When you’re working in construction, whether you’re a builder, contractor, tradie, or developer, protecting your project from unexpected loss or damage is essential. Contract Works Insurance is designed to safeguard the physical building works, materials, and equipment that form part of a construction project. But choosing between Single Contract Works and Annual Contract Works can be confusing, especially if you handle a mix of different types of jobs throughout the year.

This guide explains what Contract Works Insurance is, the difference between the two types of cover, what kind of projects you’d insure, and how a broker like Morgan Insurance Brokers can help you choose the right structure.

What Is Contract Works Insurance?

Contract Works Insurance (which is a form of Construction Insurance) protects construction projects against:

• Accidental damage to the works
• Fire, storm, flood (depending on insurer)
• Theft of building materials
• Vandalism
• Collapse
• Damage during transportation or temporary storage
• Third-party property damage or personal injury (when public liability insurance is included)

It’s essential cover that ensures your building project can continue, even if something unexpected goes wrong.

What Types of Projects Would You Insure?

You would typically insure any construction project where you’re responsible for the works, including:

• New home builds
• Home extensions, renovations, and alterations
• Commercial construction
• Residential developments
• Fit-outs and shopfitting
• Civil works
• Pools and landscaping
• High-value or bespoke builds
• Projects where the principal or contract requires it

If the value, complexity, or contractual obligations are significant, Contract Works cover becomes even more important.

Single Contract Works vs Annual Contract Works

Both forms of Contract Works Insurance serve the same core purpose: to protect the project during the construction period.
The key difference is in how and when they apply.

Single Contract Works Insurance

Best for: One-off, unique, or high-risk projects

Single Contract Works Insurance covers one specific project only, from start to finish. You select the exact project address, value, duration, and risk profile.

Why choose Single Contract Works?

✔ You only want cover for one project
Ideal for contractors who build occasionally or take on one major project per year.

✔ The project is unusual or high-risk
Some projects don’t fit the risk appetite of your annual insurer, for example:

• Basements
• Demolition
• Multi-storey additions
• High-value architectural builds
• Flood-prone locations
  In these cases, placing the project separately avoids affecting your main annual policy.

✔ Higher excesses are acceptable or required
High-risk projects may require higher excesses. Instead of increasing your entire annual excess, you can isolate the project under a standalone policy.

✔ Your current annual policy can’t cover the project
Some insurers have strict underwriting rules. If your annual provider declines or limits the job, a single contract works policy is a clean solution.

Who typically chooses single project cover?

• Custom home builders
• Developers doing a one-off build
• Owner-builders
• Contractors handling one large project at a time
• Builders taking on a unique or complex job

Annual Contract Works Insurance

Best for: Builders completing multiple projects per year

Annual Contract Works Insurance covers all projects undertaken within a 12-month period, up to a chosen maximum contract value and turnover.

Why choose Annual Contract Works?

✔ You complete multiple projects per year
No need to arrange a new policy every time.

✔ It’s often more cost-effective
Australian insurers usually apply a cheaper rate when cover is structured annually rather than per project.

✔ Simpler administration
One policy, one premium, one renewal.

✔ Covers projects automatically (up to set limits)
As long as your jobs fall within your declared range (e.g., project values, type of works), they are covered without needing individual approval.

✔ Flexible coverage for variations
Construction often involves changes. Annual cover generally adapts more easily.

Who typically chooses annual cover?

• Volume home builders
• Renovation builders
• Commercial building companies
• Civil contractors
• Trade businesses completing several projects regularly

What Are the Differences in Cover?

Both types provide similar base protection, but some differences exist across insurers:

Feature	Single Contract Works	Annual Contract Works
Coverage basis	One specific project	All projects within 12 months
Premium	Based on single contract value	Based on annual turnover & project limits
Rate	Usually higher	Usually cheaper overall
Underwriting flexibility	Very flexible; tailored to the project	More standardised
Project approval	Required for each standalone policy	Automatic cover (within limits)
Excess	May vary per project	Generally consistent

Coverage may differ between insurers especially for storm, flood, or defective workmanship extensions.

How a Broker Helps You Choose the Best Structure

Why Work With Morgan Insurance Brokers?

Choosing between single and annual Contract Works Insurance isn’t just about cost—it’s about risk, compliance, and practicality.

A broker like Morgan Insurance Brokers can help you:

✔ Analyse your pipeline and determine the most cost-effective option

They’ll compare whether insuring each project separately or using an annual structure will give you better value.

✔ Identify insurer limitations that may affect your jobs

Some insurers won’t cover certain project types. A broker can source alternatives quickly.

✔ Ensure you meet contract requirements

Government, developers, and principals often have strict insurance obligations. Morgan Insurance Brokers makes sure you are compliant.

✔ Tailor coverage to the project

Higher-risk or specialised jobs can be placed separately so they don’t impact your annual premium.

✔ Navigate claims and contract disputes

Expert claims support means less stress and faster resolution.

✔ Access a network of specialist construction insurers

Better coverage, competitive premiums, and expert advice.

Final Thoughts: Single vs Annual, Which Is Better?

The right choice depends on your business model:

Choose Single Contract Works if:

• You only need cover for one project
• The project is complex, high-risk, or unusual
• Your annual insurer cannot cover it
• You want to isolate the risk from your main policy

Choose Annual Contract Works if:

• You handle multiple projects throughout the year
• You want simplicity and automatic cover
• You want a cheaper rate overall
• You want consistent excesses and easier administration

If you’re unsure which structure is right for you, Morgan Insurance Brokers can assess your project pipeline, insurer appetite, and risk profile to determine the most cost-effective and suitable option.