Who should consider it?
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 it cover?
Contract works insurance can cover the building which is under construction, whether it’s a kit home, straw bale or mud brick home, or multi-story apartment or commercial buildings. It can also cover the equipment used in construction, as well as public liability risk.
Depending on your policy, contract works insurance can cover you against:
- Natural disasters, such as bush fires, fire, earthquakes, flood and water damage, subsidence and landslip, storm, tsunami or wind
- Damage to property caused by defects, theft and malicious damage or vandalism
- Smashed glass
- Public and products liability insurance, plus extra related costs
- Third-party personal injury or property damage, as well as extra costs like replacing builder’s tools, escalation or removal fees
What isn't cover?
There are exclusions. There is also often a deductible or excess and limits on cover, so check with your Lesure insurance broker.