Typically, Builders Insurance Policy will cover:

• Loss or Damage to the insured's construction project
• Loss or damage to third party property
• Personal Injury to a third party or person

On a construction site there are a number of scenarios where loss and damage to a building project can occur, including; storms, fires, earthquakes, water damage or malicious damage and theft just to name a few.

A good policy should also provide cover for the costs of demolition, removal of debris and other fees associated with restoring the site to a workable state.

Some policies also include cover for tools of trade utilized on site plus hired plant, machinery and other mobile equipment. If you have a contractual obligation to provide this cover, or are otherwise uninsured for these items, you should ensure your policy can extend to provide this cover.

Who Needs Contract Works Insurance?

It should be taken out by Licensed Builders and/or contractors upon commencing a new residential or commercial building project.

To find out if you are contractually obliged to take out this particular cover or any other insurance cover for a project you are commencing, iLink Insurance Brokers provide a free Contract review service to our clients.