Contract Works / Civil Works

In New Zealand, contract works insurance typically encompasses both construction or contract works insurance and civil works insurance. These types of insurance are designed to provide coverage for risks associated with construction projects, whether they involve buildings, homes, alterations, infrastructure, or civil engineering works. Here’s a brief overview of both types of insurance:

  1. Contract Works Insurance:
    • Coverage: This type of insurance, also known as construction all risks (CAR) insurance, is designed to protect construction projects during the construction phase. It covers physical damage or loss to the construction project, including the building, materials, and equipment.
    • Duration: The policy typically spans from the start of construction until completion. Some policies may also extend coverage to include the maintenance or defects liability period.
    • Parties Covered: Property owners, contractors, subcontractors, and other stakeholders involved in the construction project are typically covered.
  2. Civil Works Insurance:
    • Scope: Civil works insurance is a specific subset of contract works insurance that focuses on civil engineering projects, such as roads, bridges, dams, and other infrastructure projects.
    • Coverage: It provides coverage for the unique risks associated with civil engineering works, including construction materials, equipment, and liabilities related to third-party property damage or bodily injury.
    • Parties Covered: Similar to contract works insurance, civil works insurance covers parties involved in the civil engineering project.
  3. Contractual Requirements:
    • Many construction contracts, whether for buildings or civil engineering projects, often require the parties involved to obtain contract works insurance to mitigate potential risks. It’s important to review and comply with the insurance requirements specified in the contract.
  4. Insurance Brokers:
    • Engaging the services of an insurance broker can be beneficial. Brokers can assist in navigating the complexities of insurance policies, identifying suitable coverage options, and obtaining quotes from different insurers.
  5. Claims Process:
    • In the event of a loss or damage, the insured party should promptly notify the insurer and follow the claims process outlined in the policy. Thorough documentation is crucial for a smooth claims settlement process.

When considering contract works or civil works insurance in New Zealand, it’s essential to tailor the coverage to the specific needs and risks associated with the project. Working closely with insurance professionals and legal advisors can help ensure that the insurance policy meets contractual requirements and provides comprehensive coverage for the construction or civil engineering works.