Insurance Checklist for Starting a New Construction Business

Starting a construction business is an exciting step, but it also comes with serious risk. Whether you’re launching a civil construction company, plumbing business, carpentry firm, or general building operation, the first thing you must get right is your insurance.

Construction is one of the highest-risk industries in Australia. One accident, damaged tool, or contract dispute can put a new business in financial trouble within days. The good news? With the right construction insurance setup, you can protect your business from unexpected costs and meet the requirements of builders, councils and commercial clients.

This step-by-step insurance checklist will guide you through exactly what you need before starting work.

Step 1: Public Liability Insurance (Mandatory for All Construction Businesses)

Public Liability Insurance protects your business if your work causes accidental injury or property damage to someone else.
It’s the first policy every new construction business must have.

Why new construction businesses need it:

• Most builders and councils won’t let you on site without it
• Covers claims from clients, other tradies, or the public
• Some contracts force subcontractors to take responsibility for all incidents onsite, even those not caused by them

Step 2: Contract Works Insurance (Crucial for Builders & Trades)

Contract Works Insurance protects the project you are working on from accidental damage.

It covers:

• Damage to the building works
• Materials and tools onsite
• Theft, fire, storms, flood (if included)
• Vandalism
• Collapse, accidental damage
• Delays caused by insured events

If you’re in building, carpentry, concreting, formwork, civil works, or renovations, this cover is vital.

Step 3: Tools, Plant & Equipment Insurance

Construction businesses rely heavily on tools and machinery. Losing them to theft or damage can stop your new business instantly.

This policy covers:

• Power tools
• Trailers
• Toolboxes
• Excavators
• Skid steers
• Tippers
• Attachments
• Small plant

It protects against theft, accidental damage, breakdown (optional), and rollover incidents.

If you hire machinery, ensure you have Hired-In Plant cover, many hire contracts make you responsible for any damage.

Step 4: Commercial Vehicle or Fleet Insurance

Your ute, van or truck is one of your most important business assets.

Commercial Motor Insurance covers:

• Accidental damage
• Theft
• Windscreen replacement
• Trade tools kept in the vehicle (if added)
• Signwriting
• Hail & storm

If you’re towing machinery or operating tippers or water carts, you’ll need a specialised commercial motor policy.

Step 5: Workers Compensation

Workers Compensation is mandatory if you employ anyone — even one apprentice or casual labourer.

It covers:

• Worker injuries
• Lost income
• Medical bills
• Rehabilitation

Step 6: Management Liability Insurance

Many new construction business owners don’t realise they can be personally sued for:

• WHS breaches
• Mismanagement
• Employee claims
• Fair Work allegations
• Subcontractor disputes

Management Liability Insurance protects the director(s) and the business itself.

This policy becomes essential as soon as you:

• Hire workers
• Begin managing subcontractors
• Take on commercial projects
• Handle WHS responsibilities

Step 7: Professional Indemnity Insurance (If You Give Advice or Design)

If your business provides:

• Plans
• Site layout advice
• Engineering input
• Project management
• Specification changes
• Surveying
• Inspections

…you may need Professional Indemnity Insurance.

Professional Indemnity Insurance protects your business from claims arising from advice or professional errors, even if you’re not officially an “engineer” or “designer.”

Step 8: Business Insurance Package (For Offices, Storage Sheds & Workshops)

If you operate from a workshop or commercial premises, consider a Business Insurance Package that covers:

• Contents
• Stock & materials
• Buildings
• Machinery
• Break-ins & vandalism
• Glass
• Money
• Portable tools

This is especially important if you store high-value items or materials at your office, orr shed.

Step 9: Review Contracts Before Starting Any Job

This is one of the most overlooked steps by new contractors.

Construction contracts often include clauses that make the subcontractor responsible for:

• All injuries onsite
• Damage caused by others
• Underground service strikes
• Delay costs
• Liquidated damages
• Indemnity for the builder

Before signing:
✔ Have the contract reviewed
✔ Ensure your insurance matches the contract requirements
✔ Check your policy limit is adequate

This protects you from claims that insurers may reject if the contract wasn’t disclosed.

Step 10: Partner With a Construction Insurance Specialist

A generalist broker may not understand complex construction risk.

A specialist construction insurance broker can:

• Review your contracts
• Recommend the right policies
• Help you meet builder/council requirements
• Avoid exclusions that could void your cover
• Assist you with claims
• Build a tailored package for your trade

Morgan Insurance Brokers works with:

• Builders
• Plumbers
• Civil construction contractors
• Earthmovers
• Electricians
• Carpenters
• Concreters
• All construction-related trades

Final Thoughts: Set Your Construction Business Up for Success

Starting a new construction business is exciting, but without the right insurance, one incident can shut down your operations before you even get off the ground.

By following this step-by-step insurance checklist, you can:
✔ Protect your assets
✔ Meet contract requirements
✔ Avoid uninsured losses
✔ Win bigger tenders
✔ Build long-term business stability

Need Insurance for Your New Construction Business?

Get advice from a specialist who understands the industry. Contact Morgan Insurance Brokers

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by lauren

Insurance Subcontractors Need Before Signing a Construction Contract

What Insurance Do Subcontractors Need Before Signing a Construction Contract?

In today’s construction industry, subcontractors are often required to sign detailed and sometimes onerous contracts before starting work. These agreements, especially those issued by Tier 1 builders, government bodies, and large commercial developers, can transfer significant risk onto you as the subcontractor.

Before you sign anything, it’s crucial to ensure you have the right insurance cover in place to protect your business, your workers, your machinery, and your financial security.

Below is a practical guide to the essential insurance policies subcontractors should have before agreeing to any construction contract.

Public Liability Insurance (Mandatory for All Subcontractors)

Public Liability Insurance protects your business if your work causes accidental injury to another person or damage to their property. This is the insurance most commonly required in subcontractor agreements.

However, and this is the part many contractors miss, not all Public Liability policies cover contractual liability.

Why this matters:

Construction contracts often include clauses such as:

• Indemnities
• “Hold harmless” agreements
• Liability assumed even when you’re not at fault
• Responsibility for all incidents on site
• Damage caused by other subcontractors

If your policy does not cover these expanded liabilities, your insurer can refuse to pay.

Before signing any contract:

✔ Check if your Public Liability includes Contractual Liability extensions
✔ Review height and depth limits
✔ Check underground services exclusions
✔ Ensure the policy limit meets contractual requirements ($10m, $20m, etc.)

Contract Works Insurance (Often Required for Builders & Trades)

Most construction contracts require subcontractors to carry Contract Works Insurance, especially for works involving structure alterations, renovations, civil works, or new builds.

More info: Contract Works Insurance

What Contract Works Insurance Covers:

• Damage to the project under construction
• Materials on site
• Fire, storm, theft, vandalism
• Collapse, accidental damage
• Tools and equipment (if added)

If your subcontract includes responsibility for the project works until handover, you must ensure your policy reflects that requirement.

Contractors Plant & Equipment Insurance

Civil construction businesses, earthmovers, plumbers, and builders often use:

• Excavators
• Skid steers
• Loaders
• Tippers
• Trailers
• Attachments
• Small plant & tools

These items are expensive to repair or replace, and construction sites are high-risk environments for theft and accidental damage.

Plant & Equipment Insurance covers:
✔ Theft
✔ Accidental damage
✔ Rollovers
✔ Transit damage
✔ Breakdown (optional)
✔ Hired-in plant obligations

If your contract states you are responsible for damage to hired machinery, this coverage is essential.

Workers Compensation (Required for Any Business With Employees)

If you employ staff, even just one labourer, you must hold Workers Compensation insurance.

Contracts often require proof before you can begin work onsite.

Management Liability Insurance

(Subcontractors Often Overlook This)

Many construction contracts include obligations around:

• WHS compliance
• Employment practices
• Subcontractor management
• Regulatory adherence

Management Liability Insurance protects the business owner and directors from claims relating to:
✔ WHS breaches
✔ Employee claims
✔ Mismanagement allegations
✔ Fines & penalties (where insurable)

This is becoming increasingly important as regulators crack down on construction safety.

Professional Indemnity Insurance (If You Provide Any Advice or Design)

If you provide or modify:

• Plans
• Engineering drawings
• Construction advice
• Surveying
• Design input
• Specification changes

…then you may be liable for errors in that professional advice, even if you're not a “designer.”

Professional Indemnity Insurance protects you from:
✔ Design errors
✔ Incorrect advice
✔ Project losses caused by your guidance
✔ Legal costs defending a claim

Contract Review: Why It’s Essential Before You Sign

Before signing any construction contract:

1. Read all indemnity and liability clauses
2. Check insurance requirements
3. Send a copy to your insurance broker for review
4. Ensure your policy limits and coverage match contract terms
5. Confirm your Public Liability includes contractual liability

Morgan Insurance Brokers can review your contract and insurance to ensure there are no dangerous gaps.

 

Final Thoughts: Protect Yourself Before You Sign

Subcontractor contracts are becoming more complex, and many include hidden clauses that shift significant liability onto you.
Before signing, ensure you have the correct insurance in place, especially Public Liability with Contractual Liability Insurance cover and Contract Works Insurance.

Getting this right can be the difference between a smooth project or a financially devastating claim.

Need Help Reviewing Your Contract or Insurance?

Morgan Insurance Brokers specialises in construction insurance and can ensure your policy aligns with your contract obligations.

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by lauren

Why Subcontractors Need Public Liability Insurance That Covers Contractual Liability

The Hidden Risk Inside Construction Contracts With Tier 1 Builders

In the construction industry, subcontractors regularly enter into agreements with Tier 1 builders and large commercial contractors. These contracts often include complex clauses that shift significant liability onto smaller subcontractors, even when they are not at fault.

For civil contractors, plumbers, builders, and trades signing into these agreements, the wrong insurance setup can leave your business dangerously exposed.

In this blog, we break down why Public Liability Insurance with Contractual Liability cover is essential and how it protects you when your contract places responsibility on you for incidents outside your control.

The Problem: Contracts Often Shift Liability Onto Subcontractors

It’s a common industry practice: Tier 1 builders insert clauses that make subcontractors responsible for all incidents on site, including those not caused by them.

Real Example:

A civil construction subcontractor signs a contract with a Tier 1 builder for a major commercial project.
Buried within the contract are onerous terms stating that the subcontractor is liable for any injuries that occur on the work site, regardless of who is at fault.

During the project, a site visitor is injured in an unforeseen accident.
The subcontractor followed every safety protocol.
They weren’t involved, weren't supervising the area, and didn't cause the incident.

But the contract says they are liable, so they are.

Without the correct insurance, the subcontractor could be forced to pay for:

• Medical costs
• Legal defence fees
• Compensation payouts
• Ongoing litigation expenses

These costs easily reach tens or hundreds of thousands of dollars.

Why Public Liability Insurance Matters

Public Liability Insurance protects subcontractors when their work causes accidental injury, property damage, or financial loss to others.

Learn more:
👉 Public Liability Insurance

But here’s the critical detail many subcontractors miss:

Most Public Liability policies do NOT automatically cover contractual liability.

If your contract says you’re responsible for incidents beyond your normal legal liability, your policy may refuse the claim unless you’ve disclosed and insured those obligations.

Contractual Liability Cover: Your Safety Net

A Public Liability policy with Contractual Liability extensions can protect you when:

• The contract transfers additional liability to you
• You sign indemnity clauses
• You agree to “hold harmless” the head contractor
• You become responsible for incidents you didn’t directly cause
• You must pay legal fees for claims you weren’t at fault for

Without this extension, your insurer may decline the claim, leaving you personally exposed.

Who Needs Contractual Liability Cover?

This applies to any trade that signs into construction contracts, including:

Civil Construction Contractors

High-risk environments, heavy machinery, and multi-contractor sites make liability exposure significant for civil contractors. When creating your civil construction insurance package, contractual liability should be considered.

Builders & Construction Companies

Many builder agreements include indemnities and unreasonable liability assumptions.

Plumbers & Trades Completing Contract Work

Subcontractors working under builders are often required to accept broad liability obligations.

Demolition & Excavation Contractors

High-risk worksites often contain strict insurance and liability requirements.

Why Contract Review Is Critical Before Signing

Before signing any construction contract, subcontractors should:

1. Have the contract reviewed (preferably by a solicitor or broker).
2. Identify any indemnity clauses or “hold harmless” wording.
3. Ensure your Public Liability Insurance policy matches the contract requirements.
4. Confirm you have Contractual Liability cover where needed.

This proactive approach reduces the risk of claim rejections and unexpected liability.

Final Thoughts

Construction contracts with Tier 1 builders often shift significant liability onto subcontractors, even when they’re not at fault. This makes Public Liability Insurance with Contractual Liability coverage absolutely essential for civil construction workers, plumbers, builders, and trades.

The right policy can protect your business from devastating financial losses and ensure your contract obligations are fully covered.

Need to Review Your Policy or Contract?

Morgan Insurance Brokers specialises in construction insurance and can help you ensure your coverage aligns with your contractual obligations.

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by lauren

How Much Does Builders Insurance Cost in Australia?

Builders insurance can vary widely in price depending on the type of work you do, the size of your projects, and the risks you face on-site. Because no two building businesses are the same, understanding the typical cost ranges and the factors that influence them is essential before choosing the right policy.

Below, we break down the average costs, what affects your premium, and how Morgan Insurance Brokers helps builders secure competitive, tailored insurance for builders.

What Types of Insurance Do Builders Usually Need?

Builders generally require several core types of insurance, each priced differently:

• Public Liability Insurance

Protects against third-party injuries or property damage caused by your work.

• Contract Works Insurance

Covers accidental damage to the building project during construction.

• Tools & Equipment Insurance

Protects your tools and gear from theft or damage.

• Plant & Machinery Insurance

Covers machinery such as excavators, bobcats, trailers and other heavy equipment.

• Commercial Vehicle or Ute Insurance

Covers vehicles used for work.

Depending on your business, you may also need Professional Indemnity, business insurance, or builders warranty (depending on location and project type).

How Much Does Builders Insurance Cost?

While prices vary, here are general cost indicators for builders in Australia:

Public Liability Insurance

Public Liability Insurance can cost from around $700 to $2,500 per year, depending on your turnover, project types, and required limit ($5M, $10M, or $20M).

Contract Works Insurance

Pricing varies significantly because it depends on project value.
Typical contract works insurance ranges from $1,000 to over $10,000, depending on whether you insure single projects or take out annual cover.

Tools & Equipment Insurance

Usually $300 to $900 per year, depending on tool value and security measures.

Plant & Machinery Insurance

Pricing depends on the machinery value.
Small items: from $400 annually
Larger equipment: can range into the thousands.

Commercial Vehicle Insurance

Typically $900 to $2,500 per vehicle, based on usage, location and vehicle type.

What Affects the Cost of Builders Insurance?

Several factors influence your premium:

• Type of building work you perform

High-risk trades or structural work generally cost more.

• Annual turnover

Higher turnover usually means higher exposure.

• Project size and contract values

Larger or more complex builds have higher risks.

• Location of work

Certain areas may have higher theft, weather or liability risks.

• Claims history

A clean history often results in better pricing.

• Required cover limits

Higher liability limits (e.g., $20M) increase premiums.

Because every building business is different, personalised quotes are essential for accurate pricing.

How Morgan Insurance Brokers Helps Builders Save Money

Morgan Insurance Brokers specialises in helping builders understand their risks and secure policies that suit their business needs and budget. By assessing the type of projects you work on, the equipment you use, and the risks you face, we ensure your insurance is correctly structured without unnecessary extras.

We handle the entire process, from reviewing your current cover, identifying gaps, explaining what you actually need (in plain language), and securing competitive premiums. If something goes wrong, we also assist with claims, helping you get the best possible outcome quickly and stress-free.

Why Builders Shouldn’t Choose Insurance Based on Price Alone

Cheapest doesn’t always mean best. Builders rely on insurance to protect:

• The property under construction
• Their tools and machinery
• Their business reputation
• Their legal liability
• Their ability to keep working

Inadequate cover can end up costing far more than the premium saved.

Morgan Insurance Brokers are construction insurance specialists and will ensure your policy actually protects you where it matters.

Get a Builders Insurance Quote

If you're a builder in Australia looking for competitive, tailored insurance, Morgan Insurance Brokers can help.

Get a fast builders insurance quote today and protect your next project with confidence.

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by lauren

Who Needs Public Liability & Contract Works Insurance?

Public Liability Insurance and Contract Works Insurance are two of the most important types of protection for anyone working in the construction industry. Construction sites involve multiple trades, expensive materials, complex equipment, and constant safety risks — meaning even a small incident can lead to a costly claim.

Because of this, most workers, contractors, and businesses within the construction sector will need one or both of these policies to operate safely, legally, and contractually.

In this guide, we break down exactly who needs Public Liability and who needs Contract Works Insurance, and why each type of cover matters.

Why These Policies Are Essential in Construction

• Public Liability Insurance protects you if your work causes injury to another person or damage to someone else’s property.
• Contract Works Insurance protects the actual project under construction, including materials, structures, and work in progress.

They cover completely different risks — which is why many builders, tradies, and contractors require both.

1. Builders

Builders face some of the highest risks on a construction site and almost always need both types of cover.

Why Builders Need Contract Works Insurance

• Protects the building project during construction
• Covers theft of materials, fire, storm damage, vandalism and accidental damage
• Required for many residential and commercial building contracts

Why Builders Need Public Liability Insurance

• Covers injury to visitors, clients, subcontractors, and inspectors
• Protects against accidental property damage (e.g. damaging a neighbour’s fence or underground pipes)
• Often required for licensing, tenders and council approvals

Builders working on any type of project — new homes, renovations, extensions, or commercial fit-outs, benefit from having both policies.

2. Tradies

Tradies rely heavily on Public Liability Insurance as part of their everyday work.

Public Liability for Tradies

Electricians, plumbers, carpenters, tilers, painters, plasterers, landscapers, and other trades regularly interact with clients, property, and equipment, making liability protection essential.

Examples of common claims:

• Water damage caused by a plumbing installation
• Electrical faults causing damage
• Accidental damage to flooring, walls, or fixtures
• Injuries caused by tools or equipment left on-site

When Tradies Need Contract Works Insurance

Tradies who take on larger jobs, manage their own projects, or perform structural work may need Contract Works Insurance as well — especially if they are the principal contractor.

3. Subcontractors

Most subcontractors are required to hold Public Liability Insurance before they can even step onto a job site.

Why Subcontractors Need Public Liability

• Principal contractors are legally and contractually required to minimise risk
• Subcontractors often work around other trades, increasing chances of third-party damage or injury
• Many contracts will not allow subcontractors on-site without proof of cover

Do Subcontractors Need Contract Works Insurance?

Yes — depending on the job.
If a subcontractor is responsible for a section of the works, materials, or project delivery, Contract Works Insurance may be required.

4. Owner Builders

Owner builders face unique risks because they take responsibility for their own construction project.

Why Owner Builders Need Contract Works

• Covers damage to the building project
• Protects materials on-site
• Required by councils, lenders and building certifiers in many cases

Why Owner Builders Need Public Liability

• Covers injuries to visitors, neighbours, delivery drivers, or tradespeople
• Protects against accidental damage to surrounding property

Many owner builder projects cannot proceed without both types of cover.

5. Civil Contractors

Civil contractors work on large-scale projects such as:

• Roads
• Earthworks and excavation
• Drainage and utilities
• Subdivisions
• Infrastructure projects

These environments naturally involve heavy machinery, multiple civil trades, and large project values.

Why Civil Contractors Need Both

• Contract Works: Protects the works under construction
• Public Liability: Covers third-party damage (e.g., hitting underground services, damaging vehicles, injuring pedestrians)

The risk level in civil construction makes both policies fundamental.

6. Construction Companies

Construction companies, from small building firms to large commercial contractors often hold packaged solutions covering the entire business.

Typical Package Includes:

• Public Liability
• Contract Works
• Tool & Equipment Insurance
• Plant & Machinery Cover
• Commercial Vehicle or Fleet
• Professional Indemnity
• Business Insurance (office contents, stock, mobile equipment)

For companies with multiple sites or projects, bundling these policies together ensures smoother management and cost efficiency.

 

Final Thoughts: Do You Need Public Liability, Contract Works, or Both?

Most construction professionals need both policies at some point, especially when managing projects, working as the principal contractor, or entering into formal contracts or tenders.

Together, they form a complete risk protection package:

• Contract Works → Protects the project
• Public Liability → Protects you from being sued

Get the Right Cover for Your Construction Business

Whether you’re a builder, tradie, subcontractor or civil contractor, we can tailor a construction insurance package that protects your project, your tools and your business.

Get a fast, competitive quote today, and speak with a broker who truly understands the construction industry.

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by lauren

Does Contract Works Insurance Cover Public Liability Insurance?

No — Contract Works Insurance and Public Liability Insurance are two separate types of cover. Contract Works protects the building project itself, while Public Liability Insurance protects you against third-party injury or property damage claims. Although they are different policies with different purposes, you can choose to purchase them either together as part of a combined construction insurance package, or separately if that’s more cost-effective for your business. Even when bundled, they still remain distinct types of cover, one does not replace or include the other.

What Is Contract Works Insurance?

Contract Works Insurance is designed to protect a construction project while it is being built. It provides cover for unexpected events that may damage, delay, or interrupt the works, ensuring the project can be completed without financial loss to the builder, contractor, or property owner. This type of insurance is essential for anyone involved in construction, from small residential builders to large commercial contractors.

Contract Works Insurance typically covers:

Accidental Damage to the Construction Project

Protection for sudden and unforeseen physical loss or damage during the build, whether caused by human error, equipment malfunction, or on-site mishaps.

Fire, Storm, Vandalism & Other Insured Events

Cover for weather-related events, malicious damage, or other external forces that could impact the progress of the project.

Theft of Materials or Building Items On-Site

Construction sites are frequent targets for theft. This cover protects materials, fittings, fixtures, and other items used in the project (excluding tools unless added separately).

On-Site Risks During the Build

This includes risks such as collapse, water damage, or accidental damage caused by subcontractors, employees, or external parties.

Optional Cover for Tools, Machinery, or Equipment

You can extend the policy to include portable tools, plant and equipment, scaffolding, temporary structures, and other essential machinery. This is particularly useful for tradies and contractors who rely on specialised gear.

What Does Public Liability Insurance Cover?

Public Liability Insurance is one of the most important forms of protection for anyone working in the construction industry. It covers you if your work causes accidental injury to another person or damage to their property. Because construction sites involve heavy machinery, multiple trades, subcontractors, and unpredictable environments, the risks are significantly higher, making this cover essential and often mandatory.

Public Liability Insurance typically covers:

Damage to Third-Party Property

If your work accidentally damages someone else’s property, such as a client’s home, neighbouring structures, vehicles, or utilities. Public liability insurance covers the cost of repair or replacement. In construction, even small mistakes can lead to expensive damage, so this protection is crucial.

Injury to Others Caused by Your Work

Construction sites pose hazards to clients, visitors, inspectors, delivery drivers, and other contractors. If someone is injured because of your work or activities on-site, public liability covers medical costs, compensation, and associated expenses.

Legal Fees and Defence Costs

If a claim is made against you, even if you were not at fault, you may need legal representation. Public liability insurance covers the cost of defending the claim in court, settlements, and other legal expenses, preventing the financial strain of paying these costs yourself.

Required for Most Construction Contracts and Licensing

Builders, tradies, subcontractors, and head contractors are often required to hold public liability insurance before stepping onto a site. Many construction contracts, tenders, and licensing bodies (including QBCC and similar state authorities) require proof of cover, usually with minimum limits such as $5 million, $10 million, or $20 million.

Why Contract Works Insurance Does Not Include Public Liability

Although Contract Works Insurance and Public Liability Insurance are often purchased together, they are not the same type of cover, and one does not automatically include the other. Insurers treat these as separate policies because they protect against very different types of risks.

They Cover Completely Different Types of Risk

Contract Works Insurance protects the construction project itself — the materials, structure, and work in progress.
Public Liability, on the other hand, covers you if your work causes injury to another person or damage to third-party property. Because these exposures are so different, insurers classify them as separate policies.

Public Liability Claims Can Be Very Large

Public liability incidents can involve serious injury, long-term medical costs, or major property damage. These claims can reach hundreds of thousands, even millions of dollars.
For this reason, insurers keep Public Liability Insurance separate so they can correctly assess and price the risk on its own.

Construction Licensing and Contracts Usually Require Both

Most builder licences, subcontractor agreements, principal contractor contracts, and government tenders require you to hold both types of cover.
Contract Works is often needed to protect the project, while Public Liability is needed to protect the people and property around it.

You Must Purchase Public Liability Separately or as Part of a Package

Even if you buy Contract Works Insurance, public liability is not automatically included. You must either:

• Purchase Public Liability as a standalone policy, or

• Bundle it together with Contract Works in a combined construction insurance package

Even when offered together, they are still distinct policies, each with its own limits, exclusions, and pricing.

Do You Need Both Contract Works and Public Liability?

Yes, most builders, tradies, and contractors need both types of cover. Each policy protects against very different risks, and together they provide a more complete level of protection for anyone working in the construction industry.

Contract Works Insurance → Protects the Construction Site

Contract Works covers the actual project under construction, including the materials, structure, and work in progress. It responds to events like accidental damage, fire, vandalism, theft of materials, or weather-related losses.
In simple terms: it protects the job itself.

Public Liability Insurance → Protects You From Being Sued

Public Liability covers you if your work causes injury to another person or damage to third-party property. This includes clients, visitors, inspectors, delivery drivers, and other contractors on-site.
In short: it protects your business from costly legal claims.

When Are Both Policies Required?

In construction, it’s extremely common and often mandatory to hold both types of cover at the same time. They are frequently required for:

• Principal Contractor Agreements

Most head contractors require subcontractors to hold both Contract Works and Public Liability before being allowed on-site.

• Residential and Commercial Building Projects

Property owners, developers, and insurers for major projects usually insist on both forms of insurance to minimise risk.

• QBCC Licensing (if applicable)

Certain licences and project types require Public Liability and/or Contract Works coverage to meet regulatory and financial requirements.

• Council Work

Local councils generally require contractors and subcontractors to show proof of Public Liability and, depending on the project, Contract Works Insurance.

• Government Tenders

Government contracts almost always require both types of insurance, often with minimum limits such as $20M.

Here is an expanded, polished version you can place on your website. It’s clear, authoritative, and SEO-friendly.

Who Needs Public Liability & Contract Works Insurance?

Public Liability and Contract Works Insurance are essential for a wide range of professionals in the construction industry. Because construction sites involve multiple trades, expensive materials, heavy machinery and constant safety risks, most people working on a project will need one or both forms of cover.

Builders

Residential and commercial builders need Contract Works to protect the project itself and Public Liability to cover injury or property damage caused during construction.

Tradies

Electricians, plumbers, carpenters, tilers, painters, and other trades rely on Public Liability every day. Those who take on their own jobs or small projects may also need Contract Works cover.

Subcontractors

Most principal contractors require subcontractors to hold both Public Liability and, depending on the job, Contract Works Insurance before stepping onto a site.

Owner Builders

Owner builders managing their own construction or renovation projects often need Contract Works Insurance to protect the building works, and Public Liability to cover third-party risks.

Civil Contractors

Civil contractors working on infrastructure, earthworks, subdivisions, and major projects face high-risk environments and typically require both policies.

Construction Companies

Medium and large building companies often package both types of insurance together, along with plant, machinery, vehicles, and professional indemnity.

Project Managers

Construction project managers may require Public Liability for business activities and may also arrange Contract Works cover on behalf of clients or builders.

How to Buy Contract Works and Public Liability Insurance Together

Many construction businesses prefer to purchase both Contract Works and Public Liability as part of a combined construction insurance package. This is often the most convenient and cost-effective option.

Combined Construction Insurance Packages

Insurers can bundle both policies into a single package, making it easier to manage your cover, renewals, and claims. While they remain separate types of insurance, they sit under one combined policy structure.

Often Cheaper When Purchased Together

Bundling your construction insurance is often more affordable than buying each policy individually. Insurers may apply package discounts when multiple covers are combined.

Can Include Additional Covers

A combined construction insurance package can also include other essential policies such as:

• Tools and equipment insurance
• Plant and machinery cover
• Commercial vehicle or ute insurance
• Professional indemnity insurance
• Business pack cover
• Workers compensation (where required by law)

This allows builders, tradies, and construction companies to protect all aspects of their operations under one streamlined policy.

What We Do for Construction Businesses

At Morgan Insurance Brokers, we are construction insurance specialists. We help builders, subcontractors, owner-builders and tradies by:

• Advising on what cover you need (e.g., contract works, public liability, tools & equipment)

• Structuring combined packages that suit your project scale and risk exposure

• Ensuring you meet contract requirements, licensing needs or tender prerequisites

• Reviewing your cover year-on-year to keep it up to date as your business grows

Whether you’re a builder, tradie,  or subcontractor, we can tailor a package that fits your project.

Get your construction insurance quote now.

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by lauren