A Complete Guide to Contract Works Insurance: What It Covers, Who Needs It & How to Get Protected

When you work in the building and construction industry, every project carries risk. Whether you’re building a new home, renovating a kitchen, pouring concrete, or installing plumbing, unexpected events like fire, theft, storm damage or accidental loss can cause major financial setbacks.

That’s where Contract Works Insurance comes in.

This guide breaks down what contract works insurance is, who needs it, what it covers, what to consider before buying it, and why using a broker, especially Morgan Insurance Brokers can save you serious money and stress.

What Is Contract Works Insurance?

Contract Works Insurance protects builders, tradespeople, and subcontractors from loss or damage to a construction project during the build phase.

If something goes wrong, fire, theft, storm, vandalism, accidental damage, materials stolen on-site this policy ensures you’re not left footing the bill.

What Contract Works Insurance Covers

While policies can vary, most contract works policies include:

✔ Damage to the construction project

Including:

• Fire
• Storm
• Flood (if included)
• Water damage
• Vandalism
• Malicious damage
• Accidental damage
• Collapse

✔ Materials, fixtures, and fittings

Whether already installed or stored on-site.

✔ Theft of building materials

If you store materials on-site or off-site, they can be covered under the policy.

✔ Tools and equipment (optional add-on)

Tools are usually covered separately, so you may add:

• Theft of tools
• Accidental damage
• Items stored in vehicles or on-site

✔ Public Liability (optional add-on)

Protects you if:

• You injure someone
• You damage someone’s property
• You’re sued by a third party

Often included as part of a combined Contract Works & Public Liability policy.

✔ Items in transit (optional)

Covers materials and equipment being transported from your premises to the job site.ws

Who Actually Needs Contract Works Insurance?

Any trade or business involved in construction, renovation, or structural work can need contract works insurance. This includes:

Common occupations that require or benefit from Contract Works Insurance:

• Builders
• Carpenters
• Plumbers
• Electricians
• Formworkers
• Concreters
• Bricklayers
• Scaffolders
• Landscapers
• Roofers
• Tilers
• Cabinetmakers
• Shopfitters
• Renovation specialists
• Labourers / subcontractors
• Project managers / construction managers
• Civil contractors

Occupations that may still need it depending on the job:

• Handymen
• Painters
• Plasterers
• Fencers
• Flooring installers
• Pool builders
• Solar installers

If you’re involved in building, modifying, or installing something on a client’s site, you may be responsible for it until handover.

Are You Contractually Responsible to Insure the Site?

Many builders and trades don’t realise this:

If the site catches fire during construction, who pays?

You might think:
“It’s not my fault—why would I pay?”

But legally and contractually:

Most clients expect the builder or contractor to insure the works.

And most contracts (like HIA and QBCC contracts) clearly state that the builder must insure the project until completion/hand-over.

So if:

• A fire destroys the frame
• A storm damages partially built works
• A thief steals materials
• Vandalism destroys newly installed items

You may be responsible for the cost.

Contract Works Insurance ensures you don’t have to pay out-of-pocket.

Key Questions to Ask Yourself Before Buying a Policy

1. Is your client expecting you to insure the project?

Check your contract.
Most clients assume you will.

2. Do you want cover for fire, storm, accidental damage?

Vital for projects of any size.

3. Do you want cover for theft of your materials?

If you store materials on-site, theft cover is essential.

4. Do you want cover for theft of your tools?

Tools are the #1 most stolen item from worksites.
A tool insurance add-on can save thousands.

5. Do you need public liability included?

Many contractors choose a combined Public Liability + Contract Works package.

6. Do you need items in transit covered?

Especially important if you transport:

• Materials
• Tools
• Machinery

How to Obtain Contract Works Insurance

There are three ways:

1. Directly from an insurer

But you may get:

• Limited coverage
• Higher premiums
• No advice
• No help at claim time

2. Online platforms

Convenient, but risky if you don’t understand the policy wording.

3. Through an insurance broker (the best option)

A broker can:

• Compare multiple insurers
• Negotiate pricing
• Tailor the cover to your trade
• Ensure you meet contract requirements
• Help you at claim time

Why Using a Broker Is the Smartest Choice

Insurance policies are full of exclusions and tricky clauses.

A professional broker:

• Makes sure your contract works policy is compliant
• Ensures you won’t accidentally breach your contract with the client
• Recommends the right levels of cover
• Helps you avoid paying for things you don’t need
• Manages claims and fights on your behalf

Why Morgan Insurance Brokers Is the Best Choice

Morgan Insurance Brokers specialises in construction insurance. Here’s why clients trust us:

✔ We compare quotes from multiple insurers

Not just one.

✔ We understand builder and trades contracts

We make sure your policy matches your legal obligations.

✔ We tailor policies to your exact trade

No generic cover, you get what you need.

✔ We manage claims for you

You’ll never deal with an insurer alone.

✔ We save you time and money

So you can focus on the job, not paperwork.

✔ We give tradespeople the cover they actually need

Not unnecessary add-ons.

Conclusion: Protect Your Work, Your Tools, and Your Business

Contract Works Insurance isn’t just another box to tick, it protects your livelihood.

Whether you’re a builder, concreter, carpenter, plumber, or any other trade, the risks are real:

• Fire
• Storm
• Theft
• Accidental damage
• Vandalism

One incident could cost tens or hundreds of thousands.

With the right policy in place and the right broker your project, equipment, and reputation are protected.