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Contract Work Insurance for Australian Construction Projects

Contract work insurance (also known as contract works insurance) helps protect construction projects against physical loss or damage while work is in progress. It is commonly required for builders, contractors, and developers working on residential, commercial, or civil projects.

What is Contract Work Insurance?

Contract work insurance covers physical loss or damage to building works, materials, and structures under construction.

This may include damage caused by events such as fire, storm, theft, vandalism, or accidental damage occurring during the construction period.

Without contract work insurance, repair or replacement costs may fall directly on the builder, contractor, or principal.

How contract work insurance works with other insurance

Contract work insurance is often arranged alongside:

Public liability insurance

Tools and plant insurance

Professional indemnity insurance (where design advice is provided)

Workers compensation

Each policy covers different risks and works together to protect your business.

What Does Contract Work Insurance Cover

Comprehensive protection for the most common risks professionals face in their daily operations.

Buildings Under Construction

Covers loss or damage to buildings and structures while construction is in progress.

Construction Materials

Protects materials on-site, in transit, or temporarily stored during the project.

Temporary Works & Site Structures

Covers temporary works, scaffolding, formwork, and other site structures.

Fire, Storm & Accidental Damage

Covers damage caused by insured events such as fire, storm, flood, or impact.

Theft & Vandalism

May cover theft or vandalism losses, subject to policy terms and conditions.

Debris Removal Costs

Covers the cost of removing debris following insured damage to the works.

What is generally not covered?

Like all insurance policies, Contract Work Insurance has exclusions. It's important to understand what falls outside the policy.

Defective workmanship or materials
Wear and tear or gradual deterioration
Faulty design or specification

Contractual penalties or delays
Employee injuries (covered under workers compensation)

Who Needs contract work Insurance?

Contract work insurance is commonly required by:

Builders and principal contractors

Subcontractors working on construction projects

Property developers

Renovation and fit-out contractors

Commercial and residential construction businesses

How Much contract work Insurance Do You Need?

The sum insured should reflect the full contract value of the project, including materials and labour, the construction period, and overall project scope, as underinsurance can reduce claim payments if the declared value is inaccurate.

$500K

Standard Entry Level

Suitable for small residential renovations or minor construction projects.

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We bridge the gap between complex risk and simple protection. Your business deserves an advocate, not just a policy.

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We act solely in your best interest, providing independent advice and advocating for fair outcomes when it matters most.

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Small businesses are our focus. We understand your growth stages and tailor insurance solutions that truly fit.

Expert Claims Support

You’re not alone. Our team provides hands-on guidance to navigate the process and achieve the best possible outcome.

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No jargon, no hidden surprises. We make insurance easy to understand and efficient, saving you time.

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Frequently Asked Questions

It is not legally compulsory, but it is commonly required by construction contracts and principals.

Some policies do, subject to policy terms and conditions.

Coverage depends on how subcontractors are declared and the policy wording.

Important Information GS Insurance Service Pty Ltd ABN 48689471663 | ASIC Authorised Representative No: 1316709 is a Corporate Authorised Representative of Resilium Insurance Broking Pty Ltd ABN 92 169 975 973 | AFSL 460382.  

The information on this website does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs. ‍ 

We subscribe to and are bound by the Insurance Brokers Code of Practice, a full copy of which is available from the National Insurance Brokers Association (NIBA) website, https://www.niba.com.au

Insurance Solutions You Can trust

Is contract work insurance compulsory?

Does it cover materials off-site or in transit?

Does it cover subcontractor work?