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Contract Works Insurance

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Contract Works Insurance covers the materials, labour, and equipment involved in a construction project against loss or damage during the build. It protects the financial cost of accidents or unexpected events on site for the policy holder.

You can take out a single project policy for one job or an annual policy that covers all projects you start during a set period. Either way, this cover helps you meet contract requirements, manage your risks, and keep your business moving if something goes wrong.

At Bluewell we help builders and contractors across Australia get the right policy for their jobs whether you’re building homes, commercial spaces, fit-outs, or extensions.

Why You Might Need Contract Works Cover

Building sites are full of moving parts. Materials can be stolen. Storms can damage a project overnight. Mistakes or site accidents can delay everything.

Contract Works Insurance helps by:

  • Covering the cost to repair or replace damaged works
  • Supporting your ability to meet handover deadlines
  • Helping you manage defects, storage risks, and testing
  • Protecting site plant, tools, and equipment
  • Meeting the insurance terms required in many contracts

Without this cover, you may be left paying for repairs yourself or struggling to meet project timeframes.

Annual vs Single Project Cover

Single Project Policy
Protects one specific job for the length of the project, including any defects period if needed. Useful for short-term or one-off builds.

Annual Policy
Covers multiple projects over a 12-month period (or as agreed). Ideal for active builders or contractors working across multiple sites or jobs.

What Does Contract Works Insurance Cover?

Cover varies by insurer, but generally includes:

Material Damage

  • This covers physical loss or damage to:
  • Work under construction
  • Materials stored on-site or in transit
  • Principal-supplied materials
  • Temporary buildings, scaffolding, and formwork
  • Contractor’s plant, tools, and reusable equipment
  • Testing and commissioning
  • Damage during the defects liability period (if included)

Additional benefits may include

  • Removal of debris
  • Professional fees (like engineers or architects)
  • Expediting expenses (overtime or airfreight)
  • Leak search and repair
  • Costs to reduce further damage (temporary protection)
  • Claims preparation costs

Public Liability

This covers your legal liability for:

  • Injury to people not working on the site
  • Damage to nearby property
  • Accidents that happen during the build
  • Legal defence costs and investigation expenses

Real Examples of What It Can Cover

A fire breaks out during fit-out and damages internal walls

Storm water floods a new slab, damaging timber framing

Scaffolding is stolen overnight

A worker accidentally damages a neighbouring driveway

A pipe bursts during testing and ruins freshly installed cabinets

Frequently Asked Questions

Public Liability only covers injury or damage to others. Contract Works covers the actual project being built and the materials used which isn’t typically included in standard liability policies.

In most cases, the head contractor or builder takes out the policy. It may depend on the contract between the parties involved. We recommend seeking independent legal advice to determine your potential exposure.

Contractor’s tools and equipment like ladders, mixers, scaffolding, and formwork can be covered, including theft or damage on site. Tools must be declared and listed.

Premiums are based on your estimated project value or turnover, the location, type of works, construction materials, and your claims history. Annual policies also include a final audit to adjust the premium to match your actual turnover.

Theft can be reviewed by the insurer, and depending on the circumstances and limits they may agreed to have it covered. Some limits may apply. Cover usually excludes theft by employees or unforced entry unless stated otherwise.

Policies may exclude cover if no work happens on site for more than 60 days unless the insurer agrees in writing to extend the period. You must let your broker know in advance if there’s going to be a long pause.

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