Construction Insurance Advice & Risk Transfer Solutions

Insurance Advice for Specialist Contractors & Established Construction Companies

Construction insurance is technically demanding. Contract obligations shift from project to project, and liability exposures overlap between principal contractors and specialist subcontractors.

When a program is not structured properly, the consequences can be severe. You face both financial and contractual exposure.

Clear Insurance works with specialist contractors and established construction companies who operate in technically complex environments. We understand structural steel, facade systems, design and construct contracts, and commercial fitout projects.

Our clients operate under subcontract agreements that impose specific insurance obligations written into every contract. They need risk and insurance advice they can act on, not generic cover that leaves gaps if things go wrong.

We focus on advice that supports and protects your business.

Who We Work With

Not every construction business has the same insurance needs. We’re not the right fit for every business, and neither is every insurance adviser.

Our ideal clients include:

Who We’re Not the Right Fit For

We’re probably not the right fit if you are a sole trader, a small trade business, or a large national group with a dedicated corporate insurance team. We’ll tell you up front if we’re not the right adviser for your business.

What Makes Our Clients Different

The construction businesses we work best with are distinguished by operational maturity and technical depth. These are businesses that understand the value of getting insurance right, not businesses looking for the cheapest policy.

Core Insurance Coverage

Understanding Latent Defects Insurance (LDI) for Construction Projects

Latent Defects Insurance is a specialist product that sits outside the standard construction insurance program. 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.

What LDI Covers

Latent Defects Insurance provides 10-year coverage for structural defects, waterproofing defects, mechanical defects, electrical defects, fire safety defects, and façade defects.

LDI requires independent Technical Inspection Service (TIS) oversight throughout design and construction. This provides 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

LDI is available for building classes 2–9, which includes residential, commercial, and mixed-use projects, and for construction values above $2m.

Developers and builders using LDI have reported real benefits. These include independent quality oversight throughout construction, market differentiation in competitive property markets, long-term asset protection, and reduced exposure to post-completion defect liability.

Important Limitations

Before proceeding with LDI, understand:

• Coverage is subject to policy terms, conditions, and exclusions (not all defects are covered)
• Must be arranged during design phase (not available mid-construction)
• Not all projects qualify for LDI; insurer underwriting applies
• Premium costs are additional to standard construction insurance
• TIS involvement adds cost and requires builder cooperation
• Claims processes have specific requirements and timeframes

Important Information

This information about Latent Defects Insurance is general in nature. It 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. We 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 is ideal. The tender or pre-contract phase gives the best outcome for all parties.

Common Insurance Challenges

Construction businesses face insurance challenges specific to their operating environment. Most don’t surface until a claim is made or a head contractor reviews your certificate of currency.

Why These Challenges Matter

The difference between appropriate cover and inadequate cover often comes down to specific details in your subcontract or project requirements. When these are missed or misunderstood, you either face uninsured exposure or you’re paying for protection you don’t need.

For specialist contractors, the complexity comes from juggling multiple projects simultaneously, each with different insurance requirements. Your liability exposures vary depending on your contract position. Whether you’re the head contractor or a specialist subcontractor, your cover needs to align precisely with your actual responsibilities and the obligations written into each contract.

If your work involves any design input, engineering decisions, or performance specifications, you need professional indemnity insurance. Because PI operates on a claims-made basis, the policy must be active when a claim is made, not when the work was performed. This creates specific obligations that need careful management. For comprehensive guidance, see our Professional Indemnity Insurance page.

You also need to ensure adequate cover for specialist equipment, imported materials, and products in transit. For businesses combining supply and installation work, the liability picture becomes more complex because you carry exposure for both the product and the workmanship.

For construction companies, the challenges are different. If you work as both principal contractor on some projects and specialist subcontractor on others, your cover needs to work across both roles. Managing project-specific requirements, navigating growth into new sectors or geographic areas, and ensuring head contract compliance across a changing portfolio all require insurance advice that keeps pace with your business evolution.

These challenges are not hypothetical. They reflect real situations our clients have faced. This is why a standard off-the-shelf construction policy often falls short for businesses operating at the specialist or established company level.

Our Approach

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. We 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. You may manage some complete projects as principal contractor whilst 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 whilst 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. 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. Confirm that 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:

• Contract Works (or equivalent)
• Public and Products Liability
• Professional Indemnity (if you have any design responsibility)

Required liability limits vary by contract. Some contracts also require:

• Statutory Liability
• Management Liability
• Specific extensions such as non-negligent cover or principal indemnity

We review subcontract insurance schedules as part of our service.

How much Public Liability cover does a construction business need?

Head contracts commonly specify minimum Public Liability limits. The figure required varies by contract and client.

The right level of cover for your business depends on:

• Your project values
• The types of work you undertake
• 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. We take 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. 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.

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.

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. 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. This is why both policies need to be structured carefully and reviewed together.

Next Steps

If you would like to discuss your insurance needs, we’re ready to help. You can call Clear Insurance on 1300 721 132 or email info@clearinsurance.com.au. You can also complete our online enquiry form, and an experienced adviser will be in touch.

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 of disclosure to tell the insurer anything that may affect their decision to insure you. 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: 3 September 2026