Who requires Contract Works cover?

Builders are not the only people who require contract works insurance.  There are many different types of businesses or individuals that will buy a construction policy for many different reasons depending upon their circumstance.

These include but are not limited to: 

  • Sub-contractors (plumbers, electricians, concreters etc.)
  • Engineering Businesses
  • Property Owners/Property Trusts (Principals)
  • Government Entities and Local Councils
  • Business Owners (through own business related capex or expansion)
  • Project Managers

Anyone who is building, erecting or installing something may have a requirement for contract works insurance.

What are the reasons why someone other than a builder/contractor would arrange construction insurance? 

  • Contractual requirements
  • Control of insurance placement (cover and pricing)
  • Complexity of project (multiple contactors)
  • Existing property cover requirements

Latest News

Illegal or unsuitable cladding now a big issue

Why we have laws, regulations and Australian standards? Because some people just do the wrong thing all for the sake of making money. The cladding issue is the subject of 4 Corners program on the ABC.

We are already seeing Insurance policies now placing exclusion endorsements into their policies excluding and claims relating to illegal cladding. We are seeing Governments demanding Audits of all existing buildings above a certain height. There are accusations of Builders taking other short cuts such as on Wiring, Pipes and sprinkler systems. 

The question is, who is to blame? Who will take responsibility?

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Small business in NSW

Right after the NSW Government have reimposed Fire Service Levies, they have at least made an effort for small business. The government has announced it will abolish stamp duty on a number of policies taken out by a small business. This is an important change.

What is a small business? In order to gain the exemptions, the business must be a small business for Capital Gains Tax Purposes for the income year in which the insurance is effected or renewed. A small business for CGT purposes is: “an individual, partnership, company or trust that is carrying on a business, and has an aggregated turnover of less than $2 million.”

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