How Do You Claim on Contract Works Insurance?

If something is damaged or stolen on site, here is how a contract works insurance claim usually goes, step by step, whether you have run jobs for years or are new to contracting.

Understanding contract works insurance

What is contract works insurance?

Contract works insurance is insurance designed to protect contractors and tradespeople from a range of risks on a building project. It typically covers loss of or damage to the works and materials on site, including theft from the site, depending on the policy. Some policies also include other work-related cover, such as public liability.

What a policy covers depends on its wording, limits, excesses and exclusions, and the insurer decides whether a claim is paid, so read the PDS (product disclosure statement) or policy wording before you decide.

Why it matters for tradies and contractors

For tradies and contractors, this insurance acts as a financial safety net for the project. It sits alongside other covers, such as tool insurance for your tools of trade and professional indemnity cover for project-related risks.

The claims process, step by step

Step 1: Understand your policy

Before you make a claim, it's important to have a clear grasp of your contract works insurance policy. This includes knowing what the policy covers on site, how your tool insurance works alongside it, and the specific conditions under which you can claim. It's a good idea to review your policy periodically, especially before starting a new project, to check your cover still suits your current work. Remember, policies can vary significantly, so never assume that what applied in a previous situation will hold true in a new one.

Step 2: Report the incident

In the event of an incident, such as theft or damage, report it to your insurer (or your broker) as soon as possible. Prompt notice is often a condition of the policy, and it gives the insurer what it needs to assess your claim. When reporting, be as detailed as possible, including the date, time and circumstances of the incident. This level of detail will be particularly helpful if the incident involves third-party damage or injuries, which can complicate claims.

Step 3: Gather the documents

Gathering comprehensive documentation is a critical step in the claims process. This includes police reports for theft or vandalism, photographs of the damage, and detailed records of the works and materials affected. If tools were stolen or damaged too, that part usually goes to your tool insurance, so keep receipts and proof of purchase for your equipment. Additionally, if there are witnesses to the incident, their statements can be invaluable in supporting your claim.

Step 4: Submit the claim

When you're ready to submit your claim, complete all required forms accurately and in full. If you're unsure about any part of the claim form, it's better to ask your insurer or broker than risk submitting incorrect information. Double-check that you have attached all necessary documentation before you submit it. This careful approach can significantly reduce the likelihood of delays or disputes about your claim.

Step 5: Claim assessment

After submission, your insurer will assess your claim, a process that may vary in length depending on its complexity. During this phase, the insurer might ask for more information or clarification, so be prepared to respond promptly. It's also good practice to keep a record of all communications with your insurer during this period, as this can help you track the progress of your claim and resolve any issues that may arise.

Step 6: Resolution and payout

The final stage is the insurer's decision on your claim and, if the claim is accepted, the payout. It's important to understand how your insurer will settle the claim: through a cash settlement, or repair or replacement of the damaged works. The excess on your policy is usually taken off what the insurer pays. If the settlement offer does not match your expectations or the terms of your policy, don't hesitate to discuss it with your insurer. Finally, once the claim is settled, review your policy to see whether any changes are needed for future projects.

Tips for a smoother claim

Keep accurate records

Keep detailed records of your materials, contracts and any incident reports. This makes the claims process for business insurance for tradies more straightforward.

Understand policy exclusions

Be aware of what your policy does not cover. This clarity will save you from unwelcome surprises during the claim process.

Ask for help

If you need to claim, call us. We manage your claim with the insurer from start to finish. The insurer decides whether it's paid and how much.

A contract works claim does not have to be hard. By understanding your policy, keeping accurate records and following the insurer's claims steps, you can make the process smoother when something goes wrong on site, and get back to your trade.

For help with insurance for tradies, consider reaching out to Tradies365. Our brokers arrange cover for contractors and tradespeople and can compare policies from insurers to help you choose. Contact Tradies365 for more information.