Civil Contractors Insurance

Contractor Plant and Machinery Insurance may be relevant if a civil contracting business owns, hires or operates mobile plant, heavy machinery or specialised equipment used on construction, road, subdivision or infrastructure projects.

Tools and Equipment Insurance may not cover larger plant, attachments or hired-in machinery unless the items and their use are declared to and accepted by the insurer.

Cover may include:

• Theft, fire, storm, vandalism and accidental damage to insured plant
• Owned plant and hired-in plant, where included
• Excavators, loaders, graders, dozers, rollers, skid steers, trenchers, compactors, cranes and other declared machinery
• Declared attachments, accessories and auxiliary equipment
• Plant in transit, storage or use on site, where covered
• Registered or unregistered machinery, depending on the policy
• Wet hire and dry hire exposure, where declared and accepted
• Damage waiver arrangements for hire customers, where available
• Machinery breakdown and consequential loss extensions, where available

Tools and Equipment Insurance, which insurers may refer to as General Property Insurance, can help cover insured tools and portable equipment used by civil contractors, subject to the policy wording.

Civil contractors may carry hand tools, power tools, laser levels, pipe lasers, service-locating equipment, compact testing equipment, site radios, safety gear and other portable items between depots, vehicles and project sites.

Small Contractors 1 to 5 Employees

For sole traders and small civil crews, Tools and Equipment Insurance may cover declared tools and portable items stored in utes, trailers, garages, workshops, depots or at work sites.

Covered items may include:

• Hand tools and power tools
• Laser levels, pipe lasers and survey equipment
• Testing, measuring and service-locating equipment
• Portable pumps, compactors, concrete saws and other smaller site equipment
• Safety equipment, signage, barriers and traffic-control equipment
• Laptops, tablets or portable electronic equipment used for work, where included
• Tools and equipment stored in vehicles or trailers, where declared and accepted

Larger Contractors

For larger civil contracting businesses, Tools and Equipment Insurance may be structured around multiple crews, service vehicles, storage locations and scheduled high-value items.

Cover may be arranged for:

• Multiple tool kits used by different crews
• Equipment stored across depots, workshops, vehicles and project sites
• Portable equipment used across multiple civil and infrastructure projects
• Higher-value surveying, testing, measurement or service-locating equipment
• Hired-in or borrowed equipment, where available

Cover away from insured premises, overnight theft from vehicles, unattended equipment and theft without forcible entry may be limited or excluded. Storage and security requirements should be checked against the policy wording.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Commercial Vehicle Insurance may cover eligible vehicles used by civil contractors, including utes, service vehicles, trucks, tippers, prime movers, trailers and other work vehicles. Available cover depends on the vehicle, its use, drivers and the selected policy.

Civil contractors often depend on vehicles for transporting workers, tools, equipment, materials and machinery between depots, suppliers and project sites.

Small Contractors 1 to 5 Employees

For sole traders and small civil crews, Commercial Vehicle Insurance may cover declared vehicles used for business travel, deliveries, towing and transport between work locations.

Cover may include:

• Utes, vans, service vehicles, trucks and tippers
• Plant floats and equipment trailers, where declared and accepted
• Accidental vehicle damage, fire or theft, depending on the selected cover
• Third-party property damage liability arising from use of an insured vehicle
• Site, road reserve and off-road use, where declared and accepted
• Finance clauses or interested party endorsements, where required and available

Larger Contractors

For larger civil contractors, fleet insurance may provide one arrangement for multiple eligible vehicles used by different drivers, crews and project locations.

Fleet cover may help manage:

• Multiple eligible vehicles under one policy arrangement
• Vehicle additions and removals as the fleet changes
• Utes, service vehicles, tippers, trucks, prime movers, floats and trailers
• Different vehicle uses and driver arrangements, where accepted
• Site access, road reserve and off-road driving, where accepted
• Finance and leasing requirements
• Claims support across multiple insured vehicles

Tools, stock, plant and materials carried on or in a vehicle may require separate insurance. Commercial Vehicle Insurance is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Contract Works Insurance may be relevant where a civil contractor is responsible for insured works in progress, materials or project obligations under a construction contract.

Civil contractors may consider Contract Works Insurance for road construction, drainage, subdivisions, retaining walls, concrete structures, bridges, culverts, utilities, rail work and other infrastructure projects where damage to incomplete works or insured materials could create repair costs and delays.

Cover may include:

• Insured works in progress
• Materials stored on site
• Theft, vandalism, fire or storm damage to insured works
• Project-specific or annual cover options
• Materials in transit or temporary storage, where included
• Principal-supplied materials, where covered
• Existing structures, testing or commissioning exposure, where declared and accepted

A builder, developer, council, government agency, principal contractor or project owner may require Contract Works Insurance. The required parties, values, activities, period of cover and policy terms depend on the contract and the civil contractor’s role.

Contract Works Insurance does not automatically cover every party, project delay or contractual obligation. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Professional Indemnity Insurance may be relevant if a civil contractor provides professional advice, design, calculations, reports, specifications, certification, project management or consulting services.

Professional Indemnity Insurance becomes more relevant where a client, principal contractor, regulator or another party could allege that advice, documentation or a professional service was incorrect, incomplete or negligent. A contractor performing construction work may have a different exposure from a contractor that also designs, specifies, surveys, reports or certifies.

A civil contractor may consider this cover if it:

• Provides civil engineering, technical or construction advice
• Prepares calculations, plans, drawings, reports or specifications
• Provides temporary works, drainage, pavement or earthworks design input
• Recommends construction methods, materials, systems or sequencing
• Provides surveying, project management or consulting services
• Works under design-and-construct contracts
• Certifies, inspects or signs off work, where qualified to do so
• Must hold Professional Indemnity Insurance under a civil construction contract

Cover may include:

• Legal defence costs for insured claims
• Claims alleging breach of professional duty
• Claims linked to covered advice, reports, specifications or documentation
• Retroactive cover for eligible past work, where included

Professional Indemnity Insurance is separate from Public Liability Insurance. Public Liability Insurance may respond to certain third-party injury or property damage claims, while Professional Indemnity Insurance may respond to certain claims linked to professional advice or services.

Cover is subject to policy terms, conditions, limits, exclusions, retroactive dates and insurer acceptance.

Personal Accident and Illness Insurance may be considered by sole traders and civil contractors who are not covered by Workers Compensation Insurance. It may provide financial support if you are unable to work due to an insured injury or illness, subject to the policy wording.

Civil contracting can involve manual handling, heavy tools, mobile plant, excavation work, repetitive physical tasks, work around machinery, traffic exposure, uneven ground, outdoor conditions and changing project sites. If you are self-employed and cannot work, your income may be affected quickly.

Cover may include:

• Weekly benefit payments while recovering from an insured injury or illness
• Lump sum benefits for serious injury, where included
• Optional illness cover
• Optional capital benefits
• Optional medical cost benefits, depending on the policy

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Workers Compensation Insurance is generally required when a civil contracting business employs workers. Requirements vary by state and territory, so the right approach depends on where workers are based, where the work is performed, how the workforce is structured, and whether the business uses employees, apprentices, casuals, working directors, labour hire or subcontractors.

All Trades Cover may be able to assist with arranging Workers Compensation Insurance for eligible civil contracting businesses in Western Australia, Tasmania, the Australian Capital Territory and Northern Territory. In New South Wales, Victoria, Queensland and South Australia, workers compensation operates through state-based schemes, so cover generally needs to be arranged through the relevant scheme or authorised provider.

Depending on your location and circumstances, we may be able to help with:

• Workers Compensation setup and placement
• Wage estimates and annual declarations
• Worker classification, including apprentices, casuals and working directors
• Subcontractor and labour hire considerations
• Principal’s Indemnity, where required and available
• Claims lodgement support
• Return-to-work coordination
• Insurer correspondence and paperwork
• Claims history reviews and renewal discussions where past claims have affected premium

Workers Compensation Insurance is commonly relevant for civil contractors with employees, apprentices, plant operators, site crews, working directors, subcontractor arrangements or labour hire exposure.

Requirements and available assistance vary between states and territories. Cover is subject to applicable workers compensation legislation, scheme requirements, policy terms, conditions, limits, exclusions and insurer acceptance.

Business Package Insurance can combine several business covers within one policy structure. The sections selected may cover property, liability, business interruption and other declared business risks.

For civil contractors operating from a workshop, office, depot, yard or storage facility, a Business Package may include:

• Public and Products Liability
• General Property cover for insured tools and portable equipment
• Property cover for offices, workshops, depots, yards or storage areas
• Theft and vandalism cover for insured property
• Business Interruption cover following an insured event
• Money, glass or electronic equipment cover, where relevant
• Machinery breakdown or other optional sections, where available

Business Package Insurance is commonly considered by civil contractors with premises, stock, tools, equipment, spare parts, office contents or administration systems.

Each policy section has its own insured events, limits and exclusions. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Management Liability Insurance is designed to help protect the business and the people who run it from certain claims relating to management decisions, governance issues, employment disputes or regulatory investigations.

As a civil contracting business grows, exposure can extend beyond day-to-day project work. Claims can arise from managing employees and site crews, WHS obligations, subcontractor and labour hire arrangements, payroll issues, tender and contract compliance, plant operations, multi-site projects or decisions made by directors, officers and senior managers.

A policy may include:

• Directors and Officers Liability, either as part of a Management Liability policy or arranged separately
• Employment Practices Liability, such as unfair dismissal, discrimination or harassment claims
• Statutory Liability, where available
• Crime or fidelity cover for internal or external fraud or theft
• Tax audit and regulatory investigation costs, where covered

This cover may be considered by civil contractors managing employees, labour hire, subcontractor crews, WHS obligations, plant operations, multiple project sites and detailed contract compliance requirements.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Tax Audit Insurance may cover certain professional fees if an insured civil contracting business is audited, reviewed or investigated by the Australian Taxation Office or a state revenue office.

Tax Audit Insurance may be relevant for civil contractors that report business income, GST, payroll, superannuation, fuel expenses, vehicle costs, plant purchases, depreciation, finance expenses or subcontractor payments.

Cover may include:

• Accounting or tax adviser fees for an insured audit or review
• ATO reviews involving income tax, BAS or GST, where covered
• Payroll tax or superannuation reviews, where covered
• State revenue office reviews, where included
• Professional costs to review records and prepare a response, where included

Tax Audit Insurance does not usually cover tax liabilities, amended assessments, fines, penalties or interest payable to a revenue authority.

Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.

Cyber Insurance may cover certain financial, legal and operational costs arising from an insured cyber incident. Relevant incidents may include phishing, ransomware, data breaches, invoice scams or business email compromise.

Cyber Insurance may be relevant for civil contractors using cloud-based project systems, tender platforms, remote access, GPS or fleet systems, digital payroll, online invoicing, job management software or databases containing client, employee and subcontractor information.

Cover may include:

• Cyber incident response costs
• Data restoration and system recovery
• Business Interruption losses following an insured cyber event
• Legal, forensic and notification costs for an eligible data breach
• Ransomware and phishing response support
• Invoice redirection or social engineering losses, where available
• Third-party liability arising from covered exposure of client, contractor or employee data

Cyber policies may require the business to maintain specified security controls, such as multi-factor authentication, backups and software updates.

Cover is subject to policy terms, conditions, limits, sub-limits, exclusions and insurer acceptance.

Business Interruption Insurance may help a civil contracting business manage certain lost income and additional operating costs following an insured event that disrupts normal trading. It is commonly arranged as part of Business Package Insurance or alongside insured property cover.

For civil contractors, an interruption may follow insured damage to a workshop, depot, office, stock, machinery or other insured business property. Cover generally depends on the underlying cause of the interruption being insured under the applicable property or machinery section.

Cover may include:

• Loss of insured gross profit, revenue or income during the indemnity period
• Additional operating costs reasonably incurred to continue or restore the business, where covered
• Fixed business expenses that continue during an insured interruption, subject to the policy basis
• Temporary premises, equipment hire or relocation costs, where included
• Claim preparation costs, where included
• Specified supplier, customer, public utility or access interruption extensions, where available

For larger civil construction and infrastructure projects, Delay in Start-Up Insurance, also known as Advanced Loss of Profits Insurance, may also be relevant. DSU is a project-specific form of business interruption cover that is generally arranged in connection with Contract Works Insurance or other construction insurance.

Where included, DSU may respond if insured physical loss or damage during construction delays the planned completion or commencement of a project and causes an insured financial loss. Depending on the policy, this may include loss of anticipated revenue or gross profit, continuing fixed costs or specified additional costs arising from the insured delay.

Business Interruption Insurance and DSU Insurance do not generally respond simply because a project is delayed, work slows down, plant becomes unavailable or a contract is lost. The interruption or delay generally needs to result from an insured event and satisfy the applicable policy requirements.

Cover is subject to policy terms, conditions, waiting periods, indemnity periods, limits, sub-limits, exclusions and insurer acceptance.

Corporate Travel Insurance may cover certain risks arising when directors, employees or other insured people travel for business. It can be relevant for civil contractors whose people travel between cities, states, regional areas, remote project sites or overseas for tenders, projects, meetings, training or inspections.

The policy may apply to individual trips or be arranged as an annual policy covering eligible business travel during the policy period. Some policies may also include limited associated leisure travel, where declared and accepted.

Cover may include:

• Overseas medical and emergency assistance expenses, where covered
• Trip cancellation, alteration or additional travel expenses following an insured event
• Lost, stolen or damaged baggage and personal effects, subject to item limits
• Business equipment carried during an insured trip, where included
• Personal accident benefits for specified events, where included
• Rental vehicle excess, where covered
• Emergency evacuation or repatriation costs, where included

Corporate Travel Insurance does not cover every travel disruption or medical condition. Territorial limits, trip-duration limits, pre-existing medical condition rules, excluded destinations, activities and other conditions may apply.

Cover is subject to policy terms, conditions, limits, sub-limits, exclusions and insurer acceptance.

Marine Transit Insurance may cover insured goods, materials, tools, equipment or other property while being transported between locations. Despite the name, cover may apply to eligible transit by road, rail, air or sea, depending on the policy.

Civil contractors may consider Marine Transit Insurance when moving pipes, precast components, steelwork, barriers, construction materials, tools, spare parts or other project property between suppliers, depots and work sites.

Cover may include:

• Loss of or accidental damage to insured property during transit
• Transit by the civil contractor’s own vehicles or third-party carriers, where included
• Loading and unloading risks, where covered
• Temporary storage incidental to an insured transit, where included
• Single-transit cover or annual transit arrangements
• Domestic or international transit, where declared and accepted

Cover for theft from unattended vehicles, used machinery, high-value equipment, fragile items, consequential loss, delay or specialised cargo may be restricted or require specific extensions.

Marine Transit Insurance is separate from Commercial Vehicle Insurance and may also differ from transit extensions contained in Contractor Plant and Machinery Insurance or Contract Works Insurance.

Cover is subject to policy terms, conditions, limits, sub-limits, exclusions and insurer acceptance.

Contract-Specific Endorsements and Extensions are not a standalone insurance policy. They are changes, extensions or evidence requirements that may be requested under a civil construction contract, tender, prequalification process, site-access arrangement or principal contractor insurance schedule.

Civil construction contracts can require wording that differs from a standard policy. Whether that wording can be provided depends on the existing cover, insurer approval, the contractor’s declared activities and the terms of the contract.

Common civil contract requirements may include:

• Principal’s Indemnity, where required and accepted by the insurer
• Cross Liability wording
• Waiver of Subrogation, where required and available
• Contractual Liability extensions, where available
• Project-specific or site-specific Certificates of Currency
• Interested party or financier noting, where appropriate and available
• Project-specific policy limits or excess requirements
• Joint venture, principal contractor, council, government agency or other entity wording, where accepted
• Civil-specific extensions or restrictions relating to excavation, underground services, vibration, roadwork, rail corridors, lifting or other declared activities

All Trades Cover may be able to review a civil construction insurance schedule, identify wording that differs from the current policy and approach the insurer about available endorsements or documentation. Insurer approval is required before amended wording or Certificates of Currency can be issued.

An insurance policy or Certificate of Currency should not be assumed to satisfy every civil contract, tender, prequalification, licence or site-access requirement. Contractors should check the final requirements against the relevant contract and obtain legal or other professional advice where needed.

Cover and endorsements are subject to policy terms, conditions, limits, exclusions and insurer acceptance.