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Contract Works Insurance

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How much does contract works insurance cost?

The cost of contract works insurance in New Zealand typically averages between $1,000 – $2,000 per project. This cost typically varies based on several factors, including the nature and scope of the project, the level of coverage, and the insurance company’s individual risk assessments.

What is the average cost of contract works insurance? 

Policy holders in New Zealand typically pay between $1,000 – $2,000 per project for contract works insurance.  

The most impactful factors are usually the value of the project and its duration. Projects with higher values or longer timeframes inherently pose more risks due to the increased potential for unforeseen circumstances, like weather events, theft, or damage to the works, which could interrupt operations or lead to substantial financial losses. Consequently, these projects may attract higher insurance premiums.

Understanding Contract Works Cost Factors

There are several factors that influence the cost of contract works insurance. Here are three primary ones

How does project size change the cost of insurance?

  • Larger projects usually cost more to insure.
  • This is because bigger projects often involve more workers, equipment, and materials, thus increasing the potential risks and liabilities.

Different forms of construction impact insurance costs

  • The type of construction, whether it’s residential, commercial, or industrial, can significantly affect the cost.
  • For example, industrial construction may require specialized equipment or materials, increasing the risk and subsequently the cost of the insurance.

How does your location alter your contract works insurance cost?

  • Projects in areas prone to natural disasters such as earthquakes or floods may cost more to insure.
  • The accessibility and security of the location also play a role in the cost, as remote or high-crime areas may increase premiums.

Contract Works Provides Cost-Effective Protection for Your Business

Contract works insurance is designed to protect businesses from potential risks associated with construction projects. Here’s how:

Covers Unforeseen Damages

  • This insurance covers unexpected damages to the work in progress, providing a safety net for your business.
  • Whether it’s weather-related damage or accidental destruction of materials, this coverage ensures that your project can continue without significant financial loss.

Protects Third-Party Interests

  • It safeguards against claims from third parties, such as injuries or property damage.
  • This means that if someone gets hurt or a neighboring property is damaged during construction, the insurance will cover the costs, protecting your business from legal liabilities.

Provides Flexible Coverage Options

  • Contract works insurance is customizable, allowing you to choose the coverage that fits your specific needs and budget.
  • This ensures that you only pay for what you need, making it a cost-effective solution for various types and sizes of projects.

It’s crucial to have contract works cover if:

  • You manage or own construction projects
  • Engaging in high-risk building activities
  • Working in disaster-prone areas
  • Have lending on the project

How Can You Save on Contract Works Insurance

Saving on contract works insurance is possible by understanding and implementing the following strategies:

Choose the Right Level of Coverage

  • Carefully assess the risks associated with your project and choose the level of coverage that fits best.
  • Over-insuring can lead to unnecessary costs, while under-insuring might leave you exposed to significant risks. Finding the right balance is key to cost-effective protection.

Implement Strong Safety Measures

  • Insurance companies often offer discounts for businesses that prioritize safety and risk management.
  • By implementing proper safety protocols and regularly maintaining equipment, you can reduce the risk of accidents and qualify for lower premiums.
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Engage our contract works insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of contract works insurance. Our team of insurance brokers is equipped to guide you through the process of selecting the most suitable and affordable insurance policy. We have an extensive network of insurance providers, and our job is to negotiate on your behalf, compare offers, and secure the best rates for you.

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