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When you’re working on a construction project, a lot can go wrong. From storms and fires to vandalism and theft, the unexpected can throw you off course and leave you facing significant costs. Without the right insurance, events like these could devastate your finances.
At Markel Direct we believe we offer excellent value for contract works insurance, because we understand that every business is unique and tailor your policy to suit your precise needs. Whether you’re a builder, electrician, plumber or any other type of tradesperson, we’ll have a policy that’s just right for you.
In this guide you’ll see who should considering obtaining the appropriate level of cover, how much it costs and why it’s important for tradespeople who typically works on a construction site.
Cover at a glance:
- Covers damage to work caused by flood, fire, theft or act of malicious damage
- Protection for tools, materials, labour and temporary structures
- Policies built around your specific business needs
- Suitable for builders, developers and contractors
What is contract works insurance?
Designed for builders and other tradespeople, insurance for contract works pays out if a construction project is affected by an insured event such as a flood, fire, theft or act of malicious damage. Whatever stage of the build you’re at - whether you’re laying the foundations for an extension or making the finishing touches to a new block of flats - any work you have already completed will be covered.
The tools, materials, and labour needed to get your project back to where it was before the damage occurred can be included in a comprehensive policy, such as Markel Direct’s contract works insurance. As a result, you can repair or redo the work without being out of pocket.
Why choose Markel Direct for your contract works insurance?
Here are just some of the reasons to purchase your cover from us:
Contract works cover from
£20.00 per month
*Based on an electrician requiring £100,000 contract works cover.
Do I need contract works insurance?
No matter how careful you are to minimise risks, there’s always a chance that something will go wrong on a building site. And in many cases, these problems are beyond your control. For example, you might have nearly finished a house extension when strong winds rip the roof off the structure.
If the contract you have signed with your client holds you responsible for unfinished work, you could face major costs in a scenario like this. As well as replacing any materials and tools damaged by the storm, you’ll have to foot the bill for the labour needed to get the project back on track.
These costs could run into an eye watering amount and the more work you have already put into a project, the greater the costs can be. If you would struggle to bear this expense yourself, ensuring that you have the appropriate level of contract works insurance is a worthwhile consideration.
But it’s not just builders who need contract works insurance, many different businesses and tradespeople should consider taking out a policy. From electricians to plasterers to carpenters, anyone who works in the construction industry and is liable for projects while they are in progress can benefit from contract works insurance cover.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
What does contract works insurance cover?
Contract works insurance can cover the costs associated with damage to construction projects while they are in progress. This can include damage caused by events such as fire, flood, storm, theft, or vandalism. A contract works policy can help cover the cost of repairing or redoing completed work, replacing damaged materials, and the labour required to return a project to its previous stage, following:
What is covered
What is not covered
What is the difference between contract works insurance vs. professional indemnity?
Contract works insurance covers damage to in-progress construction projects, whereas professional indemnity insurance protects against claims of negligence in professional services you have provided. If, as a tradesperson, you offer any advice, designs, or other services for a fee, it’s important to have this type of insurance cover.
For example, you’re a carpenter and you provided designs for a bespoke kitchen installation. The client claims you made a mistake on the designs which has caused a costly delay to their renovation project. Professional indemnity insurance would cover the cost of defending the claim and any compensation awarded against you.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Indicative quotes
Builder
- Limited company
- 0 employees
- £80,000 turnover
- Exeter
- (£309.01/yr)
- £30.90/mo
- Contract works £100,000
- Public & products liability £1m
- Employers' liability
- Cyber
House builders
- Limited company
- 0 employees
- £70,000 turnover
- Ipswich
- (£292.32/yr)
- £29.24/mo
- Contract works £100,000
- Public & products liability £1m
- Employers' liability
- Cyber
Groundworks
- Limited company
- 0 employees
- £60,000 turnover
- Peterborough
- (£726.71/yr)
- £72.68/mo
- Contract works £100,000
- Public & products liability £5m
- Employers' liability
- Cyber
*Final price payable is subject to underwriting criteria and acceptance. AI images are used on this website to depict example customer types. Any resemblance to an actual person is purely coincidental.
How much does contract works insurance cost?
At Markel Direct, we offer contract works insurance from £20 a month for £100,000 of contract works insurance cover*. When it comes to insurance, the cost varies from business to business depending on;
- The size of your business - your turnover and whether you have any employees
- The level of cover you choose
- The types of projects you work on and the equipment you use.
To get a clearer idea of how much you’ll pay, simply get a quote online. *Price based on a builder requiring £100,000 of contract works insurance.
*Price based on an electrician requiring £100,00 contract works cover.
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Our simple quote process will help you to find the right business insurance for your individual needs.
Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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What isn’t covered by contract works insurance?
Contract works insurance does not cover existing structures on a construction site. For example, if you’re building an extension to a home and there’s a fire at the property, insurance for contract works would pay to repair the extension work in progress, but it would not cover damage to the rest of the home.
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Is contract works insurance the same as contractors all risk?
The terms ‘contract works insurance’ and ‘contractors all risk insurance’ are often used interchangeably though they actually mean different things. Contract works insurance specifically covers the risks associated with an in-progress construction project, while contractors all risk insurance is a broader cover which may or may not include contract works insurance.
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What level of cover do I need?
Your contract works insurance should be sufficient to cover the highest value projects you work on. Think about the costs you may face working on your biggest projects if things go wrong, potentially very close to the completion of the work. Take all expenses into account, including materials and labour.
If you’re not sure how much cover you need, don’t hesitate to contact our specialists for advice.
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How are Markel Direct regulated?
Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023.
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