Construction site - contract works insurance claims process

CLAIMS GUIDE

Contract Works Insurance Claims

How to make a claim, what's covered, common scenarios we've handled, and why having a broker makes a difference when things go wrong on site.

24h

Claim lodgement

2-4wk

Settlement guide*

100%

Broker advocacy

HOW TO CLAIM

To make a contract works insurance claim: secure the site, document everything with photos, then contact your broker within 24 hours. We'll lodge the claim, guide you through documentation, and advocate with the insurer on your behalf.

The most important thing? Don't clean up before documenting. Insurers need evidence of the damage as it was. A broker ensures your claim is presented correctly and fights for the best possible outcome.

CLAIMS PROCESS

How to Make a Contract Works Claim

Follow these steps for the smoothest claims experience. The key is documentation and early contact with your broker.

01

Secure the Site & Document Everything

Your first priority is safety and evidence. Secure the site to prevent further damage, then photograph and video everything before any cleanup. This documentation is critical for your claim.

02

Contact Your Broker Immediately

Call your broker as soon as possible - ideally within 24 hours of discovering the loss. We'll guide you through the process, advise on next steps, and lodge the claim on your behalf.

03

Complete the Claim Form

Your broker will provide the claim form and help you complete it accurately. Include all supporting documentation: photos, invoices, contracts, police reports (for theft), and weather reports (for storm damage).

04

Assessor Inspection

For significant claims, the insurer may send an assessor to inspect the damage. Your broker can be present to represent your interests and ensure the assessment is fair and thorough.

05

Claim Settlement

Once approved, the insurer will pay the claim minus your excess. Straightforward claims with good documentation can settle in 2-4 weeks as a general guide, though complex claims may take longer. Your broker advocates to expedite the process and maximise your payout.

WHAT WE'VE SEEN

Common Contract Works Claims

These are the most frequent claim scenarios we see across our portfolio of builders and construction projects. Storm damage leads in QLD and NSW, while theft remains a persistent issue on residential sites across all states.

Storm Damage

Heavy rain, wind, or hail damages exposed framing, roofing materials, or completed work before handover. We see seasonal spikes during storm season, particularly affecting coastal and exposed sites.

Most common in QLD/NSW

Fire Damage

Fire destroys construction work, materials, or the entire project. Can be accidental (hot works, electrical faults) or arson on vacant sites.

Less frequent but severe

Theft & Vandalism

Materials stolen from site including copper wiring, tools, and building materials. We've lodged claims for builders who had materials stolen during construction, with claims currently being processed through insurers.

Very common on unsecured sites

Water Damage

Burst pipes, flooding, or water ingress damages internal works, flooring, or existing structures. Often occurs during renovation works when existing plumbing is disturbed.

Common during renovations

Accidental Damage

Construction equipment or workers accidentally damage the project or materials on site. Excavator strikes, crane incidents, and dropped materials are typical examples.

Regular occurrence

Existing Structure Damage

Damage to the original building during renovation or extension works. This is why existing structure cover is critical for renovation projects.

Renovation-specific risk

BROKER ADVOCACY

Why Claims Advocacy Matters

When you claim direct, you're negotiating alone against experienced insurance professionals. With a broker, you have someone on your side who knows the process, policy wording, and how to maximise your payout.

01

Lodge claims correctly the first time, with proper documentation and presentation from day one

02

Challenge unfair assessments when an assessor has undervalued your loss

03

Navigate policy wording and identify coverage you didn't know you had

04

Communicate with assessors and represent your interests during site inspections

05

Expedite settlement by leveraging insurer relationships to speed up the process

THE BROKER DIFFERENCE

We work closely with specialist underwriters like 360 UW who understand construction risks. When claims are complex or initially declined, we know how to present the case, challenge assessments, and identify coverage that may have been overlooked, such as existing structure damage on renovation claims.

CURRENT CLAIMS WE'RE MANAGING

We're currently assisting a Victorian residential builder with a theft claim after materials were stolen from site during construction. The claim has been lodged and is being processed. This is the reality of construction sites: theft happens, and having proper cover (and a broker to manage the claim) makes all the difference.

Claims assessment and calculation for contract works insurance

DOCUMENTATION

What You'll Need for Your Claim

Good documentation speeds up your claim and improves your settlement. Here's what to gather.

Visual Evidence

  • Photos of damage from multiple angles
  • Video walkthrough of affected areas
  • Before photos (if available)
  • Date/time stamped images

Project Documents

  • Construction contract
  • Project schedule/timeline
  • Invoices for damaged materials
  • Progress payment records

Supporting Reports

  • Police report (theft/vandalism)
  • Weather bureau data (storms)
  • Fire brigade report (if applicable)
  • Witness statements

Pro tip: Document everything immediately, even if you're not sure it's relevant. It's easier to have too much evidence than too little. Your broker will help you determine what's needed for your specific claim.

CLAIMS FAQS

Common Questions About Contract Works Claims

Straightforward claims with good documentation can settle within 2-4 weeks as a general guide, though this varies significantly depending on the insurer, claim complexity, and required documentation. Complex claims involving disputes over cause, extent of damage, or policy interpretation can take several months. Having a broker can expedite the process through established insurer relationships and proper claim presentation from day one.
Possibly, but not always significantly. It depends on the nature and size of the claim. One claim doesn't necessarily mean huge increases. We've seen clients maintain reasonable premiums even after claims by working with insurers who understand construction risks. The bigger issue is sometimes finding an insurer willing to continue cover after multiple claims, and that's where a specialist broker adds value.
If your claim is denied, your broker will review the denial reason against your policy wording. Often, denials can be challenged if the insurer has misinterpreted coverage or missed key facts. We've navigated declined situations by presenting additional evidence, clarifying policy intent, or working with underwriters like 360 UW who take a pragmatic approach to complex cases.
No, the cost of redoing defective work itself isn't covered. However, if defective work causes damage to other parts of the project, that consequential damage may be covered depending on your policy wording. Some policies include LEG 3 clauses providing broader protection. Note that public liability insurance is also separate and covers different risks.
Generally yes, but check with your broker first. You should secure the site and prevent further damage, but extensive cleanup or repairs before the assessor visits can complicate your claim. Get approval before making permanent repairs. We've seen claims delayed because builders cleaned up too quickly before evidence was documented.
Excesses vary by policy and insurer, typically ranging from $500 to $2,500 for standard claims. Higher-risk scenarios (like theft or water damage) may have higher excesses. Your broker can explain your specific excess structure before an incident occurs. See our full cost guide for more on pricing.
Marel Pencev - Managing Director

REVIEWED BY

Marel Pencev

Managing Director

Last updated: January 2026

Experience

5+ Years

Insurance Broking

Title

Senior Broker

Construction & Commercial

Role

Managing Director

Tank Insurance

Network

Steadfast Group

Australian Owned

Construction materials on site - contract works insurance claims

Need to Lodge a Claim?

If you've experienced damage on your construction site, contact us immediately. We'll guide you through the claims process and advocate for the best possible outcome.

Expert Review: 29/01/2026

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