Contract Works explained
All construction work, no matter how small or simple, contains an element of risk and your client’s home insurance policy only goes so far. It will only cover the extension you’re working on when it’s complete, so you need Contract Works insurance to protect your build whilst it’s a work in progress.
When you’re choosing how much Contract Works Insurance to buy, you need to consider the total cost of your largest project, including labour and materials. It’s important to buy the right level of cover so you can get the right amount of compensation if you come to make a claim. For example, if your biggest project will bring in £1 million over two years, you need £1 million of Contract Works Insurance.
What does Contract Works cover?
It covers any new works as they are being constructed on-site, like extensions, loft conversions and new builds. This type of insurance policy will pay to repair or redo the work that’s in progress if it’s damaged by an insured event, such as a fire, flood, vandalism or theft.
Depending on your business needs, your Contract Works Insurance could cover you for:
- Your own plant and tools
- Plant, tools and temporary buildings on-hire
- Your employees’ tools and personal effects
- Your stock and materials
Whether you’re working on a new home and a fire destroys some of the part-finished building, or your site is broken into and vandalised, your Contract Works Insurance should cover the cost.
Your coverage will be dependent on your insurer and business – please check your individual policy for detailed information about what you’re covered for.
Speak to a member of the FMB Insurance team on 01353 652760 to discuss your policy, email [email protected] or request a quote online here.