Ask a builder what insurance they hold and the answer is often “public liability”. Ask what would happen if the frame blew down the night before lock-up, and the answer gets less certain. The two covers are complementary, and confusing them is costly.
Contract works protects the project
Contract works insurance, sometimes called contractors all risks, is designed to respond to physical loss or damage to the works themselves during construction: the structure, materials on site and, depending on the policy, temporary works. A storm, fire, theft or malicious damage can all set a project back. Contract works is about putting the project back where it was.
Public liability protects you from third-party claims
Public liability is designed to respond when someone else alleges your work caused them injury or damaged their property, including legal costs of defending the allegation. A passer-by injured by falling debris, or a neighbour’s property damaged by your excavation, are public liability scenarios.
Where the gaps appear
- Existing structures on renovation jobs, which may need to be specifically included.
- Contract requirements for limits, interested parties and principal’s cover.
- Faulty workmanship, which is commonly excluded in itself while resulting damage may be covered.
- Projects that exceed the limits of an annual policy.
Read the contract before the policy
Standard Australian construction contracts allocate insurance responsibilities in different ways. Before you price a job, check who must insure the works, at what value, and for how long. We are happy to read the insurance clauses with you.