Contract Works Insurance

In construction, contracts, project values, subcontractors, design responsibilities and client requirements can change from one job to the next. Your insurance needs to keep up.

We take the time to understand your business, contracts and projects, then structure insurance around the risks you face. From contract reviews and insurance placement to claims support and ongoing risk advice, we help you understand what’s covered, where gaps may exist and what you can do about them.

What is Contract Works Insurance?

Contract Works Insurance covers physical loss or damage to an insured project during construction. Depending on the policy, this can include the works themselves, materials intended for the project and other property specifically included in the cover.

The right cover depends on the job. A commercial build, civil project and major fit-out will not all carry the same risks or contractual requirements, so getting the cover right before work begins can help prevent unwelcome surprises if something goes wrong.

Single-project or annual Contract Works Insurance?

There are different ways to arrange Contract Works Insurance, the right approach depends on the project, the contract and who is responsible for the cover.

• Single-project cover: This may suit a particular contract, development or one-off construction project.
• Annual Contract Works cover: This may suit builders and contractors managing several projects throughout the year. Each policy will have limits around factors such as project value, duration and the type of work covered.

In some cases, a contractor may maintain an annual program but still require separate project-specific insurance for a larger or unusual project that falls outside the annual policy parameters.

We’ll help you work out which option best suits the project before work begins.

Who should consider Contract Works Insurance?

Contract Works Insurance is commonly considered by:

Commercial Builders | Civil Contractors | Design and Construct Contractors | Principal Contractors | Property Developers | Joint Ventures and Project Entities | Fit-out and Refurbishment Contractors | Businesses Requiring Insurance for a Specific Contract or One-off Project

The appropriate structure will depend on the project, contractual requirements and the parties involved.

What can Contract Works Insurance cover?

Every project and policy is different. Depending on the cover arranged, Contract Works Insurance may include:

Material damage and contract works

• Works under construction
• Materials intended for incorporation into the works
• Temporary works
• Off-site materials, where covered
• Transit, where covered
• Existing structures or property, where specifically insured
• Debris removal and certain additional costs, depending on the policy.

Public liability

• Certain third-party personal injury and property damage liabilities arising from construction activities may be covered where liability insurance forms part of the arrangement.

Delay and consequential exposures

• Some financial losses caused by a project delay following insured damage may be covered if this is arranged in advance. It isn’t automatically included in every Contract Works policy.

What we consider when arranging Contract Works Insurance

There’s more to arranging Contract Works Insurance than entering a project value and generating a quote.

To understand the job properly, we may look at:

• Total contract or project value
• Construction period, extensions and defects liability or maintenance period
• Testing and commissioning
• Existing structures and principal-supplied materials
• Off-site storage, transit and temporary works
• Construction methodology, including excavation, piling, shoring or structural alterations
• Exposure to flood, storm and other natural hazards
• Design responsibility
• Parties required to be insured or noted under the policy
• Contractual insurance requirements

How GSA can help

Contract Works Insurance is rarely aone-size-fits-all solution. GSA works with you to:

Review the insurance requirements in the contract

Identify risks specific to the project

Make it easier to gather the information insurers need

Structure cover around the job and your obligations

Support you through a claim if something goes wrong.

We make the complicated parts easier, so you can focus on delivering the project.

Insurance that considers the contract

Before we arrange cover, we look closely at what the contract requires. That includes who must arrange the insurance, who needs to be protected, how long the cover must remain in place and whether the proposed insurance meets the project’s obligations.

You may also need legal advice on how particular contract terms should be interpreted. Our role is to help you understand and address the insurance implications.

Planning a project? Let’s talk about the cover

Whether you need cover for one project or an annual Contract Works program, send us the contract and project details. We’ll help you understand the insurance requirements, identify any potential issues and gather the information insurers need.