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Contract works insurance for construction projects

Contract works insurance helps protect construction projects against loss or damage to works during the building period. Contract Works for SME arranged by Marsh supports licensed builders and owner-builders working on residential and light commercial projects.

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What is contract works insurance?

Construction projects involve multiple risks during the build period. Damage to works, materials, or structures can interrupt a project and create additional costs.

Contract works insurance is designed to cover loss or damage to property used for construction projects. This may include materials, equipment, temporary structures such as site offices or formwork, and project documents or records.

Depending on the policy structure, liability cover may also be arranged alongside the contract works policy.

Insurance solution designed for SME builders and projects

Contract Works for SME arranged by Marsh is designed for licensed builders and owner-builders working on residential and light commercial projects.

Policies may be arranged on an annual basis or for a single construction project, depending on the builder and project structure.

The scheme may also provide contract works cover for certain sub-trades, although liability cover is not available for sub-trades under the scheme.

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Key features of Contract Works for SME arranged by Marsh

  • Annual construction policies available for licensed builders with turnover up to $30 million.

  • Project-specific policies available for individual construction projects.

  • Maximum contract value of $10 million for annual and project policies under the scheme.

  • Construction period up to 24 months and maintenance period up to 12 months.

  • Suitable for residential construction and light commercial building projects.

  • Owner builder policies available for existing Marsh clients with projects up to $2 million.

Need cover outside the Contract Works for SME arranged by Marsh?

Contract Works for SME arranged by Marsh is designed for residential and light commercial construction projects that meet specific eligibility requirements.

If your project does not meet these criteria, Marsh brokers may still be able to help arrange construction insurance suited to your project and risk profile.

Speaking with a broker can help identify suitable options based on the size, complexity, and location of your project.

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What does contract works insurance cover?

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Policy types

Contract Works for SME arranged by Marsh offers several policy structures depending on the project and the builder.

  • Annual construction policies can cover multiple projects during the policy period. These policies are available for builders with turnover up to $30 million and contract values up to $10 million.
  • Project-specific policies are designed for a single construction project.
  • Owner-builder policies are available for existing Marsh clients with contract values up to $2 million.
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What's typically covered

Contract works insurance is designed to protect construction works and project property during the building period.

  • This may include buildings under construction, materials, temporary structures, and construction equipment used for the project.
  • Damage may occur due to events such as fire, theft, vandalism, storms, floods, or construction collapse during the building period.
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Who the cover is for

The scheme is designed for:

  • Licensed builders with a current builder's licence
  • Principal-controlled construction projects
  • Owner builders with a valid owner builder licence (existing Marsh clients)
  • Projects typically include residential construction or light commercial buildings.
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What may not fit

Some construction risks may fall outside the SME Contract Works scheme. Examples include:

  • Civil construction projects
  • Projects exceeding six storeys
  • Projects where work has already commenced or is partly completed
  • Stand-alone liability or plant and equipment policies
  • In these situations, a Marsh broker can help explore other insurance options.

Construction projects supported under the scheme

Contract Works for SME arranged by Marsh supports a range of residential and light commercial construction projects.

Examples include the construction or alteration of houses, townhouses, apartment buildings, and commercial premises such as offices, cafés, shops, or other business fit-outs.

Marsh can arrange contract works cover for builders working on these projects to help protect works during the construction period. 

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Why Marsh?

Why should you choose Marsh to arrange your insurance solutions?

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Trusted by 130 associations

We are proud to be the endorsed insurance broker for more than 130 Australian industry groups and member associations, developing insurance solutions that help meet the risk and insurance needs of businesses across a variety of industries.

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Expert management for Vic DBI

Partner with a dedicated team of 10 specialists to help satisfy your statutory obligations, including Domestic Building Insurance in Victoria.

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Claims support

Handling an insurance claim can quickly become overwhelming, not least when your time is stretched to the limit keeping your business going in the backdrop. We help take the load off and manage, negotiate and settle claims with insurers on your behalf.

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Single project cover

We can arrange cover for individual projects – on a case-by-case or ad hoc basis – when you need it most. Large-scale projects and those in natural catastrophe zones suit this form of cover well.

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Large and complex projects

Our specialist brokers work with builders on projects of all sizes, types and complexities. Whatever your project, we can tailor your cover to your most relevant risk exposures.

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Risk management plans

Our dedicated construction brokers are experts in your industry. We can offer you risk management and insurance advice that’s tailored to your needs – and put a risk management plan in place.

Additional cover we can arrange

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Professional indemnity cover

Protect your business against claims of misleading advice, breach of duty and negligence with professional indemnity cover.

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Management liability cover

Help protect your business – and your team – against management and operational risks with management liability cover.

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Business vehicle cover

Need to travel from one job to another to keep your business running? Marsh can arrange business vehicle cover tailored to your needs.

Learn More

Frequently asked questions

Contract works insurance helps protect construction projects against loss or damage to works during the building period.

The SME scheme supports residential and light commercial construction projects such as houses, townhouses, and commercial fit-outs.

Construction works may be exposed to risks such as fire, theft, vandalism, storms, floods, or other accidental damage during the build.

Builders may arrange through Marsh annual construction policies covering multiple projects or project-specific policies for a single build.

The scheme is designed for licensed builders, principal-controlled projects, and owner builders who meet the scheme eligibility requirements.

The scheme supports contract values up to $10 million for annual and project policies and up to $2 million for owner-builder policies.

The scheme allows a construction period of up to 24 months. A maintenance period of up to 12 months may also apply, depending on the policy.

Contract works cover may be available for certain sub-trades under the scheme. Public liability cover for subcontractors must be arranged separately.

Civil construction projects are not suitable for the SME Contract Works scheme and may require alternative construction insurance solutions.

Projects where work has already partly commenced are generally not suitable for the SME Contract Works scheme.

Owner-builder policies may be available for existing Marsh clients with contract values up to $2 million.

If your project falls outside the SME scheme, a Marsh broker may still be able to assist in arranging construction insurance suited to the project.

Contract works insurance articles and resources

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Cyber attacks in construction projects

02/06/2026

Learn how cyber attacks can disrupt construction projects in Australia and what contractors and developers can do to strengthen cyber resilience.
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Navigating a contract works claim five tips

14/08/2025

Navigating a contract works claim: 5 tips to ensure a successful claims experience
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Top risks for the construction industry

29/07/2025

From rising costs to the threat of cyber attack, we explore the risks and exposures that can affect builders and building companies.

This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238 983) (“Marsh”) and Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (“MAI”) arrange the general insurance (i.e. not the Discretionary Trust Arrangement) and are not the insurer.

Discretionary Trust Arrangements are issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417 964) (“JGS”). Any advice or dealing in relation to a Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). The cover provided by a Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements (PDSs) available from the relevant product issuer. Target Market Determinations (TMDs) are available here.

Marsh, MAI, JGS and JLT are all businesses of the Marsh group.

LCPA 26/2788