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Contract Works


When entering into any contract for building alterations, additions or new projects, there are a variety of insurance policies that must be arranged. LCA Insurance can help you navigate your way through the process and secure the insurance you need for your specific project. This cover is not automatically included in the annual premium.

There are several different standard contracts used in the construction industry. Each
has provisions for the types of insurances to be arranged and identifies the person/s
responsible for arranging them. The insurance clauses will state who is responsible for
property damage and public liability for the building works and the amount of insurance that must be taken out. The classes of insurance are:

Insurance on the works: The contract will usually provide that insurance of the work
to be done will be in the form of a contract works policy for the full value of the contract
price, plus a percentage for professional fees and an amount for the cost of debris

Insurance for legal liability to the public: The amount of the insurance will be

Insurance of workers: This is the responsibility of the employer to arrange workers compensation cover for their employees, builder or sub contractor.

Evidence that all of the above insurances have been arranged should be made available to both the owner and the builder.

Generally where a standard industry building contract is in place, the contract determines which party is responsible for arranging the following insurance (either the contractor/builder or owner/principal):

  • Public Liability insurance (covers legal liability for bodily injury or property damage to third parties in the course of the building works);


  • Contract Works insurance (covers material damage to the Works in progress or materials to be used in the works for loss/damage by various perils eg. fire, storm, theft, malicious damage).

You can elect to arrange this insurance via cover available from LCA Insurance instead of relying on the builders/contractors insurance. If you elect to arrange insurance it will need to be shown in the building contract. Please notify LCA Insurance and the relevant application will be provided.

The insurance will cover the owner (as principal), contractor (builder) and all sub-contractors engaged in the building works. LCA Insurance can issue the necessary evidence of cover when required.

What excess applies?

Contact LCA Insurance.

Need to make a claim?

Verbal notification must be provided to LCA Insurance. We will arrange for the necessary claim forms and/or assessment.

Please note that this website only provides a summary of coverage. More detailed information is available by contacting us directly. The insurers policy wordings will take precedence over information contained in this website.