Insurance period and premium

The Construction Risks – Material Damage and Liability Annual Insurance Policy has been renewed for the period 1 November 2022 to 31 October 2023. The policy’s anniversary date will now fall due on 31 October each year, enabling more accurate project expenditure forecasting after the State Budget.

Renewal (deposit) premiums will be invoiced in two separate tranches:

  • 1/7/2022 to 31/10/2022 – for the previously advised 4 month extension term; and
  • 1/11/2022 to 31/10/2023 – based on estimated project values for contracts awarded during these periods.

Policy wording - key changes

A number of improvements and clarifications of your insurance cover have been made for this renewal. The key changes are highlighted below.

Amendments to Section 1 (Material Damage) and Section 2 (Liability)

  • The policy wording has been redrafted for simplification and greater clarity, for example a single section for all definitions.
  • The definition of Insured Operations has been broadened to capture incidental construction activities.
  • The ‘Cessation of Work’ exclusion has been removed and replaced by a more lenient policy condition requiring notification of cessation of works or abandonment of a Contract.
  • The definition of Insured has been revised to provide greater clarity on the extent of cover provided to Insured parties.
  • Excluded Contracts
    • Directional Drilling amended to automatically cover Contracts with a Project Value up to $10m or up to 500 metres in continuous length, subject to an industry standard exclusion under Section 1 (addressing inherent trade risks).
    • The policy includes an additional excluded category:
      - Massive timber or substantial laminated timber structures of >$100m; or 4 or more storeys in height.
    • Please note that cover for Excluded Contracts can be arranged through VMIA on referral, or in certain instances through the contractor’s insurance (e.g. asbestos / contamination liability risks).

Amendments to Section 1 (Material Damage) only

  • Piling – an industry standard exclusion now applies (addressing inherent trade risks).

Amendments to Section 2 (Liability) only

  • Clarification that the policy limit applies on a combined basis across all insureds under all VMIA construction annual policies for each Occurrence.
  • Furthermore, this combined limit applies to Completed Operations and Products Liability for each Occurrence and in the aggregate during the Period of Insurance for State insured entities only.

More Information

Contact Shane Hager on 03 9270 6971, Lacie Guo on 03 9270 6856 or email us at

Please read the full 1 November 2022 - 31 October 2023 policy terms and conditions [PDF, 876KB]