What Does Contract Works Insurance Cover?

In the dynamic and often unpredictable world of construction, Contract Works Insurance serves as a safety net, protecting builders and tradesmen from potential financial losses arising from unforeseen incidents.

This comprehensive cover is designed to safeguard ongoing construction projects, ensuring that your business can weather any storm. In this article, we delve deeper into the specifics of contract works insurance, its scope, exclusions, and its indispensable role in your business.

In the construction industry, every project carries a certain level of risk. From natural disasters to theft and vandalism, numerous unforeseen incidents can disrupt your work and lead to significant financial loss. Contract works insurance is designed to mitigate these risks, providing financial protection that allows your business to continue operations even in the face of adversity.

What is Contract Works Insurance?

Contract Works Insurance, also known as Contractors All Risk Insurance, is a specialised insurance cover designed to protect ongoing construction projects from a wide range of risks. It covers the cost of repairing or redoing work on a construction site following an insured event such as fire, flood, storm, vandalism, or theft.

The Necessity of Contract Works Insurance

Imagine you’re halfway through a construction project when a severe storm hits, causing extensive damage to the work you’ve completed so far. Without Contract Works Insurance, you’d have to bear the cost of repairing the damage and redoing the work out of your own pocket. With Contract Works Insurance, you’re covered for these costs, ensuring that your business can recover and continue operations.

The Scope of Contract Works Insurance

Damage to On-Site Works

One of the primary aspects of Contract Works Insurance is its coverage for damage to on-site works. This includes any part of the construction project that is damaged or destroyed by an insured event. For example, if a part-finished building is destroyed by fire, your insurance policy would cover the costs of rebuilding the structure to its previous state.

On-Site Plant and Equipment

In addition to covering the construction work itself, Contract Works Insurance also provides coverage for on-site plant and equipment. This means that if your machinery or equipment is damaged or destroyed during the course of construction, your insurance policy can cover the costs of repair or replacement. This is particularly important for businesses that rely heavily on expensive machinery and equipment.

Existing Structures

When working on an extension or renovation project, any damage caused to the existing structures should be covered by the insurer of the existing structure.  This will either be the home insurer (for private domestic work) or the property owners insurer (for work or properties leased or rented). This ensures that the customer is protected if there were to be damage to the existing structure – unless that damage is caused by you in which case it would be considered under the public liability insurance section.

Third-Party Property Damage

In the course of construction work, there’s always a risk of accidentally causing damage to a third-party property. Contract Works Insurance covers this risk, ensuring that you’re protected against the financial implications of such incidents.

Employee’s Tools and Personal Effects

Construction sites can be targets for theft, and losing valuable tools and equipment can be a significant setback for your business. Contract Works Insurance can cover the cost of replacing employees’ tools and personal effects if they’re stolen from the site, providing additional peace of mind for both you and your employees.

What’s Not Covered by Contract Works Insurance?

While Contract Works Insurance provides comprehensive coverage, it’s important to understand its limitations. For instance, it doesn’t cover damage to any existing structures on the site that aren’t part of the ongoing work. Your client’s home insurance should cover this instead. Additionally, it won’t cover any damage that’s a result of poor workmanship or design. It’s also worth noting that Contract Works Insurance doesn’t cover any tools or equipment that are left unsecured or unattended.

Choosing Your Cover

When choosing your Contract Works Insurance, it’s crucial to consider the total cost of your largest project, including labour and materials. This will help you determine the level of cover you need. It’s also important to consider the specific risks associated with your line of work. For instance, if you frequently work on high-risk projects or in areas prone to natural disasters, you may need a higher level of cover.

Tailoring Your Cover to Your Needs

Every construction project is unique, and so are the risks associated with it. That’s why it’s crucial to tailor your Contract Works Insurance to your specific needs. Consider factors such as the nature of your projects, the value of your equipment, and the potential risks you face. This will help you choose a policy that provides the right level of protection for your business.

Contract Works Insurance with Tradesman Saver

At Tradesman Saver, we understand the unique risks faced by tradesmen and builders. That’s why we offer tailored Contract Works Insurance policies that provide the coverage you need to protect your business. Whether you’re working on a small renovation or a large construction project, our Contract Works Insurance has you covered.

Comprehensive Coverage with Tradesman Saver

Our Contract Works Insurance policies are designed to provide comprehensive coverage for a wide range of risks. From damage to on-site works and plant equipment to third-party property damage and theft of tools, we’ve got you covered. Our policies also include coverage for existing structures, ensuring that you’re protected if your work causes damage to the existing property, but only for the portion of the existing property you are working on.  The client will need a home insurance policy to cover an existing home for example.  Your contract works cover would provide cover for the extension you are building to the home plus damage to the existing property caused by these works.

Expert Advice and Support

Choosing the right insurance cover can be a complex process, but you don’t have to navigate it alone. Our team of insurance experts is here to guide you every step of the way, helping you understand your coverage options and choose the policy that’s right for you. We’re committed to providing you with the support you need to make informed decisions about your insurance coverage.

To learn more about our contract works insurance, visit our website or get in touch with our team today.

For Contract Works Insurance You Can Rely On, Make Sure It’s Tradesman Saver

Contract Works Insurance is a vital cover for any tradesman or builder. It provides protection for your ongoing work against a range of risks, giving you peace of mind to focus on what you do best – building and creating. With Tradesman Saver, you can be confident that you’re protected, no matter what happens.

In the construction industry, peace of mind is priceless. Knowing that you’re protected against potential financial losses allows you to focus on your work, confident in the knowledge that you’re covered if anything goes wrong. With Contract Works Insurance from Tradesman Saver, you can enjoy this peace of mind, knowing that you’re protected against a wide range of risks.

At Tradesman Saver, the UK’s leading provider of public liability insurance, we’re committed to helping you protect your business. Our Contract Works Insurance policies are designed to provide comprehensive coverage for a wide range of risks, ensuring that you’re protected no matter what happens. With our expert advice and support, you can choose the coverage that’s right for you and enjoy the peace of mind that comes with knowing you’re protected.