Commercial Insurance

Contract Works Insurance

Contract Works is an ‘all risk’ policy designed to protect a contract during construction. The policy encompasses two sections of cover, Material Damage and Liability.

The policy is available in two forms, Single Project or on an Annual basis. The Single Project policy will provide cover for a specific project, with the annual policy covering all projects during the 12 month period.

The Annual policy can be written on a ‘Turnover’ or ‘Run-Off’ basis and care needs to be taken with your annual declaration to ensure no gaps in coverage. Turnover, also known as ‘Transfer’, will only cover the work undertaken during the policy period, while Run-Off will cover any contract commencing during the policy period through to completion of the project (or expiry of cover as per the wording).

Cover can be arranged by either the Principal or the Builder (or an Owner Builder), Developer, Contractor or joint venture or Private Public Program, and can extend to any party who has an interest in the project(s).

In general, a Contract Works policy will insure the value of the contract for physical loss or damage, for all risks not otherwise excluded, and will provide a number of additional benefits to assist in getting the project back on track following a loss.

The Liability section covers your legal liability to pay compensation to a third party for bodily injury or property damage arising from your negligence in undertaking your insured activities.

Additionally, various coverage extensions are negotiable, such as:

  • Delay in Start-Up
  • Liquidated Damages
  • Advanced Consequential Loss
  • Advanced Loss of Profits
  • Difference in Conditions
  • Excess Buy-Down
  • Design Exclusion Drop Down

Common questions on contract works insurance

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Case Study

A number of steel-framed industrial units are being erected on an estate. The design engineers have miscalculated the load on the bolts that secure the roof beams together. Mid-way through the project the bolts fail as the final roofing panels are being fitted to one unit, which collapses damaging the neighbouring completed unit.

Costs are incurred for replacing the bolts that failed, replacing the roof structure that was damaged when it collapsed, making good the damage to the supporting wall, repairing damage to the neighbouring unit, redesign costs for the defective bolts and replacing the bolts already fitted in the other units.

How the policy responds to this loss is dependent on the Defects Exclusion applied in the wording.

Success stories

  • Knight Frank Valuation & Advisory

    Nick​​​​ Bell - Partner

    The advice and service provided by Cos and his team is exceptional. Apart from industry knowledge expertise, the additional value-add offerings around risk management are well received.

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  • Oxigen

    James Hayter - Director

    Oxigen continues to enjoy a productive relationship with Planned Cover that has supported our practice for over 25 years and in ways that extend beyond the provision of insurance cover and professional advice. The Planned…

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  • FK

    Mark Murphy - Managing Partner

    The Planned Cover relationship supports our high standards of design and project delivery performance by partnering with the FK board and leadership team on various risk mitigation strategies and by tailoring insurance solutions that adapt…

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  • Ashton Associates

    Mark Ashton - Director

    The service provided has been exceptional and the Perth Office has always been there for us obtaining competitive quotes, improving our insurance understanding through seminars, and providing advice on those complex service contracts.

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    Bryce Dodd - Managing Director

    Planned Cover, led by Marie and the team, has been our trusted insurance provider for over two decades. Their prompt, professional service and expertise in professional indemnity and public liability insurance have been invaluable to…

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  • Ashburner Francis

    Brian Kenny - Managing Director

    Our partnership with Planned Cover has been ongoing for many years, and offers peace of mind by helping us navigate the complex world of professional insurance.

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    Greg Chalmers - Director, CMP Consulting Group

    Planned Cover has provided CMP’s Professional Indemnity for almost the entirety of our 15-year history.  We have found their staff to be friendly, proactive and helpful in getting comprehensive policies in place for a reasonable…

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    Andrew Brady - Managing Director

    With a myriad of services, clients and sectors that GRC covers, the team at Planned Cover has been instrumental in sourcing insurance that meets our ever-evolving business by knowing how we operate and how we…

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  • Covey Associates

    Kevin Covey - Director

    Covey Associates has been using Planned Cover for their Professional Indemnity Insurance needs for over 20 years. Thanks to Marie Bailey’s exceptional customer service and personalised approach, along with her extensive knowledge of all thing’s…

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