As a surprisingly affordable section of cover, Contract Works is often overlooked as not being ‘essential’ in an insurance policy. We believe this is down to a lack of understanding as to what is covered by Contract Works, and what isn’t covered under Public Liability.
The easiest way to help define what is covered under Contract Works is through examples:
1. A builder is 75% of the way through an oak framed garden room, and a storm damages the roof and subsequently the structure. It’s the builders responsibility to rebuild the structure at their own cost, which can be insured for through Contract Works insurance.
2. An electrician had laid £2,500 worth of cabling into a new build property, which was stolen overnight. The contract was for £2,750 worth of cabling to be installed, therefore rendering the contract incomplete. In this case, the electrician would be responsible for replacing and relaying the cables.
3. A domestic appliance installer was connecting a 60″ 4K television, and accidentally knocked it off the stand. As it was a stock item for the job (still in their custody or control at that point) they would have to stand the cost, which would fall under a Contract Works policy.
Contract Works insurance applies to any on going work or stock, prior to the completion of the contract. Many people assume Public Liability will cover the above examples, but it is actually covering loss or damage to Third Party Property.
If you require contract works on your insurance or want to discuss the cover in more detail, please contact your local office to obtain a quotation.