Contract Works Insurance
Damage or loss to a building can cost you money, time and even your reputation. An onsite injury can result in considerable pain, stress and financial loss. With the right amount and type of contract works insurance part of your business toolkit, you can get on with your job with less stress and worry.
What is contract works insurance?
There are plenty of things that can go wrong when you are working on a construction site. Damage or loss to a building can cost you money, time and even your reputation. An onsite injury can result in considerable pain, stress and financial loss.
With the right amount and type of contract works insurance part of your business toolkit, you can get on with your job with less stress and worry.
Who should consider contract works insurance?
Contract works insurance is recommended for small, medium and large commercial, industrial and domestic builders, sub-contractors and owner-builders.
Most owner builders take out contract works insurance for a specific contract while professional builders generally choose an annual policy that covers multiple contracts.
What can contract works insurance cover?
Contract works insurance varies in the benefits they provide. Your Westphalian insurance broker can help you find the right product to suit your construction needs. Depending on your policy, contract works insurance may cover you against:
| Type of cover | Potential benefits |
| Property damage | Physical loss or destruction of tangible property, plant and equipment as well as removal of debris |
| Public liability | Sub-contractor liability, products liability and cross liability |
| Product liability (only available from some insurers) | Third party personal injury or property damage resulting from an occurrence caused by your products after they cease to be in your possession or control |
| Legal expenses/defence costs | Legal costs and expenses you are legally liable to pay following legal proceedings bought by or against you. |
| Existing structures (optional) | Sudden and accidental physical damage to existing structures caused by natural events and the actions of the builder or contractor. |
What usually isn't covered by contract works insurance?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk, the insurer and the requirements of your business.
Policies generally do not include cover for:
- Loss after work has ceased for more than the number of days specified in the policy
- Consequential loss
- Cost of rectifying or correcting defective workmanship
- Work underground or in water unless specifically agreed by the insurer
There are exclusions which are specific to each type of policy, which your Westphalian insurance broker can outline for you.
