Construction Insurance Terms Explained

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Glossary

Insurance & Security

Every commercial project runs on insurance and security that nobody looks at closely until something goes wrong. A certificate proves a policy existed on a date, a contract works policy covers the works but not the defective work inside them, and a bank guarantee sits in place of cash.

These definitions explain what each document covers, what it leaves out, and the gaps Australian builders find too late.

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terms

Reviewed

by insurance brokers

Updated

Sept 2026

All terms

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Certificate of currency

A certificate of currency is a short document from an insurer or broker confirming that a policy was active on the date it was issued. Builders collect them from subcontractors to prove the cover required by the subcontract exists. It proves the policy existed, not what it actually covers.

Certificate of currency

Contract works insurance

Contract works insurance is cover for physical loss or damage to the works while they are being built: fire, storm, flood, theft, impact and malicious damage. It is normally arranged in the joint names of the principal and the contractor for the full value of the works, and runs until practical completion.