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.
What could go wrong
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.
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.
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.
The collapse during construction
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 this actually covers
Construction & Contract Works 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)
When you need this
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.
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)
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
Common questions
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.
I'm an owner-builder, do I need this?
Absolutely. As an owner-builder, you're responsible for everything. You don't have a head contractor's insurance to fall back on. Contract Works insurance is essential to protect your investment during the build.
What if the project runs over time?
Your policy has an end date. If construction runs longer, you must extend the policy (usually for an additional premium). If you don't extend and something happens after expiry, you're not covered. Always notify your insurer of delays.
Does this cover damage I cause to neighbouring properties?
Yes, most Contract Works policies include third-party liability cover for damage to neighbouring property during construction. Did your digger damage their driveway? Covered. Your scaffolding falls on their car? Covered.
What's the difference between Contract Works and Public Liability?
Contract Works covers your project (the building under construction). Public Liability covers injury to people and damage to property caused by your business operations. You need both during construction—they cover different things.
Can I claim if my contractor abandons the project?
No. Contract Works covers physical damage to the project, not contractual disputes, payment issues, or contractor performance. For contractor default, you need separate contract default insurance (rare for small projects).