FOR LICENSED BUILDERS
Contract Works Insurance for Commercial Builders
Annual contract works cover for licensed builders running multiple projects, larger contracts, or complex risks. Specialist construction underwriter access for turnover-based placements.
9
Specialist insurers on panel
$34K
Largest annual terms sourced
24h
Typical quote turnaround
THE SHORT ANSWER
Licensed commercial builders typically pay $8,600 to $34,000 per year for annual contract works insurance. Single-project cover for jobs in the $500K-$1.6M range typically runs $3,500 to $10,700 depending on project value, scope, and site risk.
Pricing depends on turnover band, subcontractor ratio, claims history, and insurer appetite. The premium range reflects real placements from our portfolio - from smaller licensed builders at the $8,500 tier through to larger operators sitting in the $25,000-$35,000 range. Your actual premium depends on your specific risk profile.
WHO WE PLACE COVER FOR
Licensed Builders at Every Tier
Our panel and experience suits commercial and residential builders running annual policies. Here's who we typically work with.
Licensed Builders Scaling Up
Builders moving from single-project cover to annual policies as project frequency grows. We have placed annual contract works cover for builders turning over $500K-$1M at approximately $25,600 per year, including builders with both public liability and contract works bundled together.
Multi-Project Residential Developers
Builders running several $700K-$900K projects concurrently, including renovations, new builds, and extensions. Annual policies based on declared turnover avoid the admin burden of placing a separate policy for each job.
Commercial-Tier Builders
Licensed builders running annual policies in the $25,000-$35,000 premium range. We have sourced terms up to approximately $34,000 across a four-insurer panel (Mecon, ATC, Hutch, 360 Underwriting) for builders at this tier.
Builders With Complex Histories
Previous voluntary administration, prior claims, 100% subcontractor workforces, or less than four years trading history. These risks are routinely declined by generalist insurers. Specialist underwriters will often take a considered view if presented properly.
REAL PLACEMENTS
What Commercial Builders Actually Pay
Anonymised examples from our portfolio. All gross premiums (rounded up to the nearest $100) drawn from real terms placed or quoted in the last 12-18 months.
Licensed NSW builder with revenue in the $500K-$1M band. Placed an annual contract works policy bundled with public liability.
Placed via a specialist construction underwriter after review of activities and licence verification.
Licensed builder with approximately $1M turnover, $700K-$900K per project, 12% subcontractor mix. Prior voluntary administration on the record.
Three specialist underwriters declined on the VA history. A fourth reviewed the file and placed the cover. Claim handled mid-2025 for stolen materials on-site.
Commercial-tier builder seeking annual contract works replacement. Four-insurer panel quoted, terms obtained at mid-$30K range.
Mecon, ATC, Hutch, and 360 Underwriting all engaged. Terms presented with $2,200 broker fee transparency.
Duplex with demolition of existing structure, 15-month build, 60% subcontractor workforce. Quoted Jan 2026.
Two specialist construction underwriters quoted within range. A third declined at referral stage on appetite at the time.
Small licensed builder renewing annual contract works. Four competitive quotes obtained at renewal showing market movement.
Mecon, Hutch, and both 360 Underwriting construction products (Quick Construct and Construct & Engineering) engaged at renewal.
Residential builder, turnover $100K, seeking standalone public liability then contract works. Several generalist insurers declined on occupation grounds.
Several generalist insurers declined on occupation grounds. Specialist construction markets including 360 Underwriting and Mecon quoted within appetite.
Why we share this: Generic online quote tools give you a ballpark. Real placement data from our portfolio shows you what licensed builders at different turnover tiers actually pay. Your quote may differ based on your specific project mix, claims history, and underwriter appetite.
PRICING FACTORS
What Drives Commercial Builder Premiums
Six factors that matter most when an underwriter is pricing an annual contract works policy for a licensed builder.
Turnover Band
Annual policies are priced on declared turnover. A builder turning over $500K-$1M will sit in a different pricing tier to a builder at $3M-$5M. Our portfolio shows these tiers cleanly: small-builder annual policies around $8,500-$10,000, and larger-builder policies reaching $26,000-$50,000.
Subcontractor Ratio
Insurers scrutinise subcontractor workforce percentages. A 100% subcontractor model is typically declined. A mix of direct employees and subbies (for example 12% subbie work with the balance in direct labour) sits comfortably with most specialist underwriters.
Maximum Contract Value
Annual policies carry a per-project limit. A policy might cover unlimited $1M projects but exclude a single $8M project without endorsement. We review your likely project pipeline at quote stage so your cover matches the actual work.
Builder Experience
At the time of writing, Hutch Underwriting applies a minimum four-year trading-history threshold, and other specialist underwriters apply similar thresholds. For builders under this mark, the viable market narrows but does not disappear. Appetite can change, so we re-test the market at each placement.
Excavation Depth
Excavation greater than three metres triggers manual underwriting review at most insurers. Deep basements, commercial footings, or sites near boundary walls need specialist assessment and often carry a premium loading.
Prior Claims or Financial History
Previous voluntary administration, recent claims, or started works can trigger declines. These are placeable risks but need the right underwriter. Generalist insurers almost always decline on these grounds.
COMPLEX PLACEMENTS
When Generalist Insurers Decline
Much of our commercial builder work involves risks that specialist construction underwriters handle but generalist insurers routinely decline to quote. The patterns are consistent.
Common Declines (Current Market)
- → Started works (generally outside appetite across most markets)
- → Less than four years trading history (currently outside the appetite of several specialist underwriters we quote with)
- → 100% subcontractor workforce (typically outside appetite across most markets)
- → Previous voluntary administration (several specialist markets decline before one will consider)
- → Residential builder occupation (several generalist insurers have declined on occupation grounds in recent placements)
Real Example: VA History Placed
A builder with approximately $1M turnover and prior voluntary administration was declined by three specialist underwriters. We approached a fourth specialist construction underwriter who was willing to review the file and secured cover at approximately $5,200 in the first year. The client has renewed multiple times, the policy grew to approximately $8,600 as their project scale increased, and we have since managed a claim for stolen materials on-site.
Market Access
Our Construction Insurer Panel
We don't run your business through a generic online quote platform. We speak directly to underwriters at Australia's leading construction agencies to find the right home for your risk.
Insurance Partners
Want to compare pricing across builder tiers? See our contract works insurance cost guide. For single projects rather than annual cover, read about single-project cover. If you're comparing policies, our contract works vs public liability breakdown explains how they work together.
COMMERCIAL BUILDER FAQS
Common Questions From Licensed Builders
REVIEWED BY
Marel Pencev
Managing Director
Last updated: April 2026
Experience
5+ Years
Insurance Broking
Specialty
Construction
Contract Works & PL
Role
Managing Director
Tank Insurance
Network
Steadfast Group
Australian Owned
Placement for Licensed Commercial Builders
Tell us about your build book, turnover, and any insurer history we should know about. We typically source competitive terms from the specialist construction market within 24 hours, subject to insurer response.