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.

  • Liability to third parties for property damage or personal injury

    Up to the sum insured – either $5 million, $10 million or $20 million

  • Protection for build(s) throughout the construction period
  • 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.

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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.

Frequently Asked Questions

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.