Contract Works & Liability

What is a Contract Works & Liability Insurance Policy?

Construction policies combine both Material Damage and Public Liability covers which means it will cover perils such as Fire, Storm, Malicious Damage, along with the risk of bodily injury or property damage that could injure other parties visiting or working at the site. After all Construction sites can be dangerous places where accidents do happen.

Further, these policies can include the “forgotten” expenses when there is a claim such as: 

  • Expediting expenses – such as costs of express delivery, overtime, additional labour and equipment costs to urgently restore or replace property
  • Mitigation costs – such as costs to extinguish a fire or prevent or minimise damage to insured property
  • Professional fees – incurred for the restoration or repair of the property insured
  • Removal of debris – such as costs to demolish and remove damaged works to start the repair or rebuild
  • Variations and escalation – an allowance to vary the sum insured if the final contract value is exceeded

Policies can be extended or can automatically include:

  • Off-site storage and transit to the full sum insured – damage to supplies needed for the project
  • Products liability for previously completed projects
  • Resultant damage from faulty design, workmanship and materials
  • Advanced business interruption
  • Contractors plant and equipment – whether you own, rent or in your care or custody
  • Existing structures
  • Financiers interests
  • Hired in plant
  • Overseas risks (supporting business domiciled in Australia)
  • Liability – Vibration, Removal and/or weakening of support

Who else requires Contract Works and Liability Insurance?

Why CPR Insurance Services?

CPR Insurance Services have a range of insurance solutions for simple or complex projects whether they are owner-builder, residential, commercial, civil or mechanical. We choose a construction insurer that knows and understands construction risks that can offer the flexibility of policies which operate on a turnover, run-off or individual declaration basis.

CPR’s experience in all areas of engineering and construction risks gives you the advantage of fast and accurate advice, no-nonsense claim handling and experts who understand your needs and the nature of the risk exposure.

We have streamlined the whole insurance process so that arranging your cover, managing your claims and taking care of any other needs can be done quickly by phone or email.

Things to remember in Contract Works & Liability Insurance Policies

Watch out and discuss with your Broker some of the following issues:

  • Be careful if you are doing work above the 25th parallel as this can often be an exclusion.
  • Existing property such as for renovations needs to be especially included in the cover
  • Not all policies include cover for a maintenance period
  • Some Liability policies impose restrictions or increased excesses for “Worker to Worker” risks

Who can help?

An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you from market knowledge. Call a good one.

Call CPR – Experts who will save you.

Cooper Professional Risks Pty Ltd trading as CPR Insurance Services is an Authorised Representative of National Adviser Services Pty Ltd (ABN: 60 096 916 184) trading as NAS Insurance Brokers (AFS No.233750)

A guide to Contract Works & Legal Liability in Australia

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Latest News

I Wannacry over Petya

Just as our businesses avoided or got over WannaCry, the name given to the recent Ransom\ware, there's a new attack following close behind. It appears it is exploiting the same vulnerability as Wannacry. The malware responsible is widely thought to be a version of Petya. This latest  ransomware has already crippled Ukrainian government departments, banks, power distributors and transport networks. Now apparently it has spread to other high-profile victims such as a British advertising firm, a French construction materials giant and one of the largest pharmaceutical companies in the world. Australia is unlikely to avoid it this time, with Cadburys and TNT having announced they have fallen victim. the Australian staff of DLA Piper, a global law firm, has apparently been locked out of IT systems after Petya impacted one of its overseas offices.   The ransomware continues to spread and it’s far from over. The Assistant Minister for cyber-security Dan Tehan is calling the fresh attack a "wake-up call" and the Prime Minister's cyber security advisor Alastair MacGibbon has warned against paying ransoms for Petya, urging businesses to instead back up their data to "avoid being a victim in the first place". So it is now time for you to manage this risk effectively.

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What cost to me after a Cyber attack?

It does very much depend on the type of attack that has been made on your systems or Web site. However, below are examples of some of the areas you will spend money. How much? How long is a piece of string?

Have you budgeted for the following Expenses in managing your Cyber Risk?

Payment of a ransom? (Maybe a cheaper solution to get your system back temporarily)

data recovery and data rebuilding (IT consultants and data recovery contractors),

Loss of reputation on the business (You will need Crisis Managers, Public Relation consultants, Staff communications, clients and other stakeholders, marketing and advertising),

Various Accountants and consultants’ fees needed to measure and prove the loss

Managing the recovery – particularly to mitigate breach of privacy or confidentiality of client information and informing all of them who are affected by a breach how you are dealing with it (mandatory breach reporting requirements)

Lost Sales due to this Business Interruption (particularly when ability to generate online sales has been affected),

additional costs incurred to maintain business operations or mitigate sales losses – hiring a more specialist firm to deal more quickly with being off air

Cover these expenses with a Cyber Risk Insurance policy. Ask us how?

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