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Protect Your Construction Project with Contract Works Insurance

Lucy Robson


General Insurance

Undertaking construction projects, such as building extensions or renovations, can be an exciting yet challenging endeavour. As a broker committed to providing comprehensive coverage for our clients, we want to ensure that you have the necessary protection throughout the construction process. That's why we highly recommend considering contract works insurance.

What is Contract Works Insurance?

Contract works insurance, also known as construction all risks insurance, is designed to provide coverage for the works being carried out during a construction project. This type of insurance offers a comprehensive range of protections, including liability cover, coverage for tools and equipment hired specifically for the project, as well as items that have been purchased but not yet installed in the building.

Why is Contract Works Insurance Important?

Contract works insurance is essential because it covers the actual work that has been completed before the project is finished. Let's consider a scenario to illustrate its significance. Imagine a business owner who has comprehensive insurance coverage for their property and decides to add an extension. The builder completes the first fix stage of the project, and the business owner has already paid half of the agreed contract value. Unfortunately, a break-in occurs, resulting in the theft of all copper wire and plumbing. In this unfortunate situation, the cost of replacing the stolen items and redoing the work would be covered by the contract works insurance policy.

Moreover, contract works insurance provides protection in unforeseen circumstances such as a fire that damages or destroys the new part of the property. Whilst the existing structure would not be covered by the buildings insurance, if the property were to burn down due to reasons beyond the control of the builder or contractors working on the project, a contract works policy would cover the reinstatement of the work that had been completed, including all the materials required for reinstatement.

Flexibility in Obtaining Contract Works Insurance

Contractors or property owners can opt for standalone contract works insurance policies specifically tailored to their requirements. It is all dependant on what is outlined in your Joint Contract Tribunal (JCT) contract. This is a contract that outlines the responsibilities of the clients and the contractor who is carrying out the works. The JCT contract has different levels so sometimes it’s the contractor's responsibility for insurance and other times it is the clients.

As a broker, we encourage our clients involved in construction projects to assess their needs carefully and consult with our knowledgeable professionals to determine the most suitable coverage options. We can provide expert guidance to help you understand the extent of coverage needed, the associated costs, and any additional provisions that may be beneficial for your specific project.

When it comes to construction projects, unforeseen events can occur, potentially leading to significant financial losses. Protecting your investment with contract works insurance is a smart and responsible choice. Whether you're a contractor or a property owner, having the right insurance coverage can provide peace of mind and financial security throughout the construction process.

Start the conversation

We are dedicated to offering comprehensive insurance solutions that cater to your unique needs. Contact us today on 01273 424904 to explore your options and ensure that your construction project is covered with contract works insurance.

Let us be your trusted partner in safeguarding your construction endeavours.

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