Contract Works Insurance

Contract Works Insurance is structured to provide comprehensive coverage and is organised into two key sections.

The first section safeguards your construction work throughout the construction period, offering protection against loss or damage. This encompasses materials, tools, plant, and equipment, ensuring that your valuable assets are secure during the course of the project.

The second section focuses on Legal Liability, addressing public liability concerns arising from construction activities. This coverage extends to injuries or damages caused to third parties during construction work. Additionally, it includes Products Liability (or Completed Operations Liability), offering assurance that even after project completion and handover, any liability for injuries or damages to third parties resulting from your completed work is still covered.

The flexibility of Contract Works Insurance allows for customisation to suit the unique needs of your business. Various arrangements can be made to ensure that your coverage aligns perfectly with the specific risks associated with your construction projects.

Why is Contract Works Insurance important?

Contract Works Insurance is a tailored insurance package crafted for builders and contractors, irrespective of their size. It provides financial support in the event of accidents, damages to the works during construction, injuries, or loss or damage to valuable plant and equipment. This insurance offers a valuable means of transferring significant financial risks to an insurer through a fixed premium, thereby minimizing overall risk. Additionally, many head contractors and principals mandate the presence of this insurance for builders.

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FAQ's about Contract Works Insurance

  • What is construction works insurance?

    Contract works insurance, also referred to as Construction risk insurance, constitutes a vital component within an insurance package tailored for builders and contractors of all scales. It provides coverage for the loss or damage of materials involved in the construction, materials intended for project integration, and temporary structures. Additionally, the policy typically extends to safeguard builders’ or contractors’ tools, plant, and equipment, offering protection against accidental loss, damage, or theft.

  • What is public liability insurance?

    Builders’ Public & Products Liability insurance offers protection against injuries sustained by other contractors working on the construction site (public liability). It also covers damage to property constructed or completed once the builders have vacated the site.

  • Does a builder need contract works insurance?

    This insurance package is a standard requirement within the building and construction industry, widely recognized and mandated by many head contractors, principals, and financiers prior to on-site commencement. Tailored to mitigate financial risks associated with personal injury, accidental loss, or damage occurring on-site, it also provides coverage for losses or damages caused by contractors or subcontractors during their work. Furthermore, once the site is vacated, the insurance extends to cover personal injury or property damage arising from the completed works.

  • How much does contract works insurance cost?

    The expense associated with acquiring contract works insurance fluctuates based on several factors such as the nature of the work, its proximity to or location on water, and whether it involves plumbing, roofing, or high-rise construction. Additional underwriting considerations encompass prior claims, project duration, defects liability period, total sum insured, and whether it is a one-off project or part of ongoing construction throughout the year. BEA Insurance Brokers, specialising in construction insurance, is adept at evaluating your specific risks and can provide tailored recommendations for optimal insurance coverage solutions.