Contract Works vs Public Liability Insurance

Yes, most builders need both. They cover completely different risks. Contract Works protects your project from physical damage (fire, storm, theft). Public Liability protects you from claims by third parties for injury or property damage. Having one doesn't replace the need for the other. We regularly see clients confused about which policy covers what - getting clear on this early prevents costly gaps.

Yes, many insurers offer bundled policies that include Contract Works and Public Liability together. For builders with $500K-$1M turnover, combined annual packages typically cost between $4,500 and $8,500, often including $10M Public Liability. This is generally more cost-effective than buying separately and ensures there are no gaps between the two policies.

Not automatically. Check your building contract to see who is responsible for arranging Contract Works cover. We've seen homeowners assume they're covered when they're not - particularly when they describe themselves as 'owner builders' but are actually engaging a licensed builder. In those cases, the builder needs to arrange the Contract Works cover, not the homeowner. Ask to be noted as an interested party on your builder's policy.

That's a Public Liability claim, not Contract Works. If your works cause damage to neighbouring properties (scaffold falls on their fence, dust damages their car, etc.), Public Liability responds. Contract Works only covers your project, not third-party property.

No. Theft of your materials or equipment is covered by Contract Works (or a separate Tools policy). Public Liability only covers claims where you're legally liable for causing harm to others. Theft is a first-party loss to your own property. Learn how to make a claim if you experience theft.

Both can apply depending on the situation. If a subcontractor's work is damaged by storm or theft, Contract Works covers the project. If a subcontractor injures someone or damages third-party property, Public Liability responds. Note that arrangements with 100% subcontractors are typically scrutinised more heavily by insurers and may face declines - subcontractors should carry their own insurance.

These are completely different products. Contract Works covers physical damage during construction (fire, storm, theft). Home Warranty Insurance (administered by iCare in NSW) protects homeowners if the builder can't complete the work or fix defects - it's a consumer protection product, not construction insurance. Confusion between these is common, so check which one applies to your situation.