Contract Works Insurance
Vital insurance cover for the works, materials and plant for building contracts
What is Contract Works Insurance?
If you act as the main contractor and are involved with extending, refurbishing, converting a building or a “new build,” you are likely to be responsible for the actual work being undertaken until the work has been completed and handed over to the owner of the finished property.
If your work is damaged before handing over, you will be liable for all of the costs of doing the work again. Additionally, you may have materials, tools, your own plant, hired in plant and site huts, all of which will require cover for loss and damage. This is where a Contract Works Insurance (also known as Contractors All Risks Insurance) policy can help. If work involves refurbishing a building, the existing structure will still need to be insured by the owner under their own buildings insurance policy.
During a contract, materials and labour will be used to realise the project. If an insured event occurs (accidental damage, theft, malicious damage etc.,) the materials might not be re-usable and the labour used so far will have been wasted. Both these costs can be re-claimed on a Contractors All Risks Insurance policy, so the project can be re-instated back to the original state it was before the claim, at no further cost to the contractor. The project can then be finished and handed over. Contract Works Insurance cover can be invaluable in ensuring a project stays viable and the contracting company stays solvent.
If you are undertaking a self build project – that is to say that you are building a house that you will move into after completion and use as your home – you will require a self build insurance policy. This will typically include contract works insurance, public and employers liability insurance, plant, tools, and materials insurance, all in one package of cover.