Contractors face risks when working on construction projects. These risks can be mitigated by contract works insurance. Contract works insurance protects contractors and subcontractors from loss or damage to their property during a project. Contractors can take out this cover as part of a combined building and contents policy, or separately as an add-on. Contract works insurance is available only through specialist brokers.
What does Construction Work Insurance cover?
Construction works insurance covers for loss or damage to the property of others, clients, employees or third parties. It also covers for injury or death to employees or contractors. It further protects against damage or injury caused by employees or contractors on a job site or damage caused by faulty materials that you supply. It also covers you against liability claims for injuries on job sites. Finally, it covers any damage to, or loss of property, both your own and that of third parties at a job site.
When should you take out Contract Work Insurance?
Contract works insurance can cover a variety of risks on a construction project. When starting a new project, if there are problems with any aspect of the work, for example, delayed payments, then some of those costs can be covered by insurance. When taking on larger jobs contract works insurance can help ensure that everything is carried out correctly without risk of delay due to lack of funds during construction. When you work with new clients, they will know that they are protected against issues arising during construction, and won’t have to worry about payments for damages or delays.
What are the different aspects of contract works insurance?
Contract works insurance offers cover for several potential risks. These include comprehensive cover for any damage to the assets or premises of clients. It also includes liability cover should you cause damage to the property of a third party or injure them. It further provides content cover for any items on a job site, such as tools and equipment that belong to clients. It also includes personal accident cover in case of any injury to you, your employees, or contractors. It will also cover medical expenses and loss of income if anyone is unable to work while they recover from an accident or illness that occurs on the job site. Finally, it includes public liability insurance, to protect against claims made by third parties who are injured due to your actions or those of members of your staff while completing a contract.
Why do tradesmen need contract works insurance?
Contract works insurance provides protection when you are employed to carry out work on a building, land, or other structure. This could be a new house, an extension, a garage or even a commercial building. As an independent contractor, if you are hired to work on such a project, then this is also covered by contract works insurance. Contractors engaged for a new build may also need this kind of insurance, especially if they create the designs for the building, as they risk losing their investment if it is damaged during construction.
Jim Pullman has extensive knowledge and experience in Home Building, Construction, and Design. He writes articles in his free time and partners with content creators to share his expertise with the online community.