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  • Writer's pictureAmanda Bird

Answers to Common Questions about Contract Works Insurance

If you work in construction, then you may be familiar with contract works insurance. However, if you are not familiar with it, then keep reading below to find out more.

What Is Contract Works Insurance?

As the name suggests, contract works insurance is a type of insurance coverage that helps you protect your business from financial risks that may arise from working on a contract. It protects you from the costs of any damage or loss that you may incur while you are working on a contract, as well as any subsequent costs involved in restoring the work area to its former state.

Contract works insurance is a type of commercial property insurance that is often purchased by construction companies. Those who are not in the construction industry may also purchase this type of insurance, though it is more commonly associated with companies that work on construction sites. Many insurance companies offer this type of insurance, so it is available to anyone who wants it.

What Is Covered by This Insurance?

The type of insurance you purchase may vary from company to company, but the range of what is covered is often similar. Here are some examples of what is normally covered:

  • Fire

  • Vandalism

  • Storm and flood damage

  • Natural disasters

  • Theft

You can find out more about the types of incidents that are covered by contract works insurance by reading through your insurance policy in full. As well as the risks that can be covered, the coverage that you or your business has may depend on the nature of the work that you will be doing at the site, as well as your location.

What Is Not Covered by This Insurance?

As mentioned above, this will vary depending on where you get your insurance from. However, it is safe to say that there are some common scenarios where you will not get insured. These scenarios are:

  • Damage due to faulty design

  • Mechanical or electrical breakdown of equipment

  • Terrorism

  • Wear and tear

To learn more about the exclusions of your insurance, it is best to contact your policy provider

Who Utilizes Contract Works Insurance?

This type of insurance is most commonly associated with contractors and construction companies. However, there are many other businesses who utilise contract works insurance as well. For example, farm owners may also use this type of commercial property insurance, as each year they may be working on constructing a new farm building or installing new farm machinery. As well as those working in the construction or farming industries, you may also be able to find this type of insurance available for other types of construction projects.

Can the Policy Coverage Be Annual Instead of by Project?

Yes, annual policy coverage is often given for contract works insurance. An annual-based policy is most cost-effective for builders who work on multiple projects in a year.

There may also be different benefits in annual-based policies versus the single project ones. They may have different premiums and different coverage. This is why it is best to discuss the whole insurance with your provider before you make a final decision.

Can the Policy Be Extended?

There will be times when there are delays during your construction, and your insurance would no longer be in effect by then. If you foresee a delay in your project, it is best to immediately speak with your provider before the policy ends. Try to see if it is possible to extend the policy or if you need to sign up for a new one.


Contract works insurance is a type of commercial property insurance that is often purchased by construction companies. This type of insurance provides coverage for various risks, such as fire and flood damage. In times of uncertainty, this type of insurance can offer financial protection against the costs of repairs, loss of materials, and other costs that may be associated with damage to your project. If you are in the construction industry, then contract works insurance is something that you should be aware of.

If you are seeking insurance for contract works, we at New Wave Insurance can help you find the right one. It may be difficult to find a policy that meets all your needs, but with our professional guidance, you will be able to find one no matter what. Contact us today to learn more.

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