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What is Contract Works (Construction Works) Insurance?
Contract Works or Construction Works Insurance, which includes cover for Material Damage and Legal Liability, covers builders, tradies and subcontractors against accidental physical loss or damage to their build project during the construction period. The policy covers the build project from risks such as fire, theft, malicious damage, storm, hail, cyclone, flood and accidental damage.
Key Highlights
Contract Works Insurance (also known as Construction Works) provides cover for a number of risks, some of which are outside of a builder’s control. As well as providing cover for losses to the build project caused by insured events, it can also include public and products liability cover.
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Liability to third parties for property damage or personal injury
Up to the sum insured – either $5 million, $10 million or $20 million
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Protection for build(s) throughout the construction period
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Legal fees, settlements and court costs incurred defending claims covered by the policy
Why might I need Contract Works (Construction Works) Insurance?
Contractual Responsibility
Builders typically have a contractual responsibility to insure their construction works during the construction period. Plus, financiers of construction projects usually require proof of construction insurance before they will make progress payments.
A tailored insurance solution
HIA Insurance Services understands the unique risk profile of workers in the residential building sector, which means it has factored a broad range of inclusions into its Contract Works (Construction Works) Insurance policies. Contract Works policies issued through HIA are underwritten by QBE Insurance.
Contract Works (Construction Works) Platinum
Provides ultimate flexibility
Display Homes Cover for Annual Turnover Policies
Cover for Existing Structures
Suitable for both residential and commercial builders
Available as a Single Project Policy or Annual Turnover Policy.
Speak to an expertMaterial Damage
Protection for your build/s throughout the entire contract period of construction.
- Up to the total sum insured
Existing Structures Cover
No need for further cover extensions to protect property on top of what’s insured in the contracted works.
- Subject to the sub-limits specified in the coverage summary
Display Homes Cover
Showcase your work and secure your next project with the peace of mind you need knowing you're covered whilst onsite.- Up to a total limit of $1,500,000 for the policy period
Search & Locate Cause of Damage/Defects
Prevents you from having to entirely pay for discovering what’s causing something to not work properly.- Up to a limit of $50,000
Legal Liability Claims
Cover for legal fees, settlements and court costs you incur from defending certain claims.- Up to the limit of your liability cover + reasonable legal expenses
Public Liability & Product Liability
Covers you for your legal liabilities in relation to the contracted works during and after the job is complete- Up to the sum insured. The choice is yours:
- $5M
- $10M
- $20M
Access to Remove & Restore Cover
Saves you from having to pay for the removal of part of the works to repair and continue with the build.- Up to a limit of $25,000
Mitigation Costs
Stops you from being entirely out of pocket when it comes to preventing covered damage to insured property for your build/s.- Up to 5% of the contract value
Subcontractor Negligence
The peace of mind of knowing your interests are protected for your subcontractors work for which you could be vicariously liable.- Up to the liability cover limit you choose
Professional Fees
Minimises the bill your business would have to foot if specialists needed to be brought in during a build.- Up to 10% of the contract value
Automatic Contract Value Increase/Escalation
Cover for if or when the cost goal posts shift and the contracted works is more expensive than initially insured for.- Up to 15% of the contract value as specified in the schedule
Removal of Debris
Saves you from having to pay for the removal of debris if a covered event happens to get you back on-site fast.- Up to 10% of the contract value
Business Premises
Cover for if accidents happen at your business premises such as your office or workshop.- Up to the liability cover limit you choose
Materials in Storage
Allows you to concentrate on the job without worrying if your off-site resources are safe until needed.- Up to the limit of the contract value
Materials in Transit
Cover for resources stored off-site that get damaged on the way to your build.- Up to the limit of the contract value
Tools of Trade
Cover for tools used on-site.- Available as an optinal extra
Related Products
Home Warranty Insurance
Mandatory insurance (with some exceptions) for residential building projects over a certain value.
Find out more
Why HIA Insurance Services?
HIA Insurance Services (HIAIS) is a joint venture between the Housing Industry Association (HIA) and Aon. The partnership means HIAIS can combine the construction industry expertise of the HIA with the risk and insurance knowledge of Aon to provide products and advice that are specific to the residential construction industry.
We understand the unique risk exposures of Australian builders, tradies and subcontractors, which means we can offer you policies that are tailored for risks commonly found in the construction sector, as well as fast and efficient claims processes.
A Single Project policy covers you for one insured work site and does not include product liability cover.
An Annual Turnover policy covers all your projects for a 12-month period. Product liability is included in Annual Turnover cover and can provide continuity of cover on works completed during the policy period. It also ensures you don't forget to insure a project, leaving your business open to risk. Note that if the cover lapses, your right to make a claim ceases.
A Single Project policy protects you from the date you commence work at the specific job site that has been insured.
In the case of an Annual Turnover policy, you are covered for a 12-month policy period – the specific dates will be listed on your policy documents. The policy is intended to cover operations across multiple sites and locations where your construction works are conducted. For example: quoting for a job, or working on multiple construction sites over the policy period.
Cover for tools and plant can be added to your Contract Works (Construction Works) Insurance policy for an additional premium.
For single project cover, Contract Works (Construction Works) Insurance cover usually expires at practical completion – or at the expiration of the maximum construction period provided under your policy or at expiry date of policy.
No, display homes are not automatically covered. Display homes and their contents are covered by the Platinum policy with an insured value up to $500,000 for buildings and $50,000 for contents (subject to an overall policy limit of $1.5 million during the policy period). Higher limits may be available and extra premiums will apply.
1Subject to the full terms, conditions and limits of the applicable policy wording.
Construction Works Insurance for the Building and Construction Industry is issued by QBE Insurance (Australia) Ltd (ABN 78 003 191 035, AFSL 239545) If you purchase this insurance, HIAIS will receive a commission that is a percentage of the premium. Further information can be found in HIAIS’ FSG or provided upon request. The information contained on this webpage is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a product is right for you, please consider the relevant Product Disclosure Statement (if applicable) and full policy terms and conditions available from HIAIS on request. All representations in this communication in relation to the insurance products HIAIS arrange are subject to the full terms and conditions of the relevant policy. Please contact HIAIS if you have any queries.