Construction Risks

Construction Risks – Material Damage and Liability Insurance provides protection for physical loss or damage to construction projects and legal liability arising from their execution. This includes new erections, construction, alterations, testing and commissioning as well as protection during any defects liability period. This cover is required because VMIA’s Property and Combined Liability (Public and Products Liability) policies exclude construction activities over $500,000 in value.

What’s covered?

Below is a brief overview of policy features. Please refer to the policy wording for full details of the cover and exclusions.

Section 1 - Material Damage:
- physical loss, destruction or damage to Insured Property – work in progress, construction materials, and specialised construction plant and equipment (when agreed) – occurring during the construction period or defects liability period.
- ‘Insured Property’ includes:
  - permanent or temporary structures, materials and supplies
  - temporary buildings, camp buildings, project buildings and all contents
  - formwork, false-work, scaffolding, access platforms, hoardings and mouldings
  - consumables, drawings, documents and electronic data.
- Cover extends to anywhere within Australia whilst at the worksite, during pre-fabrication, in storage and during inland transit.
- Additional costs such as removal of debris, expediting expenses, emergency services expenses, temporary protection of property are also insured.

Section 2 – Liability:
- Covers damages and compensation for third party personal injury, property damage and advertising injury sustained during the construction period or defects liability period.
- Cover extends to State insured entities (excluding municipal councils and associations) for related liabilities arising from Completed Operations and Products.
- Legal defence costs and expenses are also insured.

Who’s covered?

Your organisation as the project principal
Project and construction managers
Contractors and subcontractors
Any other parties involved in operations of works by agreement.

Policy documents

1 November 2022 - 31 October 2023 Construction Risks - Material Damage and Liability Annual Insurance Policy [PDF, 876KB]