Construction projects involve moving parts, tight timeframes and significant financial exposure. Damage to works in progress, materials on site, or liability claims can quickly derail a project. Construction & Contract Works Insurance is designed to help protect construction projects and contracting businesses against these risks.

At Rivergum Insurance Brokers, we arrange Construction & Contract Works Insurance that reflects how your projects are structured, how often you work, and where risk sits contractually.

What Is Construction & Contract Works Insurance?

Construction & Contract Works Insurance provides cover for works in progress, materials, and associated risks during construction, installation, renovation or alteration projects.

It is commonly arranged by:

• Builders and developers

• Trades and subcontractors

• Project managers

• Owner-builders

• Civil and infrastructure contractors

Policies can be arranged on either a single-project basis or an annual basis, depending on how your business operates.

What Can Be Covered?

Cover can vary depending on the policy and project, but commonly includes:

Contract Works (Works in Progress)

Cover for the construction works themselves — including permanent works, temporary works and materials — against insured events such as fire, storm, theft and accidental damage.

Materials On-Site, In Transit & Storage

Cover for materials while:

• On the construction site

• In transit to site

• Stored off-site (subject to conditions)

Public Liability

Cover for legal liability arising from injury to third parties or damage to property caused by construction activities.

Plant, Equipment & Tools (Optional)

Cover for owned or hired-in plant, machinery and tools used on site.

Single-Project vs Annual Construction Insurance

Choosing the right structure depends on how often you undertake construction work.

Single-Project (Project-Specific) Insurance

Single-project policies are arranged for one specific construction project, with cover starting at commencement and ending at completion (and sometimes handover).

This option may suit:

• One-off or infrequent projects

• Developers or owner-builders

• Projects with specific contractual insurance requirements

Key considerations:

• Cover is limited to the nominated project

• Policy ends when the project is completed

• Extensions may be required if timeframes change

Annual Construction & Contract Works Insurance

Annual policies provide ongoing cover for multiple projects over a 12-month period, up to nominated limits.

This option may suit:

• Builders and contractors with continuous work

• Businesses working across multiple sites

• Trades undertaking regular projects throughout the year

Key considerations:

• One policy covers multiple projects

• Limits apply per project and in the aggregate

• Project values and activities must be declared accurately

Understanding Run-Off Cover

Run-off cover is an important but often misunderstood aspect of Construction & Contract Works Insurance.

What Is Run-Off Cover?

Run-off cover extends protection for completed works after construction has finished. It responds to insured damage that occurs after practical completion, but relates back to the construction period.

Why Run-Off Cover Matters

Construction defects or damage don’t always appear immediately. Weather events, structural movement or latent issues can arise months after completion.

Without run-off cover:

• Completed works may no longer be insured

• Liability may fall back on the contractor or builder

• Claims may not respond under an expired project policy

How Run-Off Cover Works

• Some policies include a limited automatic run-off period

• Others require run-off to be specifically nominated and purchased

• Run-off periods can range from a few months to several years

The appropriate length depends on:

• Contractual requirements

• Type of construction

• Ongoing exposure after handover

What’s Not Automatically Covered?

Construction policies typically exclude or limit certain risks, such as:

• Defective workmanship or materials (without resultant damage)

• Design errors (unless separately insured)

• Wear and tear or gradual deterioration

• Known defects at inception

Understanding these exclusions is critical before work begins.

Why Arrange Construction Insurance Through Rivergum?

Construction insurance is rarely straightforward. As brokers, we:

• Review contract conditions and insurance clauses

• Advise on project vs annual policy structures

• Ensure project values, limits and timeframes are accurate

• Address run-off and completion exposures

• Assist with claims and insurer negotiations

Our focus is on making sure cover responds when it’s actually needed — not just meeting minimum contract requirements.

Speak With Us

If you’re planning a construction project or reviewing your ongoing cover, we can help you assess the right structure and level of protection.

Contact Rivergum Insurance Brokers to discuss your project, contracts and risk exposure.