Construction Insurance
What are the key risks in the building and construction industry?
Construction projects involve multiple stakeholders and are often undertaken on challenging sites. Construction businesses must often manage changes to scope or orders, poorly written contracts and specifications and complex project management issues. They may need to deal with labour and materials shortages, or theft of tools and materials.
Subcontractors and suppliers can provide extra stress for construction firms, as can the rising number of extreme weather events. What’s more, cybercrime is an emerging threat to construction businesses, which often use insecure connections from mobile workplaces, and share files and data with stakeholders outside the business.
What is Contract Works Insurance
When you’re working on a construction site, plenty of things can go wrong. Damage or loss to a building could cost you time, money and even your reputation. Meanwhile, an outside injury can result in considerable pain, stress and financial loss.
That’s why having the right amount and type of contract works insurance is an important part of your business toolkit, allowing you to get on with the job with less stress and worry.
Who should consider it?
Whether you’re an owner builder, a contractor or a large construction company, you’ll need a range of insurance covers to safeguard your workers, building and equipment.
What insurance should you take out - and what can it cover?
Insurance can protect you and your employees onsite, on the way to work and in your office.
Contract works
Protects any buildings under construction and construction equipment. This cover may include protection against:
natural disasters like fire, earthquake, storm, flood, wind and water damage
damage to property caused by defects, theft and malicious damage or vandalism or smashed glass
third-party personal injury and property damage.
Business pack
Safeguards your business premises against:
equipment or machinery breakdown
employee dishonesty
property or glass damage
legal issues, with public and products liability
tax audit
theft, and theft or loss of money.
Cyber
Safeguards you and your business against expenses and legal costs if your website or other systems are hacked and your system cannot be used or customers’ details are stolen.
Motor Insurance Takes care of your valuable business vehicles with cover to:
help if you or your staff damage another person’s vehicle
repair your vehicle after an accident or replace it if it’s written off
replace a lost or stolen vehicle
safeguard you against legal liability.
Professional Indemnity
Protects you against legal action from a client for breach of professional duty. This type of insurance is often required by building contracts.
Workers Compensation
Covers the cost of your employees’ wages, rehabilitation and medication if they become injured or sick through their work.
Case Study
After working for other construction company owners all his working life, Craig starts his own small earthmoving firm. In the first couple of years, he borrows money and invests much of his income back into the business, buying the latest equipment and a work vehicle.
After starting work on a new construction at a new site, he leaves his tools and equipment locked in a garage on the site overnight. But that night, thieves break into the garage and steal Craig’s tools, worth $25,000.
Craig contacts his insurance broker who helps him put in a claim. He’s quickly reimbursed for his loss, so he isn’t out of pocket and can keep his business running.
What usually isn’t covered?
Exclusions, the excess you have to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:
Loss once the project is complete and maintenance has passed.
Consequential loss
Cost of rectifying or correcting defective workmanship
Work underground or in water unless specifically agreed by the insurer.
Find out more
Every business is different - which means you need an insurance solution that is tailored for you. For more information, contact us today.