Many builders will find themselves needing contract works insurance at some stage.
Contract works insurance, also known as contract risk insurance, is a type of cover designed to cover builders for various risks relating to building contracts.
Some of the risks covered by this form of insurance may include the following:
- Loss or damage to building materials
- Property damage
- Loss or damage to tools and equipment (usually limited)
- Contract variations up to a certain percentage
- Property in transit or storage
The specific cover offered by each contract works insurance policy can differ, so it is recommended that you check each policy carefully to ensure the coverage is adequate for your needs.
Contract works is an important form of builders insurance, and in many cases, especially when large contracts are involved, a policy will be mandatory as stipulated under the contract.
Although there can be some overlap with public liability insurance and tool insurance, a contract works policy is generally considered to be a separate policy which does not replace the others.
For more information please speak with your builders insurance broker, or get in contact with us and will put you in touch with a suitable insurance professional who understands your needs.