Contract Works Insurance
Compare contract works insurance quotes to find the best insurance deals for your construction business.
What is Contract Works Insurance?
Contract Works Insurance, often known as “Contractors All Risk Insurance” is a type of insurance that provides protection for works being carried out throughout a project.
Projects often have strict schedules and budgets, so a severe delay or interruption can affect multiple contractors, subcontractors, and the customer, resulting in everyone being left out of pocket if something goes wrong. This is where Contract Works Insurance provides protection.
It can cover the cost of redoing works, and the cost of expenses that are incurred, if the work in progress is halted or damaged by an insured event, such as accidents, adverse weather, fire, vandalism and theft.
Who is Contract Works Insurance for?
Builders and tradesman within the construction industry are typically those that require Contract Works Insurance, including Sole Traders, Partnerships and Private Companies.
Examples of businesses that need contract works insurance include:
A scaffolding company
If scaffolding breaks or falls, contract works can cover the cost of repairs.A General Builders
If a problem arises during construction that causes a delay, such as a storm, contract works can cover the cost of repairs, and delay to the project.An Electrical Contractor
If flooding causes damage throughout an electrical installation, contract works can cover the cost of repairs and replacement parts.Is Contract Works Insurance a requirement?
It is essential to check the terms of any contracts before starting work, as contract works may be a requirement within the terms of the contract.
It is also commonly a legal requirement for businesses working on contracts that are worth £500,000 or more to have contract works insurance. So it is essential to check whether you are required to have contract insurance in place in order to comply with the law.
Without contract works insurance your business isn’t protected if something goes wrong, and you can be liable to cover the full costs arising from issues that may not be your fault.
What does Contract Works Insurance cover?
- Legal expenses. If you are taken to court as a result of an incident, contract works can cover the cost of your legal expenses.
- Repairs and materials. If work needs to be re-done as a result of an insured event, such as adverse weather, contract works can cover the cost of the repairs and replacement materials.
- Loss of earnings. If the project is delayed or put on hold, contract works can cover the cost from financial losses as a result.
- Temporary employees. If an accident occurs resulting in temporary employees being required, contract works can cover the cost of their wages.
What doesn't Contract Works Insurance cover?
- Poor workmanship. If the quality of your work is not up to standard, contract works will not cover the cost of repairs or replacements.
- Employee theft. If workers are found to have stolen equipment from site, contract works typically won’t cover the cost of replacements.
- Cancellations. If a project is cancelled completely, contract works generally won’t cover the financial losses occurred.
- Terrorism. Damage resulting from terrorism typically isn’t covered within contract works insurance.
How much does Contract Works Insurance cost?
The cost of contract works insurance varies depending on a range of factors. These include; the level of cover you need, the value of that cover, the nature of your work, and any risks specific to your company operations or industry amongst other factors. Businesses that are perceived as riskier will usually pay a higher policy price.
Another important factor to consider is choosing the right provider for your business insurance. The overall cost can vary dramatically between providers, even for the same or similar levels of cover, so it’s always worth comparing a number of providers to ensure you get the best deal.
What information do I need to get a quote?
To get a quote for contract works insurance, you’ll need the following information:
- Business name, trading address and legal status.
- Trading history, including date of registration, length of time trading.
- Details of contracts you are involved in
- Details of involvement in high risk activities
- Details of claim history (if any)
- Policy preferences – including type of cover, what options you want & policy start date.
