Contract works cover is a type of insurance policy that protects contractors and builders from financial losses arising from damage to construction projects. It is a form of insurance that covers the work done on a project, materials used, and equipment used.
This form of insurance is essential for any construction project as it offers financial protection for the contractor and the client against any unexpected event that could delay or stop the project, damage the property under construction, or cause injury to workers.
The contract works cover policy covers loss or damage to the property under construction, including the building materials, equipment, and tools used in the construction process. It can also cover loss or damage caused by third-party claims, such as injury or death of workers, damage caused by natural disasters, and third-party property damage.
The policy generally covers the construction period and may extend to include the maintenance period after construction. The insurance company may also offer additional coverage options, depending on the type of project and the level of risk involved. These options may include cover for legal expenses, professional indemnity, and public liability.
It`s important to note that this policy is different from standard property or liability insurance. Contract works cover is specifically designed for construction projects and provides cover for risks specific to the construction industry.
As a contractor or builder, it`s important to ensure that you have a contract works cover in place before starting any construction project. This will provide you with peace of mind knowing that you are financially protected in case of any unexpected events that may arise during the project.
In conclusion, contract works cover is an essential insurance policy for contractors and builders. It provides financial protection against unexpected events that may delay or stop the project, cause damage to the property, or result in injury or death of workers. It`s important to ensure that you have this policy in place before starting any construction project to mitigate any potential risks and protect yourself and your clients.