Contract Works Insurance

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Contract works insurance for small businesses

If you’re involved in any construction or extension work, then you’ll know that the job always comes with an element of risk. There is always the risk of accidents, natural disasters or petty vandalism destroying the hard work you have put into a construction project.

Not only is seeing hard work go to waste frustrating, but you could also be liable for any repairs needed. Rather than finding yourself out of pocket, contract works insurance can help to cover the cost of repairs or replacements needed for your construction project in the event of unforeseen circumstances.

Contract works insurance can cover current work you are doing on a construction site against risks such as fire, flooding and theft. It can help to pay for costs needed to repair or redo the contract work, so that you’re not left out of pocket. Contract works insurance can help to cover the work you are doing and materials used as part of that contract.

Aon can arrange contact works insurance as part of a business insurance package, this cover can be added alongside public and products liability insurance.

Contract works insurance is an important consideration for all builders, renovators and tradespeople involved in ongoing contract works.

Contract works insurance can help to cover new and current projects including new constructions, refurbishments, repairs and extensions. So long as the works carried out are current, contract works insurance can provide you with important cover. Speak with us today to find out more about contract works insurance. We can help you find the right level of cover for your business needs.

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Frequently Asked Questions about Contract Works Insurance

Who should take out contract works insurance?

Anyone who works in the construction and building industry can benefit from taking out contract works insurance. This can include a range of businesses, including building contractors, developers, carpenters, electricians, bricklayers and more. So long as you’re working on contract work within the construction and building industry, you should consider taking out contract insurance.


Check the contract you signed with your client to see who is liable if any work is damaged or unfinished. If the contract holds you responsible, then you may need contract insurance to cover you should an incident occur. Even if the contract does not hold you liable, it’s still worth considering applying for cover to help protect your business against unexpected loss.

What are contract works?

Contract work refers to any construction work carried out by a contractor of some kind. Contract work can be minor works such as new tiles for a bathroom, right through to major home or street renovations. In all cases, there is an expectation by the client that the project will be finished on time and within budget.


Even the smallest construction or renovation project is at risk from accidents or malicious damage. Depending on the contract made with your client, you could be liable for any repairs should such an incident occur. In such cases, having contract works insurance can help to ensure costs are covered so you won’t have to pay out-of-pocket expenses.

What is covered under a business insurance policy that includes contract works cover?

If you choose to include contract works insurance within your business insurance policy this can generally cover you for the following:


  • Damage caused to your construction project due to risks such as fire, floods, storms, theft, vandalism.
  • Damage or loss of on-site temporary structures.
  • Accidental damage to materials located on-site.

You can also include additional covers to your business insurance policy such as tools or plant insurance which can provide protection against risks such as loss, damage or theft. These covers can be added alongside public and products liability insurance.


Contract works insurance for building work does not cover any existing permanent structures found on site. For example, say there is a house on-site, and you are building an extension for it. During the building stage, a fire takes hold and burns down both home and extension. Your contract works insurance will cover the extension but not the original house, as the client’s home insurance should cover this.

Is contract works insurance the same as public liability?

While contract works insurance may cover some similar aspects of public liability insurance, they are not the same thing. Contract works insurance is designed to protect you from liability should damage occur to your construction project as a result of events such as fire or vandalism.


Public liability insurance, on the other hand, covers you for accidental third-party property damage. It also protects against compensation claims you may face as a result of injury incurred by a member of the public near or on your worksite.


It’s worth considering contract works insurance in addition to public liability cover. Speak with us today to find out more about how these two policies differ.

How much does contract works insurance cost?

Consider the total cost of your largest project, including all materials purchased and used as well as labour. Once you have an estimated cost for your contract work, you should consider purchasing insurance that can protect you should the worst happen.


You should make sure that you invest in the right level of contract works insurance cover for your project to make sure you’re not financially impacted should an incident occur.

Do you need customised business insurance for your company?

Or speak to us for advice and recommendations customised to your business needs.

0330 054 5244
The Aon Centre

The Leadenhall Building, 122 Leadenhall Street

London EC3V 4AN