Contract & Building Works Insurance Brokers

Commercial Clients

Contract Works
& Building Works

If you are undertaking any extensions, refurbishments, property development or construction, then the contract (between the client and the contractor) will generally stipulate who is responsible for loss or damage incurred during the buildings works.

Whether you are the property owner, developer or contractor, before starting any building project, having the right building contract works insurance in place is of paramount importance. This is where Cox Mahon can assist.

Contract Works Insurance is designed to cover the building project in progress (“The Works”) against fire and other perils from the commencement date until its handover or completion. It can be arranged on a specific project basis, but for building companies, it is more usually arranged through an annual Contract Works insurance policy, covering all projects during the year.

Contractors All Risks (“CAR”) insurance is a wider form of policy that will include cover for The Works, but also items such as:

  • Own Plant on site
  • Hired In Plant (including any ongoing liability for continual hire charges if damaged whilst in your custody)
  • Tools (both your own and employees tools)
  • Temporary buildings

CAR insurance should not just be a consideration for building contractors or developers, but also a wide range of ancillary trades such as electricians, shopfitters, heating & ventilation contractors, double glazing installers, dry lining firms and flooring contractors.

Q&As – contract works and building works insurance

Frequently asked questions (and answers), regarding insurance cover for both contract works and building works insurance.

Q1: What is Contract Works Insurance?

A1: Contract Works Insurance, also known as Builders Risk Insurance, is a specialised policy designed to protect construction projects during their construction or renovation phases. It provides coverage for damages, losses, and liabilities that can occur throughout the construction process. This type of insurance is crucial for contractors, builders, and property owners, ensuring financial security and project completion.

Q2: Why is Contract Works Insurance important for contractors and builders?

A2: Contract Works Insurance is essential for contractors and builders as it safeguards their investment in a construction project. Without this insurance, they might face significant financial risks if unexpected events like fire, theft, vandalism, or extreme weather conditions damage the worksite. It ensures that the project can be completed without delays and additional expenses, giving peace of mind to all parties involved.

Q3: How does Contract Works Insurance benefit property owners and developers?

A3: Property owners and developers benefit from Contract Works Insurance by protecting their investments. If a construction project is delayed due to unexpected events, it can result in financial losses and additional expenses. This insurance helps them avoid such setbacks and ensures the project is completed as scheduled. It can also help attract contractors who prefer projects with this protection in place.

Q4: What is Building Works Insurance?

A4: Building Works Insurance, also known as Renovation Insurance, is designed to protect existing structures during renovation or refurbishment projects. It covers the property against accidental damage and liabilities during the construction process. Property owners, contractors, and developers often opt for this insurance to minimise risks.

Q5: Why is Building Works Insurance important for property owners and renovators?

A5: Building Works Insurance is essential for property owners and renovators because it shields them from potential financial losses and setbacks during renovation projects. Unexpected accidents, damage, or injuries can occur, and without this insurance, the costs would fall directly on the property owner. It ensures that renovations can proceed smoothly and mitigates potential financial risks.

Q6: How does Contract Works and Building Works Insurance protect against legal liabilities?

A6: Both Contract Works and Building Works Insurance can include liability coverage, protecting against legal claims resulting from property damage or injuries on the construction site. This coverage helps ensure that parties involved in the project are not held personally responsible for these liabilities.

In summary, Contract Works and Building Works Insurance are crucial for contractors, builders, property owners, and renovators. They provide financial security and protection against unforeseen events, ensuring the successful completion of construction and renovation projects while reducing the associated risks and liabilities. These insurance policies are indispensable tools in the construction and renovation industry, giving all stakeholders peace of mind and confidence in the project’s success.

Additional insurances a building contractor may require include:

  • Employers Liability Insurance
  • Public liability insurance
  • Non negligence insurance/JCT 21.2.1 Insurance/JCT 6.2.4 Insurance
  • Property Insurance (existing structures)
  • Design & Construct Professional Indemnity
  • Latent/Inherent Defects Insurance
  • Terrorism Insurance
  • Environmental Impairment Liability/Pollution
Contract & Building Works Insurance Brokers