Contract Works Insurance

Contract Works Insurance, also known as Construction All Risks Insurance, is designed to cover builders and tradespeople for loss or damage to building works under construction. It is essential for managing the risks associated with construction projects, from minor renovations to major new builds.

What is Covered:

• Material Damage: Covers unforeseen loss or damage to the construction works, materials, and equipment during the project.

• Theft and Vandalism: Provides coverage for theft of materials or damage caused by vandalism on the construction site.

• Public Liability: Protects against third-party claims for injury or property damage related to the construction works.

• Tools and Equipment: Covers the contractor’s tools and equipment if they are lost, stolen, or damaged.

• Extension of Coverage: May include coverage for off-site storage, transit to the construction site, and debris removal following a loss.

What is Not Typically Covered:

• Defective Design or Workmanship: Losses due to poor design or faulty workmanship are generally excluded, although resultant damage may be covered.

• Wear and Tear: Standard wear and tear or deterioration of tools and equipment is not covered.

• Cost Overruns: Additional costs that exceed the original project budget are not covered unless caused by an insured event.

• Delays: Financial losses due to project delays, unless caused by an insured peril, are typically not covered.

• Contractual Penalties: Penalties for not completing the work on time are not covered unless due to an insured event.

• War and Terrorism: Most policies exclude damage due to war, terrorism, and similar events unless specifically included.