What Is a Contract Works Insurance

If you`re a freelancer, contractor or self-employed, you may have heard the term “contract works insurance” thrown around. But what exactly is it and why might you need it?

Contract works insurance, also known as construction all risk insurance, is a type of insurance that provides coverage for damage or loss to a construction site or project during the course of its construction. This type of insurance is typically taken out by contractors or builders, but it can also be applicable to anyone undertaking building works on their own property.

The coverage provided by contract works insurance typically includes protection for loss or damage to the site, materials, plant and equipment, and third-party liability. This means that if something goes wrong during the construction process, such as a fire or theft, you`ll be covered for the associated costs.

It`s important to note that contract works insurance doesn`t cover completed works. Once the construction project has been completed and handed over, the responsibility for insuring it shifts to the property owner.

So why might you need contract works insurance as a freelancer or self-employed individual? If you`re undertaking any kind of construction work on a client`s property, it`s important to ensure that you`re adequately covered in the event of damage or loss. This can help protect you from costly legal claims and ensure that you`re able to complete the project to the satisfaction of your client.

Additionally, some clients may require that you have contract works insurance in place before they will work with you. By having this insurance in place, you can demonstrate that you take your responsibilities seriously and are committed to protecting both yourself and your clients.

In summary, contract works insurance is a type of insurance that provides coverage for damage or loss to a construction site or project during the course of its construction. If you`re a freelancer or self-employed individual undertaking any kind of construction work, it`s important to consider whether this type of insurance is necessary to protect yourself and your clients.