Insurance Advice for Specialist Contractors & Established Construction Companies
Construction insurance is one of the most technically demanding classes of business in the Australian market. Contract obligations vary from project to project, liability exposures overlap between principal contractors and specialist subcontractors, and the consequences of an inadequately structured program can be severe – both financially and contractually.
Clear Insurance works with specialist contractors and established construction companies who need more than a standard policy. Our clients operate in technically complex environments: structural steel, facade systems, design and construct contracts, and commercial fitout projects where insurance obligations are written into every subcontract agreement.
Who We Work With
With over 30 years of experience in complex insurance placement, our team understands the specific risks, contract requirements, and insurer appetite that applies to your sector. We provide advice you can act on – not generic cover that leaves gaps when it matters most.
Not every construction business has the same insurance needs, and not every insurance adviser has the experience to navigate the difference. Our client base spans the full spectrum of specialist and established construction activity.
The businesses we work with typically share a few characteristics: they have professional operational teams, they manage multiple concurrent projects, and they operate under subcontract agreements that impose specific insurance obligations. They need an adviser who can read a subcontract insurance schedule, identify what it actually requires, and make sure the policy responds correctly.
Our ideal clients include:
If your business sits outside these parameters – for example, if you are a sole trader, a small trade business, or a large national group with a dedicated corporate insurance team – we are probably not the right fit, and we will tell you that upfront.
What Makes Our Clients Different
The construction businesses we work best with are distinguished by operational maturity and technical depth. These are not businesses looking for the cheapest policy – they are businesses that understand the value of getting insurance right, because they have seen what happens when it goes wrong.
This profile matters because our service model is built around it. The time we invest in understanding your contracts, your project pipeline, and your subcontractor network pays off most for businesses that are actively managing risk – not businesses that are simply ticking a compliance box.
Insurance Solutions for Construction Businesses
Construction businesses face a layered set of insurance obligations – some imposed by head contract, some by client requirement, and some driven by the nature of the work itself. Getting the structure right across all of these is where specialist advice makes the biggest difference.
The following insurance lines form the core of most construction programs. The right combination, and the right structure within each policy, depends on your specific operations, contract position, and project types.
We understand the insurance obligations and risk exposures facing specialist contractors and established construction companies. Our advice covers:
Understanding Latent Defects Insurance (LDI) for Construction Projects
Latent Defects Insurance is a specialist product that sits outside the standard construction insurance program, and most construction businesses will encounter it for the first time when a developer or financier requests it on a specific project. Understanding what it covers, what it costs, and what it requires from the builder is important before committing to a project that includes an LDI obligation.
Latent Defects Insurance (LDI) provides 10-year coverage for structural, waterproofing, mechanical, electrical, fire safety, and façade defects in new construction. LDI requires independent Technical Inspection Service (TIS) oversight throughout design and construction, providing quality assurance and insurance-backed protection.
How LDI Works
It’s independent oversight. All LDI policies require engagement of an approved Technical Inspection Service that reviews design documentation and monitors construction quality throughout the project.
Coverage Structure
LDI Premium and Costs
Who LDI May Suit
Potential Benefits – Developers and builders using LDI have reported:
Important Limitations – Before proceeding with LDI, understand:
Important Information
This information about Latent Defects Insurance is general in nature and does not take into account your specific objectives, financial situation, or needs. LDI coverage, terms, conditions, and premium rates vary by insurer and project. Before making any decision about insurance, review the relevant Product Disclosure Statement and obtain personalised advice appropriate to your circumstances. Clear Insurance has experience arranging LDI for eligible projects and can provide guidance on whether your project and business profile is likely to meet insurer requirements. Given the specialist nature of this cover, early engagement – ideally during the tender or pre-contract phase – gives the best outcome for all parties.
Additional Insurance Solutions and Protection
Common Insurance Challenges
Construction businesses encounter insurance challenges that are specific to their operating environment. Many of these challenges only surface at the worst possible time – when a claim is made, or when a head contractor reviews your certificate of currency and identifies a gap. The following challenges come up regularly for our clients, and they inform how we structure every program we manage.
For Specialist Contractors:
These challenges are not hypothetical. They reflect real situations our clients have faced, and they are the reason a standard off-the-shelf construction policy often falls short for businesses operating at the specialist or established company level.
For Construction Companies:
The common thread across all of these challenges is complexity. Construction insurance is not difficult because the products are obscure – it is difficult because the interactions between policies, contracts, and operational realities require careful management. That is what we are here for.
Our Approach
Every construction business we work with starts with a no-obligation review. We do not ask you to commit to anything before we have demonstrated that we understand your business and can offer genuinely better advice than you are currently receiving. The process below is how we get there.
Understanding Your Operations
We take time to understand your technical specialty, project types, contract structures, operational scale, and commercial objectives.
Comprehensive Risk and Insurance Review
Our team conducts a thorough no-obligation assessment of your current insurance program, identifying any gaps or areas where cover may not align with your subcontract obligations, operational scale, or project activities. You’ll receive a detailed gap analysis report to help you make informed decisions about your insurance arrangements.
Tailored Advice
We provide clear recommendations on appropriate insurance options for your business, explaining complex policy terms and subcontract insurance clauses in straightforward language. Our advice considers your operational scale, project portfolio, and commercial requirements.
Professional Market Access
Through our Steadfast network membership and relationships with Australian insurers experienced in commercial construction risks, we help you access appropriate insurance solutions suited to your operational scale and project requirements. When standard insurers decline or quote excessive premiums, we leverage specialist insurer relationships to secure appropriate cover for your professional operations.
Ongoing Support
As your business evolves, whether through operational expansion, new project types, additional contracts, or business acquisitions, we provide continued advice and assistance with policy adjustments, annual reviews, and claims support. As you consider new tenders, significant contract opportunities, or major asset acquisitions, we can provide guidance on the insurance implications before you commit.
Our goal is to be a long-term adviser, not a once-a-year renewal processor. The construction businesses we work with best are those that bring us into the conversation early – whether that is a new contract opportunity, a change in operations, or a claim situation. The more we know about what you are doing, the better we can protect it.
Frequently Asked Questions
What types of construction businesses do you advise?
We work with established specialist contractors (structural, façade, fitout, remedial) and construction companies with professional operational teams and multiple concurrent projects. Our typical clients have annual revenue between $10m and $75m, with dedicated project managers, estimators, and site supervisors managing 5-15+ projects simultaneously.
Do you work with sole traders or small trade businesses?
No, our service model is designed for established construction businesses with operational teams and multiple concurrent projects. We require clients to have professional business structures, dedicated administrative support, and the capacity to manage multiple projects simultaneously.
Do you work with subcontractors?
Yes, many of our specialist contractor clients work predominantly as subcontractors on major projects managed by head contractors. We understand the insurance obligations in subcontract agreements and ensure your cover meets head contractor requirements across all your concurrent projects.
Can you help with contract reviews?
Absolutely, reviewing contracts (both head contracts and subcontracts) for insurance obligations is a core part of our service. We identify problematic clauses and unreasonable risk transfer before you’re contractually committed. We review multiple contracts throughout the year as you tender for and secure new projects.
What if we work as both principal and subcontractor?
Many of our clients have this dual role, managing some complete projects as principal contractor while also providing specialist services on larger projects managed by others. We structure insurance programs that provide appropriate cover for both contract positions.
Do you arrange project-specific insurance?
Yes. For significant projects requiring dedicated policies, owner-controlled insurance programs, or specific client insurance requirements, we have the expertise and market relationships to arrange appropriate cover.
We’re growing and taking on larger/more complex projects – can you help?
We regularly advise construction businesses navigating growth and capability expansion. We’ll ensure your insurance program evolves with your business while maintaining competitive pricing and appropriate cover for your expanding operations.
What size projects do your clients typically manage?
Our clients typically work on projects ranging from $1m to $20m+ in value, managing multiple concurrent projects at any time. This includes both projects where they’re the principal contractor and major projects where they’re engaged as a specialist subcontractor.
Do I need my own Contract Works policy if the head contractor has one?
Not always, but you need to check carefully before relying on a principal-arranged policy. Head contractor policies vary significantly in the extent to which they cover specialist subcontractors, and some policies impose obligations or excesses on subcontractors that are not reflected in the subcontract agreement. Before you accept a contract on the basis that insurance is provided, we recommend having the policy reviewed to confirm your work, your materials, and your liability exposure are adequately covered.
What insurance does my subcontract require me to hold?
Most commercial subcontracts require, at minimum, a combination of Contract Works (or equivalent), Public and Products Liability, and Professional Indemnity if you have any design responsibility. Required liability limits vary by contract – head contractors set their own minimums, and these can differ significantly from project to project. Some contracts also require Statutory Liability, Management Liability, or specific extensions such as non-negligent cover or principal indemnity. We review subcontract insurance schedules as part of our service and advise on whether your current program meets the specific requirements of each contract.
How much Public Liability cover does a construction business need?
Head contracts commonly specify minimum Public Liability limits, and the figure required varies from contract to contract and client to client. The right level of cover for your business depends on your project values, the types of work you undertake, and your specific exposure to third-party property and bodily injury claims. Rather than applying a one-size-fits-all figure, we assess the appropriate limit as part of every program review, taking into account both your contractual obligations and your actual risk profile.
What happens if a defect is discovered after practical completion?
Post-completion defect liability is one of the most common and costly exposures for construction businesses. Contract Works insurance ends at practical completion. Public liability may cover injury or third-party property damage arising from a defect, However, cover for the cost of rectifying the defect itself is limited under most policies. Professional Indemnity may respond if the defect arises from a design or specification error. Understanding which policy responds to which type of defect claim – and ensuring there are no gaps – is critical. We map this exposure as part of our program review.
Does my insurance cover work done by my subcontractors?
Your Public Liability policy typically covers your vicarious liability for the acts of subcontractors working under your direction, but this varies by policy wording. Some policies impose conditions or exclusions related to uninsured subcontractors. It is important to understand what your policy says about subcontractor liability and to ensure your subcontractors hold their own adequate insurance. We advise on subcontractor insurance management as part of our construction program service.
What is the difference between Contract Works and Professional Indemnity for a design and construct contractor?
Contract Works insurance covers physical loss or damage to the project under construction. Professional Indemnity covers financial loss arising from errors in design, specification, or professional advice. For design and construct contractors, both are essential – they cover different parts of the risk. A structural failure during construction may be a Contract Works claim. A defect that arises because the design was incorrect may be a Professional Indemnity claim. The boundary between the two is not always clear, which is why both policies need to be structured carefully and reviewed together.
Important information: This page provides general information only. Clear Insurance provides advice on insurance products and their suitability for your circumstances. We do not provide risk management consulting services. We recommend discussing your specific circumstances with our team to receive tailored advice appropriate to your construction business needs. Before entering into insurance, you have a duty to disclose anything that may affect an insurer’s decision to insure you. Learn more. View our Financial Services Guide for full details about our services and remuneration. Clear Insurance Pty Ltd | ABN 41 601 916 689 | AFSL No. 548953
Last updated: 14 May 2026
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