Construction risk

Contract wording and scope of work matter.

Construction businesses can face public liability, property damage, project damage, design liability and contractual obligations that interact across several policies. Businesses should consider the activities performed, subcontracting structure, project values and principal insurance requirements before approaching insurers.

Areas we commonly review

• Public and products liability
• Contract works / construction all risks
• Design and construct professional indemnity
• Plant, equipment and mobile assets
• Motor fleet
• Environmental and pollution exposures where relevant
• Management liability and cyber
• Principal-controlled or project-specific insurance requirements

Construction insurance for a broad range of contractors

We can assist with insurance for builders, civil contractors, specialist subcontractors and construction businesses across Australia, subject to insurer appetite. This can include commercial builders, fit-out contractors, civil and earthworks businesses, drilling and excavation contractors, structural and steel contractors, demolition contractors, concrete and formwork contractors, mechanical and electrical contractors, mining-related contractors and other specialist construction activities.

Higher-risk and hard-to-place construction exposures

Some construction businesses can be difficult to place because of the work performed, contract values, project locations, use of subcontractors, work at height or depth, hot works, structural activities, underground services, mining exposure, hazardous environments or prior claims. We can approach insurers with experience in more complex construction risks and present the business clearly, including controls, experience, project profile and claims history.

Public and products liability for construction businesses

Public and products liability is a core consideration for many contractors. The policy may respond to covered claims alleging third-party personal injury or property damage arising from the insured business activities, subject to the wording, exclusions and conditions. Important underwriting information can include the exact trades performed, annual turnover, wages, subcontractor payments, labour hire, work locations, maximum contract values and any work involving demolition, excavation, structural elements, asbestos, height, heat or hazardous environments.

Contract works and construction all risks

Contract works insurance can be arranged for individual projects or on an annual basis, depending on the nature of the business and insurer appetite. Cover can include insured construction works, materials and temporary works against insured physical loss or damage during the construction period, subject to policy terms, deductibles and exclusions. We can also review whether existing property, plant, transit or liability policies need to coordinate with the contract works placement.

Design and construct professional indemnity

Construction businesses that provide design, specification, engineering input, shop drawings, design coordination or accept contractual design responsibility may require Design and Construct Professional Indemnity insurance. D&C PI is distinct from public liability and contract works cover and is intended to address certain claims arising from covered professional services, subject to the policy wording. We can assist with placements for contractors that undertake their own design work as well as those that engage external consultants but retain contractual responsibility.

Subcontractors, labour hire and principal requirements

Construction insurance submissions often need to disclose the extent of subcontracting and labour hire. Insurers may ask about the types of subcontractors used, whether they carry their own insurance, how their cover is checked, and what work is retained in-house. Principal or head contractor requirements may also specify liability limits, additional insured or interested party provisions, waivers, project-specific conditions or other insurance obligations. We can discuss the insurance implications and available policy options, while legal interpretation of contracts should remain with the insured’s legal adviser.

Plant, equipment, tools and mobile assets

Contractors may also need cover for owned or hired-in plant, mobile equipment, tools, site equipment and other assets. Depending on the risk, this may be insured under dedicated plant and equipment cover, mobile plant insurance, contract works insurance or other property policies. Consider how these covers interact with motor fleet, transit and liability insurance.

Construction insurance information insurers commonly request

A well-prepared submission can help insurers understand the risk. Typical information includes a clear business description, trades performed, turnover, wages, subcontractor and labour hire costs, maximum contract value, annual project values, work locations, height and depth exposures, hot works, excavation, demolition, structural work, principal-supplied materials, plant values, design activities, major clients and a detailed claims history.

Insurance requirements and policy cover

Tell us about any requested insurance limits or insured parties so we can discuss the cover available. Contractual liability exclusions can restrict cover. Your legal adviser should interpret and negotiate the agreement.