Construction Work Insurance – Safeguarding Projects from Start to Finish
Construction Work Insurance – Safeguarding Projects from Start to Finish
Blog Article
In the world of construction, risks are everywhere—from site accidents and material theft to weather delays and design errors. Construction Work Insurance, often referred to as Contract Works Insurance, offers essential protection to builders, developers, and contractors. It ensures that your project, tools, and workers are financially safeguarded against unforeseen events.
What is Construction Work Insurance?
Construction Work Insurance is a policy that covers damage or loss to a building under construction and associated works. It typically includes protection for building materials, site machinery, temporary structures, and liability for injury or damage to third parties.
Who Needs It?
- Licensed builders
- Owner-builders
- Developers
- Contractors and subcontractors
- Civil and infrastructure contractors
What It Covers
- Material Damage: Covers the physical loss or damage to the construction site including building materials, scaffolding, and tools.
- Public Liability: Protects you against third-party injury or property damage during construction.
- Equipment & Machinery: Covers plant and machinery either owned or hired.
- Advanced Consequential Loss: Optional cover for income loss due to construction delays.
Exclusions to Note
Most policies exclude:
- Wear and tear
- Faulty design (unless added)
- Delay penalties
- Work outside of Australia (unless specified)
Case Study: Mid-rise Project in Western Sydney
A builder faced significant damage when a storm hit a mid-rise residential development. The policy covered damaged frames, scaffolding, and debris removal—saving the company over $100,000 in losses.
Legal Requirements
In NSW, Home Building Compensation (HBC) insurance is required for residential work over $20,000. HMD helps ensure compliance and combines HBC with Contract Works cover when needed.
Why HMD?
We offer access to top-tier insurers and negotiate tailored construction insurance plans for residential, commercial, and civil projects. Our brokers help manage claims, adjust scope as the project evolves, and support regulatory compliance.
Conclusion
Construction is risky, but with the right insurance, you won’t bear those risks alone. HMD ensures you stay protected from ground-breaking to handover.