What is contract works insurance?
Designed for builders, tradespeople, and contractors, contract works cover helps protect the work you’re responsible for during construction or renovation projects. Whether you’re building from scratch or carrying out repairs, this insurance ensures you won’t be left out of pocket if things don’t go to plan.
Contract works insurance is a specialist policy that protects ongoing work on a construction site. It covers the cost of repairing or redoing work if it’s damaged by events such as fire, theft, vandalism, or extreme weather.
For example, if a partially built extension is damaged by a storm, your contract works cover can cover the cost of restoring it to its previous state so you can complete the project without financial setbacks.
What does contract works insurance cover?
The scope of contract works insurance depends on the policy, but most cover the following:
Damage to work in progress: Protects the construction or renovation work you’ve completed so far, ensuring you can redo the work if it’s damaged by fire, flood, theft, or other unexpected events.
On-site materials: Covers building materials stored on-site before they’ve been used in the project.
Temporary structures: Provides protection for temporary works, such as scaffolding or site cabins, used during the project.
Subcontractors’ work: Some policies include work carried out by subcontractors under your supervision, depending on your specific arrangements.
Do I need contract works insurance?
This type of insurance is typically purchased by:
- Builders
- Electricians
- Bricklayers
- Plasterers
- Carpenters
- Tilers
Whether you need contract works insurance depends on the type of projects you undertake. This policy is essential if:
- You work on large-scale construction or renovation projects.
- You’re responsible for unfinished work until it’s handed over to the client.
- You’re contractually required to have it.
- If you’re a contractor managing projects, contract works insurance can be invaluable for protecting your business from unexpected financial losses. Even for smaller projects, having the right cover can ensure you’re not left out of pocket if something goes wrong.
How much contract works insurance do I need?
The amount of contract works insurance you need will depend on the size and value of the projects you undertake. Policies typically cover the cost of restoring a project to its previous state, so you’ll need to ensure the sum insured matches the highest value of work you’re likely to carry out at any one time.
It’s also a good idea to get a contract works insurance quote that reflects any materials or temporary structures involved in your work. Consulting with an insurance provider can help you determine the right level of cover for your business.
