How insurance looks for civil contractors
Civil contractors build and maintain infrastructure: roads, stormwater and sewer networks, culverts, bridges, retaining structures, pipelines and bulk earthworks. Contracts are often awarded through public tender and may be based on forms such as the GCC, NEC or FIDIC, each of which sets its own insurance and security requirements.
Work is spread across sites and often runs for many months. That makes the policy period, the sums insured and the evidence of cover that must be given to the employer all matter more than they do on a short building job.
Exposures to assess
These scenarios show where the insurance conversation usually becomes specific for this trade. They are exposures to assess with an insurer, not assurances that any policy will respond.
Works in or near a watercourse
A culvert or bridge foundation is exposed to river flow before it is complete. Ask how the policy treats flood, storm and water damage to partly finished works, and whether any conditions apply.
Excavation beside existing services
A trench is dug across an area with buried pipes and cables. Assess how damage to existing services is treated for liability purposes, and what excess applies.
Temporary works that you design
A deep excavation is supported by shoring you designed. If the temporary works fail, which of your policies would be considered: contract works, liability, professional indemnity, or more than one?
A long defects liability period
The contract keeps you responsible for defects for a period after practical completion. Check how the policy deals with the maintenance period and how long any extension runs.
Security and retention requirements
The employer asks for a performance guarantee and holds retention. Understand what security is needed, how long it must be maintained and how it differs from insurance.
Covers to discuss
| Cover | Why it may matter |
|---|---|
| Contractors All Risk | Insures the works under construction and is usually the first insurance the contract specifies. |
| Public liability | Addresses third-party claims from open excavations, traffic interference and damage to adjoining property or services. |
| Plant All Risk | Plant is typically the largest asset base, and contract works policies do not automatically include it. |
| Performance guarantees | Public employers frequently require security for performance, which is a guarantee rather than insurance. |
| Design and construct | Relevant where the contract gives the contractor design responsibility for part of the works. |
Information that helps us prepare a quotation
- The contract form and the insurance clauses and contract data.
- The scope of work and whether it includes design or temporary works design.
- The contract value, programme and defects liability period.
- Details of existing services and structures near the works.
- Your plant schedule and how plant moves between sites.
- Your CIDB grading and a summary of similar projects.
Frequently asked questions
Which contract insurances do civil employers usually ask for?
It varies by contract form and employer. Commonly discussed covers are contract works, public liability, and sometimes professional indemnity or plant. The insurance clauses and contract data state the requirements, so we start there.
Does my CIDB grading affect insurance?
Your grading mainly relates to the tenders you can bid for, not directly to insurance. Insurers may, however, ask about your experience and work in hand. See our CIDB grading guide.
Related guides
- Insurance after winning a tender: what to prepareWhat to do about insurance after a contract award: reading the contract’s insurance clauses, listing required covers and evidence, timing, and what to send your broker.
- NEC, FIDIC and GCC insurance considerationsAn overview of insurance considerations under NEC, FIDIC and GCC contracts, why requirements are not identical across forms, and how to check your own contract.
- What is the CIDB? Grading, grades and grading tableWhat the CIDB is, what CIDB grades 1 to 9 mean, how a grading designation such as 6CE is written, and the CIDB grading table, with sources checked against the CIDB website.
Related industries
- Earthmoving contractorsPlant, transit, underground services and ground stability for bulk earthworks and site preparation.
- Drainage and sewer contractorsExcavation near existing underground services, trench collapse, flooding and pollution in drainage and sewer work.
- Road construction contractorsWorks near traffic, plant operations, asphalt and weather exposures on roads and highways.