Contract Works

Why contract works insurance is complex

Contract works insurance is uniquely complex because the policy structure is dictated by the construction contract, not just the insured's preference. Different contract forms create different insurance obligations:

Under AS4000, the principal typically arranges contract works insurance. Under AS4902 (Design and Construct), the contractor may be required to arrange cover. Under bespoke head contracts, the insurance obligations can be anything the parties negotiate. And subcontract agreements create a further layer of complexity around who is covered under whose policy.

Most mid-market contractors operate under multiple contract forms simultaneously — which means their contract works insurance program must satisfy different requirements for different projects at the same time.

What risks we manage

Annual contract works policies — covering all projects undertaken during the policy period under a single program, eliminating the need for project-by-project arrangements.

Project-specific policies — for major projects where the contract requires dedicated cover or where the risk profile warrants individual placement.

Principal-arranged insurance — where the principal arranges cover and the contractor is a named insured, we review the policy to ensure your interests are adequately protected.

Key extensions — existing property and surrounding property damage, materials in transit and stored off-site, advance consequential loss, delay in start-up, professional fees, hire of temporary premises, expediting expenses and removal of debris.

Contract review

We review the insurance clauses in your key contracts to identify your obligations, verify that your existing program satisfies those obligations, and flag any gaps before they become problems at claim time.

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