What is Contract Works Insurance for Groundworkers?

Introduction: why groundworks need their own kind of protection

Groundworkers sit at the start of a build, when the site is most exposed. You may be excavating, laying drainage, forming foundations, installing attenuation tanks, or preparing slabs—often before the building is watertight, before permanent security is in place, and while multiple trades are moving around the same area.

That combination (open excavations, plant on site, materials stored outdoors, and changing site conditions) makes “something goes wrong” a realistic scenario rather than a rare one.

Contract Works Insurance is designed for exactly this stage of a project: it helps cover accidental loss or damage to the works while they’re being built, before practical completion and handover.

What is Contract Works Insurance?

Contract Works Insurance is a policy section that covers the contract works—the value of the work in progress—if it is accidentally lost or damaged during the contract period.

You’ll also hear it called:

• Contractors’ All Risks (CAR)
• Contract Works cover
• Works in progress insurance

For a groundwork contractor, “the works” can include excavations and earthworks, drainage runs, manholes, ducting, foundations, concrete pours, kerbs, paving, and other enabling works that form part of your contract.

The key point is timing: this cover is about the period before handover. Once the job is completed and handed over, different insurance solutions may apply.

What does it typically cover for groundworkers?

Policies vary, but Contract Works Insurance is usually written on an “all risks” basis—meaning it covers sudden and unforeseen physical loss or damage, unless something is specifically excluded.

Common insured events include:

• Fire
• Flood and storm damage
• Theft of materials (subject to security requirements)
• Vandalism and malicious damage
• Accidental damage during construction
• Impact damage (for example, plant striking installed works)

Examples grounded in real groundwork scenarios

• A flash flood fills excavations and washes out prepared formation, damaging installed ducting.
• Fresh concrete is damaged by unexpected frost overnight, requiring breakout and re-pour.
• Materials are stolen from site (e.g., ducting, copper earthing, or drainage components) before installation.
• A third party damages your installed drainage while moving plant across the site.

Contract Works cover is about the cost to put the work back to the point it was at—not about your legal liability to others (that’s usually Public Liability/Employers’ Liability).

What is the “sum insured” and how do you set it?

The sum insured for Contract Works is usually the maximum value of the contract works at risk at any one time.

For groundworkers, this is often misunderstood. It’s not always the full contract value; it’s the peak value of work completed plus materials on site that you are responsible for.

When setting the sum insured, consider:

• The value of work in progress at the busiest point of the job
• The value of materials stored on site (or in secure storage) that you own or are responsible for
• Whether you are responsible for free-issue materials supplied by the principal contractor
• Whether you are responsible for temporary works (see below)

If the sum insured is too low, you risk underinsurance, which can reduce claim payments.

Contract Works vs Public Liability: what’s the difference?

This is one of the most important distinctions for groundworkers.

• Contract Works Insurance: covers damage to the works you are building (your own project) during the contract period.
• Public Liability Insurance: covers your legal liability if you injure someone or damage someone else’s property.

Example:

• If you accidentally damage a client’s existing wall while excavating, that’s likely Public Liability.
• If your newly installed drainage run collapses due to an insured event and needs redoing, that’s Contract Works.

In practice, a single incident can trigger both sections (for example, a collapse that damages neighbouring property and your works).

What about plant, tools, and hired-in equipment?

Contract Works Insurance is not the same as Plant and Tools cover.

Groundworkers often need separate sections (or separate policies) for:

• Contractors’ Plant (owned plant such as excavators, dumpers, rollers)
• Hired-in Plant (equipment you hire from a plant hire firm)
• Tools (hand tools, small power tools)

If a hired excavator is stolen, the hire company may hold you responsible under the hire agreement. Hired-in Plant cover is designed to protect you against that contractual responsibility.

Does Contract Works cover temporary works?

Temporary works are things that are not part of the finished structure but are essential to build it safely.

For groundworks, temporary works can include:

• Temporary shoring and propping
• Trench boxes and support systems
• Temporary access roads and haul routes
• Dewatering systems

Some policies include temporary works automatically up to a limit; others require you to declare them. This matters because temporary works can be expensive and can fail due to ground conditions.

Key exclusions and limitations to watch for

“Contractors’ All Risks” is not “covers absolutely everything.” Groundworkers should pay close attention to exclusions that commonly affect excavation and drainage work.

Common exclusions (or restricted areas)

• Defective workmanship / faulty design: often excluded, though resulting damage may be covered.
• Wear and tear / gradual deterioration: not an insured event.
• Known defects: issues you were aware of before the loss.
• Consequential loss: delays, penalties, and loss of profit are usually excluded unless you buy Delay in Start Up (DSU) or similar (more common on large projects).
• Theft without forcible and violent entry: many policies require specific security standards.

The “resulting damage” point (important)

A common approach is:

• The cost to fix the poor workmanship itself may be excluded.
• But if that poor workmanship causes sudden damage to other parts of the works, that resulting damage may be covered.

The exact wording matters, so it’s worth checking before you assume you’re protected.

Groundworks-specific risk areas insurers care about

Insurers often ask extra questions for groundworks because losses can be severe.

Excavations and collapse

Deep excavations, unstable ground, and adjacent structures increase the chance of collapse and third-party damage. You may be asked about:

• Maximum depth of excavation
• Ground investigation reports
• Method statements and temporary works design
• Proximity to existing buildings, roads, or services

Underground services

Striking a service can cause major losses and delays. Contract Works may cover damage to your works, but liability to others is usually under Public Liability.

Expect questions about:

• Utility searches and CAT & Genny use
• Permit-to-dig procedures
• Competence and supervision

Flood risk and dewatering

Open excavations and drainage installations are vulnerable to heavy rain.

Insurers may want to know:

• Site flood history
• Water management plan
• Pumping/dewatering arrangements
• Storage of materials above ground level

Who needs Contract Works Insurance on a groundwork job?

Contract Works Insurance is commonly needed by:

• Groundwork subcontractors
• Principal contractors who self-perform groundworks
• Developers who take responsibility for works in progress

Whether you need it depends on your contract.

You may be responsible if:

• Your subcontract says you’re responsible for the works until handover
• You’re working under JCT/NEC or bespoke terms that place risk on you
• The principal contractor requires you to carry Contract Works cover

Some principal contractors arrange a project-wide CAR policy and include subcontractors. Even then, you should confirm:

• Are you noted/insured under the policy?
• What are the limits and excesses?
• Are your activities included (depth, location, type of work)?
• Does it cover your materials off-site or in transit?

Single project cover vs annual (open) cover

Groundworkers can arrange Contract Works in two main ways:

1) Single project policy

Best when:

• You have one large job
• The client requires a dedicated policy
• The risk profile is unusual (deep excavations, high value)

2) Annual “open” Contract Works

Best when:

• You run multiple jobs each year
• Each job is within a typical range of value and activity
• You want consistent cover without arranging a new policy each time

Annual cover usually has:

• A maximum contract value limit
• A maximum contract period
• Conditions about security, storage, and site protections

How claims typically work (plain-English overview)

If damage occurs, insurers generally want:

• What happened and when
• Photos and site records
• The value of the works affected
• Repair/reinstatement quotes
• Evidence of security measures (for theft claims)

You’ll usually have an excess (the amount you pay towards the claim). For flood and subsidence/collapse-related perils, the excess can be higher.

Good record-keeping helps: daily site diaries, weather logs, delivery notes, and progress valuations can all support a smoother claim.

What limits and add-ons should groundworkers consider?

Depending on your work mix, you may want to explore:

• Higher theft limits for materials stored on site
• Off-site storage cover (if you store materials in a yard)
• Transit cover (materials moving to site)
• Temporary works limits that reflect your actual exposure
• Hired-in plant cover (if you regularly hire excavators/rollers)
• Non-negligent liability (often required by contract, covers certain accidental damage to surrounding property that isn’t due to negligence—wording varies)

A broker can help align these with your contracts and typical job profile.

Quick checklist: questions to ask before you buy

• What is my maximum contract works value at risk at one time?
• Do I need cover for temporary works, off-site storage, or transit?
• What are the security conditions for theft?
• Are excavations/collapse/subsidence covered, and what excess applies?
• Does the policy include work on or near existing structures?
• Are subcontractors covered (if I use them), and are labour-only subcontractors treated differently?
• Does the wording fit my contract requirements (JCT/NEC/bespoke)?

Common misconceptions (and quick fixes)

• “My Public Liability covers the job.” It covers liability to others, not damage to your own works.
• “The main contractor has insurance so I’m fine.” Maybe—but confirm you’re included and that your activities are not excluded.
• “All risks means no exclusions.” All risks still has exclusions and conditions.
• “I’ll just insure the full contract value.” You may be overpaying; the right figure is usually the maximum value at risk at any one time.

Final thoughts: protect the work you’re building

Groundworks are high-impact, high-variation, and weather-exposed. Contract Works Insurance is one of the most practical ways to protect your cash flow if the works are damaged before handover—especially when contracts make you responsible for putting things right.

If you want, share the typical contract value range you work on (and whether you do deep excavations or work near existing buildings). I can help you shape a simple “what we need to insure” brief you can send to your broker.

CTA (tailor for Insure24)

If you’re a UK groundwork contractor and you need Contract Works Insurance that matches your contracts and site risks, Insure24 can help. Call 0330 127 2333 or request a quote online, and we’ll talk you through limits, excesses, and any contract requirements before you commit.