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Last updated: 23 July 2025
Everything you need to know about contract works insurance
Contract works insurance can protect tradespeople against accidental loss, damage, or destruction, while a property is being built. This article looks at what it is and what it covers.
Contract works insurance isn’t like other types of insurance associated with the construction industry. You can purchase it as an add-on or standalone insurance product.
As a result, it might not be included in other insurance you may already have. If your trade business is involved in construction activities it could be really useful to have.
What is contract works insurance?
Contract works insurance provides cover for accidental loss, damage or destruction to a temporary or permanent structure while it is being built. It can sometimes be overlooked by tradespeople, who may not think it is necessary.
This type of insurance can also be called contractors’ all risk insurance. However, they're not always the same thing as insurers have different ways of packaging up policies. So always check what type of cover you are buying.
If you’re responsible for a building during its construction, then it’s worth checking whether your trade business might want to consider being covered by contract works insurance.
For example, contractors' all risk insurance can be quite wide-ranging. It might even include contract works. However, you wouldn’t want to duplicate the insurance.
Why you might need a broad selection of insurance for construction work
There is a wide range of construction insurance and contract works insurance is just one for you to consider. If you are a builder, this useful guide can help you understand what types of insurance you might need.
Having contract works insurance is another way you might protect your business against a wide range of potential threats. What's more, as a Checkatrade member, you could enjoy a 20% discount on public liability insurance* via our partner Superscript. They also provide other types of insurance, including contract works cover. Simply log in to our Member's Area today to see our latest deals!
Is your trade business covered?
Checkatrade members can get the insurance they need for less
With contract works insurance, it’s worth bearing in mind that:
Contract works might be additional cover that you buy in addition to other building-related insurance
You may need to extend the cover if a project goes on longer than expected
You might want to take out cover on a project-by-project basis or as an annual insurance policy for your trade business
Contract works insurance is not the same as public liability insurance. Public liability insurance is designed to cover claims made against you by members of the public for property damage and accidental bodily injury, illness, disease or even death as a result of your work.
Who needs contract works insurance?
If you're a tradesperson carrying out construction-related work you might want to consider the need to invest in a wide selection of insurance.
The risks involved in construction can be high and you could be liable if things go wrong. According to recent statistics, some trade businesses don't have enough of the right types of cover to protect their livelihoods:
The proportion of SMEs without any insurance cover rose from 40% in 2021 to 44% in 2022
More than half a million SMEs wouldn’t survive if they had to pay up to £10,000 towards a claim that wasn’t fully covered by insurance
In 2022, fire was the largest single cause of business insurance losses
Trades that might want to consider contract works insurance include:
Builders
Electricians
Plumbers
Carpenters
Bricklayers
Plasterers
Contractors and sub-contractors should check they are covered
Is your trade business covered?
Checkatrade members can get the insurance they need for less
What does this type of insurance cover?
Contract works insurance covers building work completed to date on projects. It usually covers you for things beyond your control, such as:
Fire
Storm
Flood
Vandalism
Theft
Collapse of a building
Natural catastrophes, such as cyclones or earthquakes
It also covers for accidents that could happen when transporting materials you’re using for the build, and damage to the materials if they’re stored near the development you’re building. Contact works cover is particularly relevant if you’re building a property to sell on.
You’ll need to check whether the policy covers specifically for these additional trade-related risks:
Damage or loss of tools and equipment
Damage or loss of plant and machinery
Damage to materials kept on-site
Damage to temporary buildings, like toilets, office and storage huts (including if they have been hired)
These areas may be excluded from a contract works insurance policy, such as:
Damage caused by faulty design
Breakdown of plant and equipment
How does contract works differ from professional indemnity insurance?
Professional indemnity insurance is a different type of insurance from contract works insurance. It protects a trade business against negligence and errors on a job. For example, if there are defects in the design of a building or advice or consultancy you give as part of the build.
Again, you’ll need to check very carefully that you have the right type of cover for the type of construction work you are undertaking
FAQs
Why might you need insurance for contract works?
As a tradesperson involved in any construction project, you should consider your options when it comes to insurance. Especially if you think you may be held liable for any accidental loss, damage, or destruction to property during construction.
What does contract works insurance cover?
It provides cover against accidental loss, damage or destruction to a temporary or permanent structure you, or a contractor you hire, are building. It also covers for accidents that could happen when transporting materials, and damage to the materials if they’re stored near the development you’re building. This cover is particularly relevant if you’re building a property to sell on.
Is contract works insurance the same as professional indemnity?
No. They provide different types of cover for tradespeople. It’s probably worth reviewing whether you need both.
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Content disclaimer: This content has been created for general information purposes and should not be taken as formal advice. Read our full disclaimer here.
* As you’d expect, terms and conditions apply. Enro Ltd t/a Superscript is authorised and regulated by the Financial Conduct Authority. The discount offer of 20% off Public Liability for Checkatrade Members (‘the Offer’) is only available to Checkatrade Members who are new Superscript customers. The Offer will be applied to your Superscript policy for a lifetime (applied continuously at renewal). You will be informed of any price changes in good time, prior to the anniversary of your policy.
The Offer will not apply to cancellation fees, and cannot be retrospectively applied. In the event that you cancel your Superscript policy within the first 6 months of cover, we reserve the right to deduct, withhold or charge the total value of the Offer from any payments due to or from you. To be eligible, you must have been directed from Covea or Checkatrade by clicking on the appropriate link or receiving an email directly.
The Superscript Offer is not assignable. The Offer will be automatically applied to your account by Superscript. It will be applied each month, regardless of annual or monthly payment option selection. There is no cash alternative. The Offer cannot be used in conjunction with any other Superscript offer, voucher or promotional benefit. The Offer is subject to eligibility requirements. We reserve the right to withdraw the Offer at any time. Terms and conditions are subject to change and you may not be informed.
