdown
  • Maintenance costs
  • Work completed and handed over (that’s Property Insurance)

What could go wrong

(and why you need this)

Start smart

Pre-launch to first year

You need this immediately when:

  • You’re building new commercial premises
  • You’re renovating your business location
  • You’re fitting out a leased space with major works
  • You’re an owner-builder managing the project yourself
  • You’re extending your existing premises

Contract value:
The sum insured should equal the total contract value plus 15-20% to account for cost overruns, materials, and delays.

Typical coverage

$100,000-$500,000 for fitouts and small projects, $500,000-$5M for new builds.

Scale strong

Growing and hiring

Your cover needs to increase when:

  • Contract values exceed $500,000
  • You’re managing multiple concurrent projects
  • You’re building in high-risk locations (flood zones, bushfire areas)
  • Projects involve high-value materials or equipment
  • You’re using subcontractors (more complexity = more risk)

Project-specific or annual cover

Single big project? Project-specific policy. Multiple projects throughout the year? Annual policy is more cost-effective.

Stay protected

Established and optimising

Review every project:

  • Ensure the sum insured covers the full contract value plus contingencies
  • Add existing structure cover if working on occupied buildings
  • Include professional fees and expediting costs
  • Check public liability limits match project requirements
  • Extend policy if the project runs over time

Typical coverage

This is where things get custom, and you need to talk to the team at Pocket to evaluate your specific needs.

Common questions

Founders actually ask

Doesn't my builder's insurance cover this?

Maybe partially. Your builder’s Public Liability insurance covers damage they cause to third parties and liability for completed work.

Contract Works covers the project itself while under construction, materials, incomplete work, and site damage. If you’re the project owner (not the builder), you need your own Contract Works insurance.