What does Construction Insurance include?
Commonly reffered to as contract works insurance, this type of insurance is designed to cover construction-related activities and assets on a single project or on an annual cover basis.
Typically, contract works insurance includes two key types of insurance cover as part of a packaged policy; material damage insurance and public and product liability insurance.
Public and product liability insurance is a key form of business insurance that can help protect builders if certain accidents were to occur.
If a client, sub-contractor or other person claims that activity completed as part of a project has resulted in an injury or damage to their property, the builder could be liable for the subsequent medical, damage and/or legal expenses.
Public liability insurance can help protect you if a third party is injured or their property is damaged during construction, whereas product liability provides cover for certain risks after works have been completed.
Display Building and Content Insurance for Residential Builders
Many domestic builders also offer display home viewings as part of their sales operations. However, this additional service can exposes builders to the increased risk of theft or damage, especially as these buildings are unoccupied outside office hours.
Builders insurance arranged by Marsh includes optional display building and content cover.
Material Damage insurance
Material damage insurance covers builders who experience loss or damage to buildings, materials and equipment. This can include accidental damage from:
- Construction collapse
- Storm and flood damage
- Natural catastrophes – earthquakes and cyclones
Instead of halting operations material damage insurance can help get your construction project back on track by covering the costs of reinstating insured items that were impacted.
Speak with a dedicated insurance broker today to arrange a quote for your business.
Project specific or annual blanket insurance options available
There are two policy formats that builders can choose from when arranging construction insurance. They are:
- Project specific cover
- Annual based cover
The policy structure best suited to your business needs may vary on the size, value and risk profile of your construction projects. Our team are available to provide further insight about the different policy structures.
Bespoke insurance and risk management offerings for Large Builders
From home renovations to multi-faceted high-rise developments, our specialised insurance brokers work with builders of all sizes, specialties and complexities to arrange insurance solutions tailored to your industry's risk exposures.
Arrange a consultation with one of our team members today.
The Marsh Insurance Broker Value
Your Trusted Broker
Helping builders create an effective risk management plan
We work with you to establish a strong upfront understanding of your business operations and upcoming projects, risk profile and appetite before proposing an effective risk management plan. Our aim is to give builders confidence knowing that their risks and exposures are identified, qualified and mitigated.
An Insurance Broker dedicated to your business.
As part of our service offering to Australian builders, we pair each client with a skilled insurance broker whose experience aligns with the risk profile of the business. So when your business needs evolve, so too can your insurance cover.
Seamless claims process and advocacy
The value of any insurance policy is tested by its ability to respond to claims when needed. Our dedicated insurance brokers can help manage, negotiate and settle claims with insurers on your behalf.
Additional insurance solutions for Builders
Commercial Vehicle & Fleet Insurance
Commercial vehicle and fleet insurance can help cover a businesses vehicles against damage or loss. We can arrange insurance for all of your businesses vehicles, listed under one policy.
Management Liability Insurance
Business owners, directors and officers can be held personally liable for breaches made by their company. Management liability insurance can help cover and reduce the risk of these financial exposures.
Does your business store sensitive business information including customer data on your server or a third party service provider? Cyber insurance can help minimise the financial impact and risk of cyber-attacks.
Tools of Trade Insurance
Make sure your tools and equipment are covered with tools of trade insurance. This form of insurance helps cover tools for replacement or repair if they become damaged, lost or stolen.
Easy Insurance for Hard Working Tradies
Did you know that Marsh also helps tradies arrange comprehensive insurance for their business? With 4000+ tradies already trusting Marsh as their insurance broker, we service a range of trades, including:
- And many more!
Not sure what insurance cover your business needs?
Our team can assist you with a variety of insurance solutions. Contact us today to arrange an in-depth review of your insurance and risk management needs.
Do I need Professional Indemnity Insurance as a builder?
If a company offers building design advice or services as part of their business activities, Marsh highly recommends that they consider arranging professional indemnity insurance cover as well. If a client claims that an error in the design advice or service they received from a business has caused injury, damage, or financial loss, that business may be held liable for any losses suffered as a consequence.
Professional indemnity cover can help protect a business against allegations of incorrect advice, breach of professional duty or negligence from a third party (usually a client).
What is Contract Works Insurance?
Contract works insurance, also known as Construction All Risk insurance, is a form of cover that combines public and product liability and material damage insurance within the one solution.
Material damage insurance covers builders who experience loss or damage to buildings, materials and equipment.
Public liability insurance can help protect you if a third party is injured or their property is damaged during construction while product liability provides cover for certain risks after works have been completed.
Make sure your construction business and assets are covered with contracts work insurance.
What is typically not covered by contract works insurance?
Contract works insurance varies from insurance provider to provider and there are coverage triggers, exclusions, deductibles, excesses and limits that you should review before deciding the appropriate policy for your business.
Examples of typical exclusions:
- Delay penalties and consequential loss
- Wear and tear
- Loss or damage due to faulty design
- Loss or damage discovered only at the time of taking inventory
- Mechanical and/or electrical breakdown of construction equipment and machinery
- Contractual liability such as where you assume liability in a contract regardless of fault
To learn more about the full details of the exclusions that may apply to your specific policy, please speak to your insurance broker or read the product disclosure statement.
Can I extend my policy period if my project is expected to run over its original timeframe?
It is important to understand the construction period allowed for under a contract works policy.
Under an annual policy, a maximum construction period will be allowed for. In the event a project has the potential to extend beyond this period, it’s important to make your insurer aware as soon as possible to allow time for any negotiations that may be required. Without agreeing to an extension with an insurer, the project will become uninsured.
Does Marsh offer monthly payment options?
Yes, we can organise monthly instalments* through a third party provided your business meets certain criteria.
To request monthly payments please fill out our contact form and our team will get back to you shortly.
*Interest and additional fees are applicable. Terms and Conditions apply.
With increased momentum expected across all construction sectors, we explore the current risk landscape and exposures impacting the industry.
When arranging Construction Insurance, Marsh act under binding authority on behalf of QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239 545) and not for you. The other insurance solutions referred to on this website are underwritten by various insurers.
Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“MAI”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) which is a related entity of MAI. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Advantage Insurance on request.