General Insurance 3 min read • Updated September 2026

How long does contract works insurance last?

IB
Insurance Bhaiya Editorial Team
Updated September 2026 • 3 min read
Quick Answer / Executive Summary

Contract works insurance normally runs from the start of works until practical completion or handover, with an option to extend through a defects or maintenance period, commonly 12 months, so that damage arising from rectifying snagging items is also covered. It can also be extended if a project overruns its original completion date.

Key Takeaways at a Glance
  • Cover starts on the agreed commencement date, not the date the policy is purchased.
  • It ends at practical completion unless a defects-period extension is added.
  • A defects/maintenance extension of around 12 months is common and worth confirming upfront.
  • Project overruns need an active extension request — cover doesn't automatically continue past the original end date.
  • Multi-phase projects may need cover structured in stages rather than a single continuous period.

The core cover period

The base period of a contract works policy matches the construction programme: start on site to practical completion. This is the period when the works are most exposed, since they're incomplete, often unsecured overnight, and not yet covered by a finished building's standard insurance.

Why the defects period matters

After handover, contractors typically remain responsible for fixing defects for a set period. If rectifying a defect (say, replacing a leaking roof detail) causes further damage to finished work, a defects-period extension on the contract works policy is what responds — without it, that damage could fall into a coverage gap between the expired contract works policy and the building's new standard insurance.

What happens if the project runs late

If a project overruns its planned completion date, cover does not automatically extend — most insurers require the contractor to request and pay for a formal extension before the original expiry date. Requesting it after the fact, or after a loss has already occurred, is where problems arise.
Real-Life Case Incident & Precedent
Precedent: Extensions requested and confirmed in writing before the original expiry date keep continuous cover in place; requests made after expiry typically cannot be backdated.

Extension request made just in time

Scenario: A contractor's renovation project ran six weeks over its planned finish date due to a materials delay, with the original contract works policy due to expire before the new estimated completion.

Resolution & Judicial Outcome: The contractor contacted their broker two weeks before expiry, paid an additional pro-rata premium, and secured a formal extension, meaning a subsequent storm during the extra six weeks was still covered.

Related Case Study Simulation: Read Analysis

What You Should Do: Step-by-Step Action Plan

1 Confirm the exact start and end dates written into the policy schedule, not just the quote.
2 Ask whether a defects/maintenance period extension is included or needs to be added separately.
3 Diarise the policy expiry date well before the planned completion date, especially on long projects.
4 Contact your broker as soon as a delay becomes likely, rather than waiting until the expiry date.
5 Get any extension confirmed in writing before the original policy lapses.

Critical Mistakes to Avoid

  • Assuming cover automatically continues if the project simply runs late.
  • Leaving an extension request until after the original expiry date has passed.
  • Forgetting to add a defects-period extension and discovering the gap only after a claim.
  • Not telling the insurer about a phased or multi-stage programme that doesn't match a single continuous period.

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