1800 762 872

Construction Works & Public Liability Insurance

Building projects can be risky, comprehensive Construction Works and Public / Products Liability insurance is essential to protect your work.

Construction Works insurance covers the builder or contractors contractual requirements to insure loss or damage to the build project. The cover also includes items on-site that are included in the build project. The goods and materials comprising the works will have to be replaced at your expense if you go uninsured. Cover is available for both residential and commercial builders and is tailored to suit the projects that are undertaken.

There are two areas of cover within this policy;

  1. Damage to the works including: Broad "accidental damage" cover for insured works including fire, theft, water damage, flood, malicious damage, storm and cyclone subsidence, landslip and earthquake.
  2. Public and/or Product Liability - provides cover for third party property damage or injury as a result of the insured's negligence.

A Construction works policy can be taken out as either an Annual Turnover Policy or a Single Project Policy.

Annual turnover policy

What is protected?
An annual turnover policy provides cover for Public and Products Liability including:
 -  Indemnity for sums which you may become legally liable to pay as compensation in respect of bodily injury, property damage or advertising injury, arising from an event  in connection with your business.
 - Ongoing cover past completion of the project, for damage or injury caused by your ‘product’.  The product is not covered; however the damage or injury caused by your product to the third party, maybe covered.

When are you protected?
- During the course of your business activity across the multiple sites and locations where your work is conducted.  For Example: Quoting a job, operating a display home or office, working on multiple construction sites over the policy period.

The benefits of an annual turnover policy:

  • An annual turnover policy maybe more cost effective than purchasing multiple single project policies.
  • Covers you for liability arising from your business activity at multiple locations.
  • Reduces the risk of 'forgetting' to insure a project, leaving your business open to risk.
  • May provide greater liability cover than a single project policy.

Specific project policy

What is protected?
 - A specific project policy is taken out to provide cover on one specific job-site only.

When are you protected?

 - Your Public Liability arising out of your business activity from one specific jobsite that has been insured.

What is not protected?
 - Products Liability is not covered in a single project policy.  Products Liability covers your business for injury or damage to third party property resulting from a faulty 'product' after your work has completed.

Key policy features:

  • Annual or individual project basis
  • Automatic tools cover to $20,000 whilst on site including hired in plant and mobile equipment where it is your responsibility to insure
  • Automatic cover for maintenance periods up to 12 months
  • Professional fees, demolition/removal of debris, covered automatically and in addition to the contract price without charge
  • Automatic cover for contract variations or cost escalations to 15%
  • Automatic cover for storage off site, and materials in transit - limit $50,000
  • Speculative homes, display homes, whilst in use, or strata units awaiting registration are automatically covered up to 12 months from commencement of the construction
  • Automatic cover up to 90 days following practical completion where handover is delayed
  • Builders profit margin included for insured losses
  • Materials supplied by owners automatically included at 10% of contract price

Tools and equipment can also be covered offsite 24 hours a day 7 days a week for an additional premium.

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1800 762 852