Specialist Cover for Builders, Contractors & Developers
Construction Insurance NZ
A construction programme has to move with the project — through excavation, structure, fit-out and handover. We map cover to the contract obligations, the site risks and the project timeline, then place it accordingly.
Who this is for
Residential and commercial builders, main contractors, developers, civil and infrastructure contractors, specialist trades and subcontractors, project managers and quantity surveyors. Ranges from a single owner-builder project to portfolios of concurrent commercial builds.
Operational risks we understand
Site theft and vandalism, weather damage, fire during construction, subcontractor workmanship, faulty design and materials, defects during the maintenance period, earthquake and natural disaster in the works, principal-vs-contractor liability confusion, unpaid variations, insolvency along the contract chain, and Health & Safety at Work Act obligations that follow through to directors personally.
Insurance responses that may be relevant
The right combination depends on the contract, the project value, whether the works are annual or project-specific, and who bears risk under the contract. The list below is the shortlist we work through in a structured review.
How we review and structure the risk
We start with the contract wording, the schedule of works, and any principal-arranged cover the builder is already sitting under. We look at what is being replaced, what is being extended, and where sub-limits or exclusions create gaps. We then structure a programme — often blending an annual contract works policy with project-specific placements for larger jobs — and document the reasoning so it is clear at renewal and at a claim.
Cover Types
Who Is This For?
Why Exclusive Insurance Services?
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What Insurers Typically Need
Information an insurer may require
Underwriters generally ask for the following when quoting or renewing this class of risk. Being ready with accurate information usually improves outcomes on price and wording.
Nature of works: residential, commercial, civil or specialty; new build vs. alteration
Contract value(s), project duration and maintenance/defects period
Copy of the head contract and any principal-required insurance schedule
Existing property in or adjacent to the works
Site details: excavation depth, retaining walls, water proximity, occupied premises
Subcontractor arrangements and how liability is passed between parties
3–5 years claims history with paid, outstanding and declined values
H&S documentation, SafePlus/ISO accreditations, incident register
When Something Happens
Claims considerations
We help manage the claims process from notification through to settlement, coordinating with you, the insurer and other parties involved and advocating for your interests throughout. Things that commonly affect a claim in this area:
Notify as early as reasonably possible — evidence on a construction site is quickly disturbed.
Photograph the site, secure damaged materials, and preserve the daily site diary and correspondence.
Where subcontractors are involved, the head-contract wording drives who tenders the claim and against which policy.
Serious injuries carry H&S obligations independent of the insurance claim; we assist with the interaction.
Delay claims (advance loss of profits) turn on evidence of the programme, critical path and financial impact — start capturing this at day one.
Defects that surface after handover are handled under the maintenance period cover or the professional indemnity policy, depending on cause.
Frequently Asked Questions
What is contract works insurance?
Contract works (also called construction all risks) covers physical loss or damage to the works during construction — the structure, materials on site and often temporary works. Cover scope, sub-limits and exclusions vary between insurers.
Do I need annual or project-specific cover?
Annual policies suit builders with a steady pipeline of similar-sized jobs. Project-specific placements suit large one-off projects, joint ventures, or works with unusual site conditions. Many portfolios use a combination.
Do subcontractors need their own cover?
Typically yes. Even where a head contract has a principal-arranged programme, subcontractors are commonly required to hold their own public liability, statutory liability and (for design work) professional indemnity. Head contracts frequently require evidence before site access.
What is a surety / performance bond?
A bond that guarantees a contractor will complete a project on the contract terms. If the contractor defaults, the bond pays the project owner. Bonds are placed through specialist surety markets and involve underwriting of the contractor as well as the project.
Does construction insurance cover earthquake?
Contract works policies usually include natural-disaster cover for the works, but sub-limits and excesses vary significantly, particularly in higher seismic zones. This is a specific area we review at placement.
Who arranges cover — the principal or the contractor?
It depends on the contract. Some projects use principal-arranged insurance covering all parties; others require the main contractor to place cover. Reading the insurance clause of the contract is the first step.
How long does maintenance / defects cover run?
The maintenance period is typically 12 months from practical completion, but the contract determines the actual length. During this period the contractor is responsible for making good defects that emerge.
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About this page
Reviewed by Adi Sehgal
Verified adviserDirector & Principal Adviser
This page is general information about the class of cover. Actual cover, terms, premiums, limits, exclusions and eligibility vary by insurer, policy wording, underwriting decision and individual client circumstances. Nothing on this page constitutes personalised financial advice.