Contract Works Insurance Covers Subbies Too!

Public liability insurance for builders and tradies

Well, it should do. Regardless of who arranges it generally sub-contractors can and usually are included under the policy. That means it doesn’t matter if it’s the builder, the owner or a subbie who damages the works, the contract works policy will cover it. Who pays the excess is then the only question, and if you have a good contract it should set out the rules for this.

We have had three situations recently where subbies have been asked by their main contractor to pay for damage they’ve done to materials that are part of the job. One was a deck that had cedar oil spilled on it, another was for a smashed window in a new build and the third was damaged roofing iron. These should be contract works insurance claims.

So, if you are a subbie and do cause some damage be aware that the contract works insurance is there to cover you too! Because we are talking about damage to the works themselves you may find that your liability insurance won’t cover it (this is complicated and depends on the specific circumstances of what is damaged and when) or will only apply over and above any contract works claim first.

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