Before you review your cover, use the quote option that applies to you:
A building project can face loss or damage before the work is finished. Contract works insurance is designed to protect construction works during a project, but the cover depends on the policy wording, limits and conditions.
If you’re a Queensland builder, tradie or owner-builder, use these ten checks to prepare before you arrange cover.
1. Make sure the cover matches the work
Contract works insurance is project-focused. It can cover physical loss or damage to construction works while a project is underway, subject to the policy terms.
The site address, scope of work, construction method and insured parties should match the actual project. A new home build, renovation and commercial fit-out can have different exposures. Describe the work accurately when requesting a quote.
2. Check what happens to materials on site
Some policies cover materials delivered to the site and intended for the build. Conditions may apply to where they are stored, how they are secured and whether they are included in the declared project value.
Ask whether cover applies to materials held off site or while in transit. Keep invoices, delivery records and a current inventory so you can show what was purchased and where it was stored.
3. Ask separately about tools and equipment
Materials for the project are not necessarily the same as your tools, machinery or mobile plant. Portable tools, hired equipment and machinery may need separate cover.
Ask about tools left on site overnight, equipment kept in vehicles and any security requirements. Check the limits and conditions rather than assuming that the contract works policy covers every item used on the job.
4. Check storm, rainwater, theft and vandalism cover
Depending on the policy, insured events may include storm damage, theft and vandalism. But the details matter. Rainwater entering through an exposed or partly completed structure may be treated differently from gradual water entry, a leak or damage linked to defective work.
Flood, cyclone and storm surge may have their own limits, exclusions or excesses. Check the wording for your particular site and don’t assume that cover for storm damage means all water-related damage is covered.
5. Understand what may not be covered
Contract works insurance does not cover every problem that can happen on a building site. Policy restrictions may apply to defective workmanship, faulty materials, design defects, wear and tear, gradual deterioration, unexplained shortages and delay costs.
The policy may also treat the defective part differently from other damage that follows. Read the relevant wording and ask Business Insurance Consulting to explain any key terms in plain English before you decide.
6. Check public liability as a separate protection
Some contract works policies include public liability cover, but don’t assume it is included or that the limits meet your contract requirements.
Public liability generally relates to claims from other people for injury or property damage connected with your work. It does a different job from cover for the works themselves. Check the limit, insured parties and exclusions. You can read more about Public Liability Insurance Brisbane and how it differs from project cover.
7. Arrange cover before work starts
Set up cover before construction begins. Your contract, lender or head contractor may require evidence of insurance before the project starts. Check who must arrange the policy and which parties need to be named.
If work has already begun, be upfront when requesting a quote. Cover should not be assumed to apply to work or damage that happened before the policy started. As Craig Graham puts it: “if you don't seek late cover quotes, you will never know”.
8. Match the policy period to the build
Check the policy start date and how cover ends. The end point may be a date in the schedule, completion, handover or occupation, depending on the wording.
If the build is delayed, contact Business Insurance Consulting before the cover expires to discuss an extension. Don’t assume the policy will continue automatically. For renovations or extensions, declare existing structures and check whether they are included.
9. Set a realistic value for the works
The sum insured should be based on the policy’s valuation requirements. Don’t use only the amount already spent or the value of materials currently at the site.
Check whether the estimate should include labour, materials, subcontractors, temporary works, professional fees, debris removal, cost increases and GST. The right basis depends on the policy. If the value is too low, you may have to carry part of a loss yourself.
10. Compare excesses and the total cost
An excess is the amount you may need to pay towards a claim. Different excesses can apply to different events, such as theft, storm or flood. Check the schedule and any special conditions so you know what you could pay after a loss.
There is no single standard price for contract works insurance in Queensland. The premium can depend on the project type, value, location, duration, construction method, claims history, cover and excess. Compare the policy terms, limits and total cost, not only the headline premium.
Prepare your Brisbane site for storm season
Queensland building sites can face heavy rain, strong winds and storms during the November-to-April period. Before storm risks increase, check that the cover reflects the site’s location and the weather exposures relevant to the project.
Secure materials, protect openings and temporary roofing, and take dated photographs of the site. These practical steps can reduce avoidable damage and help you keep clear records if you need to make a claim.
Want to check cover details or request a quote?
For project cover details and quote options, visit Business Insurance Consulting’s contract works insurance resource. It’s the main resource for builders, tradies and owner-builders looking at contract works insurance in QLD.
Business Insurance Consulting has access to more than 150 underwriting agencies and insurers. This gives the team a broader range of options to consider when looking at your project and can help with comparing premium, advice and service. The right terms and price depend on your circumstances and the available options.
For broader construction insurance information, see the Queensland construction insurance guide or the Brisbane builders insurance guide.
Bookmarkable contract works checklist
Save this list before work starts:
- Confirm the site address, project scope and insured parties.
- Check materials on site, off-site storage and transit.
- Ask whether tools, machinery and hired plant need separate cover.
- Confirm storm, rainwater, theft, vandalism, flood and cyclone terms.
- Check public liability cover and limits separately.
- Arrange cover before work begins.
- Match the policy period to the build and allow for possible delays.
- Declare any existing structures and ask how they are treated.
- Set the sum insured using the policy’s valuation basis.
- Check excesses, conditions and total premium.
Use the quote option that applies to you:
For a project-specific review, contact Business Insurance Consulting before work begins or if the build timeline changes.
Related insurance topics: Insurance Broker Brisbane, Business Insurance Brisbane, Commercial Insurance Brisbane, Property Management Insurance Brisbane, Real Estate Insurance Brisbane, Professional Indemnity Insurance Brisbane, Public Liability Insurance Brisbane, Cyber Insurance Brisbane, Commercial Property Insurance Brisbane, and Claims Assistance Insurance Broker Brisbane.
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Disclaimer: This info is general advice only and doesn't consider your personal goals or financial situation. Before making a decision, please read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD).
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