Contract Works insurance covers the works themselves and in general ‘new works and/or the materials’.

If this cover type is being considered for purchase, it is more than likely that there is a Contractors Combined policy in place. Whilst Contract Works insurance can be purchased in isolation, it would certainly be a good idea to investigate if the existing policy can be extended to accommodate additional requirements.

In the event that the relevant contract motivating an interest in this cover type is complex, a policy in isolation may well work out to be the most applicable cover solution.

A Contract Works policy will cover the works but not the existing structure. Generally, in the event that anything happens to ‘new works and/or the materials’ before completion, the contractor will be held responsible. This situation will of course be dependent upon contractual obligations and agreements arranged prior to the commencement of works.

Standard cover items under a Contract Works policy will include:

  • Theft
  • Storm
  • Flood
  • Fire

In addition, the following simple policy extensions can be included:

  • Owned machinery, plant and temporary site huts
  • Hired in plant and machinery
  • Employees’ equipment (hand tools)

Beyond the above, there are many more technical cover extensions that can be incorporated within a Contract Works policy.

It may be that such extensions will need to be written into the policy on a full time basis to compliment the average contract offered. However, a specific extension may be required on a one off basis to satisfy an individual contract which is being tendered. The safest way to make certain that contractual obligations are complied with is to provide us with a copy of the contract to ensure that the terms provided are appropriate.

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