What does Contract Works Insurance cover?



Construction has consistently been among the top few industries with the highest number of serious claims. The Australian Work Health and Safety Strategy 2012-2022 identified the construction industry as a priority due to the high number of work-related fatalities.

Construction work is defined by SafeWork Australia as any work carried out in connection with the construction, modification, conversion, fitting out, commissioning, renovation, restoration, maintenance, refurbishment, demolition, decommissioning or dismantling of a structure, or preparation of a building site.

A number of elements can go wrong when working on a construction site which can cause serious and considerable damage or loss to your financial position, as well as your businesses reputation.

In order to protect yourself and your business assets, in the case of an incident taking place, it is crucial to manage the different risks that occur throughout the duration of a construction project.

What does Contract Works Insurance cover?

Small, medium and large commercial, industrial and domestic builders, sub-contractors and owner-builders are all recommended to consider Contract Works Insurance.

Contract Works Insurance provides protection to cover the cost of materials, labour, tools and plant hire if something were to go wrong during the course of the project.

Depending on your chosen policy, Contract Works Insurance can cover you against:


Cover Benefit
Property Damage Physical loss or destruction of tangible property
Public Liability Sub-contractor liability, products liability and cross liability
Product Liability Third party personal injury or property damage resulting from occurrence caused by your products
Legal expenses/Defence Costs Legal costs you are liable to pay for following legal proceedings brought by or against you
Existing structures Sudden accidental physical damage to existing structures caused by natural events and actions of the builder or contractor




What is not covered by Contract Works Insurance?

Depending on your insurer, exclusion, excess and limits of liability can differ significantly.

In general, policies will not include cover for:

  • Loss after work has ceased for more than the number of days specified in the policy
  • Consequential loss
  • Cost of rectifying or correcting workmanship
  • Work underground or in water unless specifically agreed by the insurer
Why is having Quality Insurance important?

Minimising the potential risks to your business ensures your continuing success, and therefore should be a priority for any business owner.

While added premiums may seem overwhelming, ensuring that your business is sufficiently protected now and into the future is highly important.

How Gow-Gates can help:

Gow-Gates Insurance Brokers has a highly experienced team who focus on finding the very best Insurance policies for our clients which are tailored for you and your business needs. We have excellent relationships with a variety of insurers and can source the most cost-effective policies for you.

If you have any questions about Contract Works Insurance or which policy is the right one for you, do not hesitate to contact us.

Please contact:

Gow-Gates Insurance Brokers


Phone: 02 8267 9921