What you need to know
Construction projects carry risk at every stage from groundworks through to practical completion. A properly structured programme covers the works themselves, the plant and equipment being used, and the liability exposures that arise throughout the project.
Contract conditions on New Zealand construction projects increasingly specify minimum insurance requirements that principals and head contractors must meet. Understanding what your contract requires and ensuring your programme meets those requirements is an area where we can add real value.
What we help with
A comprehensive construction insurance programme, structured to protect contractors, developers, and project owners across the works, plant and equipment, and liability exposures from groundworks through to practical completion — ensuring every stage of your project carries the cover it needs before a problem arises.
What's generally covered
Contract Works
Covers physical loss or damage to the works under construction, from groundbreak through to practical completion, against insured events including fire, storm, flood, theft, and accidental damage. Available on a project-specific or annual basis. Note: the policy responds to damage caused by insured events — the cost of rectifying faulty workmanship itself is not covered.
Material Damage
Tools and equipment are constantly on the move kept in vehicles, stored on site, and used across multiple jobs.
Contractors' Plant & Machinery
Covers owned, hired, and leased plant and machinery used on site. Can be structured as a scheduled or blanket policy. Options include agreed value (removing underinsurance risk at claim time), loss of revenue or additional costs of working (covering financial losses while plant is out of action), and payment protection for plant under finance or hire purchase arrangements.
Contractors' Liability
Public & products liability, arising from construction operations
Covers third-party property damage and bodily injury arising from construction operations, and extends to product liability for injury or damage caused by goods supplied or installed. Note: most public liability policies exclude damage to the work itself caused by faulty workmanship. We can advise on policies that include faulty workmanship cover extensions where this is required under your contract or needed for your exposure. Limit requirements vary by project and contract conditions.
Employers Liability
Can cover legal liability to employees for injury claims that fall outside the ACC scheme including mental injury claims, claims from overseas workers not covered by ACC, and civil liability actions. Also relevant where labour-only subcontractors are engaged, depending on the engagement structure.
Professional Indemnity
When you carry design responsibility issuing producer statements, certifying structural elements, or coordinating sub-consultants your exposure doesn't end at handover. Subject to policy terms and conditions, cover typically responds to claims arising from design errors, documentation failures, and sub-consultant acts you're vicariously responsible for covering defence costs and damages awarded against you.
Statutory Liability
Covers defence costs for regulatory proceedings under statutes including the Building Act, along with any insurable fines or reparation costs ordered by the Courts. Fines imposed under the Health and Safety at Work Act 2015, Employment Relations Act 2000, Resource Management Act 1991, or any legislation where indemnification is prohibited by law are not covered.
Commercial Vehicles
Covers the fleet of vehicles used in your construction business utes, trucks, trailers, and heavy vehicles. Can be structured as a fleet policy or on an individual vehicle basis, with options for agreed value and third-party liability.
Trade Credit Insurance
Protects against non-payment by clients or principals particularly relevant where progress payments or retentions are at risk. Useful for contractors with significant debtors exposure on larger contracts.
The information on this page is general in nature and does not take into account your individual circumstances, contract obligations, or risk profile. Contract requirements vary significantly by project, and the scope of cover available differs considerably between policies. We recommend reviewing your insurance obligations under the contract before work commences not at renewal. If you're unsure what's required or what's covered, speak with us. All cover is subject to policy terms and conditions.