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What Is Contract Works Insurance?
Contract works insurance covers a building or construction project while it's being built - the structure, materials and labour - against loss or damage before it's handed over. Here's what it covers, who arranges it, and why most build contracts require it.
What contract works covers
Contract works (sometimes called construction or 'course of construction' insurance) covers the project itself while work is underway - the partially built structure, the materials on site, and the value of the labour already put in. If a storm, fire, flood, theft or accidental damage sets the job back, the policy pays to reinstate it.
Most policies can be extended to cover existing structures being altered, materials in transit or storage, professional fees to redesign or rebuild, and removal of debris after a loss.
Who needs it, and who arranges it
Anyone with a financial stake in a build carries the risk of it being damaged before completion - the builder, the head contractor, and the property owner. Whose job it is to arrange contract works depends on the contract, so it's worth confirming rather than assuming the other party has it covered.
On many residential and commercial contracts, evidence of contract works cover is a condition of the agreement, and the principal or financier may need to be named on the policy.
Contract works vs public liability
They're different things and you usually need both. Contract works covers damage to the project itself; public liability covers damage or injury your work causes to other people or their property. A complete build programme pairs the two, often alongside plant and equipment cover.