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Contract works insurance

Help protect your project from the risks of a construction site – loss, damage, injuries and more.

What does contract works insurance cover?

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For peace of mind

Many things can go wrong on a construction site, and they are often out of your control. Contract works is designed specifically to keep your construction project ticking over.

Contract works insurance

You’re covered for loss or damage to property used for the purposes of your construction project including materials, equipment, supplies, temporary structures (eg formwork or site office), and documents and records. 

Public liability insurance

Covers you for injuries or property damage incurred by third-parties – even to a neighbouring property or a pedestrian on the sidewalk – and can include cover for your legal liability in repairing or replacing property, and even legal costs.

Limit of liability

The limit of liability required for your business or project can vary considerably. Speak to your broker to understand the best limit for you. 

Professional fees

You’re covered if you need to consult with specialists to help repair, replace or reinstate property – such as architects, surveyors or engineers.

Removal of debris

You’re covered for the removal of removal of debris and cleanup operations that may arise from a loss 

Price escalation

You’ve got some wiggle room if the value of your contracted works increases. It’s important to ensure your policy includes a reasonable limit for increases in contract values. 

Geographical options

Our brokers can help you source insurance policies that covers you for working in different locations – whether it’s across Australia, the Pacific or even across the globe. Chat to your broker because some policies are limited.

General exclusions

These are some examples of the general exclusions in professional indemnity insurance. Speak to your broker to find out more.

Workplace injuries

This can be tricky. Talk to your broker about finding the right insurance to ensure everyone is protected in case of an injury – employees, subcontractors and third parties.

Hazardous materials

The policy doesn’t cover incidents caused by some hazardous materials, such as radiation or asbestos. And some hazards, such as pollution, are usually only covered for sudden and unforeseen escape.

Wear and tear

Any loss or damage caused by general wear and tear such as gradual deterioration, rust or corrosion.

Defects and faults

Most policies will exclude cover for a defect or faulty workmanship, however, may provide cover for any damage that arises as a result.

Contractual liability

Not all public liability policies cover liabilities you assume under a contract. But you might be able to have this added for specific contracts – talk to your broker first.

Additional cover we can arrange

Products and services

Professional indemnity cover

Protect your business against claims of misleading advice, breach of duty and negligence with professional indemnity cover.

Learn More

Products and services

Management liability cover

Help protect your business – and your team – against management and operational risks with management liability cover.

Learn more

Products and services

Business vehicle cover

Need to travel from one job to another to keep your business running? Marsh can arrange business vehicle cover tailored to your needs.

Learn more

Why Marsh?

Why should you choose Marsh to arrange your insurance solutions?

Trusted by 130 associations

We are proud to be the endorsed insurance broker for more than 130 Australian industry groups and member associations, developing insurance solutions that help meet the risk and insurance needs of businesses across a variety of industries.

Local expertise

Our Australia-wide network of brokers have spent years at the coalface supporting business owners manage their unique risks in a fast-changing market. They keep ahead of the latest market insights both local and global and break down the jargon into your language.

Claims support

Handling an insurance claim can quickly become overwhelming, not least when your time is stretched to the limit keeping your business going in the backdrop. We help take the load off and manage, negotiate and settle claims with insurers on your behalf.

Single project cover

We can arrange cover for individual projects – on a case-by-case or ad hoc basis – when you need it most. Large-scale projects and those in natural catastrophe zones suit this form of cover well.

Large and complex projects

Our specialist brokers work with builders on projects of all sizes, types and complexities. Whatever your project, we can tailor your cover to your most relevant risk exposures.

Risk management plans

Our dedicated construction brokers are experts in your industry. We can offer you risk management and insurance advice that’s tailored to your needs – and put a risk management plan in place.

Why use a broker?

Choosing business insurance means navigating through products, coverages and policy terminology – with a sales pitch as your only guide. An experienced broker will spot your unique set of risks, match you to the right choice, and advocate for you on price.

Frequently asked questions

Contract works insurance can be purchased as a combined material damage/public liability policy, or separately. Talk to one of our brokers to work out what’s best for your project

It generally provides you with two main types of cover that are essential for construction projects:

  • Material damage for the cost of repairing or replacing materials, tools and equipment in the event of accidental damage, fire, theft, vandalism and natural disasters (eg floods)
  • Public liability insurance for accidental third-party property damage (eg damaging equipment or property) or bodily injury (eg a member of the public is injured on site).

Depending on the type of services you provide, you can also talk to your broker about purchasing a separate policy for things such as contract works cover for errors or omissions in the advice you provide, or residential builders warranty insurance, which provides protection for homeowners.

You may be contractually obligated and we highly recommend it – especially if your company offers building design advice or services.

As a builder, you are not protected by another party’s professional indemnity insurance such as the designer’s, engineer’s or other consultant’s policies.You may be contractually obligated and we highly recommend it – especially if your company offers building design advice or services.

As a builder, you are not protected by another party’s professional indemnity insurance such as the designer’s, engineer’s or other consultant’s policies.

Yes. We can arrange monthly instalments* with a premium funder, provided you meet certain criteria.

To arrange monthly payments, talk to one of our dedicated Marsh insurance brokers.

This can generally be included into your contract works policy, however, may not be automatic.

The extension would cover your tools and equipment for damage, loss or theft up to an agreed insured sum. If you’re applying for a new policy, be sure to tell your broker you’d like to add this on.

The answer will vary from insurer to insurer. Your policy may look different depending on who provides it – and inclusions may only apply to certain projects.

Generally speaking, a typical contract works policy can cover physical loss or damage to buildings, materials, temporary works and construction-related equipment. 

This might be due to:

  • Fire

  • Theft

  • Vandalism

  • Storm and flood damage

  • Natural catastrophes – earthquakes and cyclones.

Single project cover is a policy procured on a case-by-case or ad hoc basis. Some businesses need this under a contractual obligation.

Generally speaking, it’s most beneficial for projects that are at high risk of natural catastrophes. Large-scale construction projects, more complex in nature, also benefit greatly from this form of cover.

Contrary to single project cover, we can also arrange contract works insurance on an annual basis. The policy will include a set of parameters for projects that can be automatically covered. This form is called annual blanket cover. 

It’s most beneficial for builders and construction companies who complete multiple projects in a year. They might need cover that includes pre-agreed parameters and limits for many projects under a single policy.

Related insurance solutions

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Engineering insurance

For engineers, careful risk management is key. Let us arrange insurance tailored to you – so you can stay focused on innovation.

Subcontractor insurance

Subcontractors aren’t always covered by a builder’s insurance – even if the building site is. Let us arrange cover to help protect you.

Tradies insurance

Our experienced trades team can arrange comprehensive cover at competitive rates – and get you a certificate of currency on the same day.

Business interruption

A storm, cyber attack or machinery breakdown can grind your business to a halt. Arrange business interruption cover to keep things moving.

Cybersecurity insurance

Cyber attacks are becoming increasingly common. Help protect your small business with cyber insurance solutions arranged by Marsh.

Personal accident cover

With personal accident cover you can be sure your medical expenses are covered in the event of an on-the-job injury.

*Interest and additional fees are applicable. Terms and conditions apply.

LCPA 23/144 

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“Marsh”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.