Whether you’re a homeowner, a property investor, builder or business owner, building, renovating or extending your property can be expensive – and risky. It’s essential to have insurance in place to protect your property and your investment during the build.

Contracts, construction and protecting your property from risk

Every construction project has the potential for problems at any stage – including unexpected issues at the excavation and foundation stage, delays with the construction itself, building materials being stolen or weather causing damage. These can lead to additional costs for repairs or replacement, and to pay contractors to redo work.

Contract works and construction insurance are designed to cover the risks of construction projects and should be organised before any work starts on-site.

At ICIB Brokerweb, we understand the insurance needs of major construction contracts, and our standard policies reflect those requirements. We can provide one-off policies for homeowners, or long-term policies for builders and other construction businesses.

Of course, if your project doesn’t fit the standard, we can create a tailored policy to fit. 

Standard construction policies include:

  • Cover for all parties required to be insured by the construction contract – can include all contractors and sub-contractors
  • Cover for additional costs following accidental loss – can include expediting, clean-up, debris removal and unexpected professional costs
  • A provision to reduce the risk of under-insuring by allowing for an increase in costs during construction
  • Cover for increased reconstruction costs after accidental loss or damage
  • Cover for testing and commissioning of new plant and equipment

Specialised construction insurance cover

Not sure what you need? Here's an overview of some of the key types of building insurance cover.

Contract works – single project:

This policy suits all types of one-off project – from homes and commercial buildings to civil works. It’s also a good choice for new construction projects and renovations. Single-project policies don’t include liability as standard, but we can arrange separate cover if needed.

Contract works – Erection all risks:

This cover is designed to reduce the considerable risks associated with building or upgrading commercial plants and factories. The policy covers loss arising from erecting, installing and testing plant machinery and equipment.

Contract works – Annual:

An annual policy is ideal for builders working on multiple projects throughout the year. Rather than arranging separate cover for every new contract, all projects are covered by your existing policy. However, annual contracts only apply to new builds – if you are working on an existing building, the principal or owner will need to arrange their own cover.

Advanced consequential Loss/Loss of profits

Delays to a construction project can cause significant problems and create significant additional costs. Any changes to the project timeline can set you back, delaying the date that a commercial project can start earning revenue. Many businesses do not protect themselves against this type of loss, often because they don’t take loss of anticipated income into account.

The advanced consequential loss section of your policy protects you against the revenue shortfall caused by delays to the start date of a planned commercial operation. It can also cover increased costs incurred to avoid or minimise this impact. The delay must be caused by physical loss or damage to a project, or an event insured under the contract works policy.

At the beginning of the project, the principal establishes a timeline and an estimated completion date. While this date may be modified during the project, there will always be a set date in mind.  If damage or loss forces a change in this completion date, the consequential loss cover can be used.

Find out more about all types of contract works cover by giving us a call.

Insurance and risk partner to NZCB

We are the risk and insurance partner to the NZ Certified Builders Association (NZCB) under the Redi Builders’ Insurance brand.

We offer a number of special options for NZCB members including contract works, insurance single project, or annual period cover, designed to meet all limits required by the NZCB standard contract.

To find out more visit –

To protect your building business and your people

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