Contract Works Insurance

Protect your construction projects from start to finish.

What Is Contract Works Insurance?

Quick Summary

Contract Works Insurance covers the physical works under construction; the structure, materials, and work in progress against loss or damage from fire, storm, theft, and accidental damage, from the start of the project until practical completion.

Protects projects during construction

Covers damage, theft, or delays

Essential for builders and contractors

Who Needs This?

Licensed builders and head contractors
Almost always responsible for arranging cover for the full project, often a contractual and licensing requirement
Subcontractors
May be covered under a head contractor's policy, but this should never be assumed without a certificate of currency and written confirmation your scope is included
Owner builders
Need cover in their own name; a builder engaged for part of the work does not automatically protect the owner for the rest
Homeowners undertaking major renovations
Standard home and contents policies typically exclude or restrict cover once significant renovation work begins

What's Included?

Storm, weather, and flood damage
Fire damage, including risks from temporary power and site activity
Theft of materials, fixtures, and stored equipment
Vandalism and malicious damage
Accidental damage caused by workers or subcontractors
Structural collapse during construction
Existing structures (for renovations/extensions, where scheduled)
Materials in transit and materials stored on site
Debris removal following an insured event

What's Not Covered?

Defective or faulty workmanship (though resultant damage to other parts of the structure may be covered)
Normal wear and tear
Consequential loss: delays, penalties, or financing costs from a stalled project
Intentional damage by the insured or their employees
Mechanical or electrical breakdown of plant and equipment
Employee injury (covered separately under Workers Compensation)

Single Project vs Annual Cover

Single project policies suit one-off builds, renovations, owner builders, or contractors who don't run enough volume to justify an annual policy. Sum insured is based on full contract value.
Annual policies suit builders and contractors with an ongoing pipeline of work, covering all projects up to a set per-project limit. Generally more cost-effective than arranging a new policy each time.

Is It Compulsory in Queensland?
Not mandated by law in the same way Public Liability is for licensing, but effectively required in practice. QBCC licensing conditions expect appropriate insurance, most financiers require it as a condition of a construction loan, and head contractors typically require proof of cover from subcontractors before granting site access.