- Why Construction Insurance Quotes Can't Be Standardised
- The Core Information Brokers Will Ask For
- What Affects the Final Premium
- How to Prepare Before You Call
- FAQs
- Get Your Quote Started
Getting a construction insurance quote isn't like buying car insurance online. There's no algorithm that can assess a half-built residential development, a subcontractor arrangement, or a contract works project with multiple principals and return an accurate premium in 30 seconds. Brokers need real information to price your cover properly — and the more prepared you are before that first conversation, the faster and more accurate the quote will be.
Here's exactly what a broker will ask, why each piece of information matters, and how to get ready before you pick up the phone.
Why Construction Insurance Quotes Can’t Be Standardised
Construction risk is genuinely complex. Two builders with identical annual turnovers can face very different exposures depending on the type of work they do, the contracts they sign, where they build, and who they hire.
Self-serve platforms work well for simple, low-complexity products — but they fall short when you're dealing with contract works, home warranty obligations, or multi-party construction projects. The premium isn't just a function of your revenue. It reflects the specific nature of your risk, and a broker needs to understand all of those variables before they can price it properly.
The Core Information Brokers Will Ask For
1. Your Business Structure and Licence Details
Before anything else, a broker needs to understand who they're insuring:
- Your legal business name and ABN
- Whether you operate as a sole trader, partnership, company, or trust
- Your builder's licence number and the states where you're licensed
- Any subcontractor licences or endorsements you hold
For residential builders, your licence class matters. Some policy types — including Builders Warranty Insurance, which is mandatory for residential building work in NSW, WA, ACT, VIC, and SA — are tied directly to your licence status and eligibility. A broker can't arrange that cover without first confirming you meet the relevant state requirements.
2. Annual Turnover and Project Revenue
Your annual construction turnover is one of the primary rating factors across most construction insurance products. Brokers typically ask for:
- Your projected turnover for the current financial year
- Your actual turnover from the previous financial year
- The split between residential and commercial work, if applicable
If your turnover fluctuates significantly year to year — which is common in construction — be honest about that. Underestimating your turnover to reduce your premium can leave you underinsured or create real problems at claim time.
3. The Nature of Your Work
This is where the detail really matters. Insurers assess risk differently depending on what you actually build. A broker will want to know:
- The types of projects you take on — new residential builds, renovations, commercial fit-outs, civil works, and so on
- Your average contract value per project
- Your largest single contract value in the current or upcoming period
- Whether you work on heritage buildings, high-rise, or any high-risk structural work
A builder doing single-storey homes in suburban Sydney carries a very different risk profile from one doing multi-storey apartments or commercial tilt-slab construction. Work type directly affects which insurers will quote and at what price.
4. Contract Works Details
If you're seeking Contract Works Insurance — also called Construction All Risk or CAR insurance — the broker will need project-specific information:
- The contract value of the works to be insured
- Project start date and expected completion
- Site address and location
- Whether the site is greenfield, infill, or involves existing structures
- Who the principal is and what the contract says about insurance obligations
Some contracts require the principal to hold the policy; others put that obligation on the contractor. Your broker needs to know which applies before they can structure the cover correctly.
5. Subcontractor Arrangements
How you use subcontractors has a direct bearing on your liability exposure. Brokers will typically ask:
- Whether you use subcontractors and how frequently
- Whether your subcontractors hold their own public liability insurance
- Whether you require certificates of currency before subbies come on site
- Your annual subcontractor spend
If your subbies aren't adequately insured, that risk can flow back to you. A broker needs to understand this to assess your true exposure.
6. Claims History
Insurers want to see your claims history — usually for the past three to five years. Be prepared to provide:
- The number of claims made
- The nature of each claim (property damage, personal injury, defects, etc.)
- The total value of claims paid
- Whether any claims are currently open or in dispute
A clean history generally supports better premium outcomes. But a history with claims isn't necessarily disqualifying — brokers with access to a broad insurer panel can often find specialist markets willing to underwrite risks that standard insurers won't touch.
7. Public Liability Limits Required
Public liability is almost always part of a construction insurance package. You'll need to confirm:
- The minimum limit of indemnity required under your contracts — commonly $5 million, $10 million, or $20 million for larger commercial work
- Whether your principal contracts specify a minimum limit
- Whether you need cross-liability or principal's liability extensions
Getting this wrong means your policy may not satisfy your contractual obligations. That's a compliance problem, not just an insurance one.
8. Workers Compensation Details
If you employ workers directly, Workers Compensation Insurance is compulsory in every Australian state and territory. A broker arranging your construction cover will need:
- Your state of operation — each state runs its own scheme with its own requirements
- Your estimated annual wages for the coming period
- Your industry classification
- Any prior claims under your Workers Compensation policy
In some states, Workers Compensation is managed through a state-run scheme and can't be placed through a private broker. Your broker will advise on what applies in your jurisdiction.
9. Builders Warranty Insurance Requirements
If you're a licensed residential builder in NSW, WA, ACT, VIC, or SA, Builders Warranty Insurance is a mandatory compliance requirement for most residential building work above the relevant contract value threshold. To arrange this cover, a broker will need:
- Your builder's licence number and state of licence
- The specific project address and contract value
- The property owner's details
- Confirmation that you meet the insurer's financial and technical eligibility criteria
Eligibility is assessed by the insurer — not just the broker — and involves a review of your financial position and building history. If you're approaching a compliance deadline on a project, raise this early. There's no workaround for mandatory cover, and delays in the approval process can hold up your building permit.
What Affects the Final Premium
Once a broker has the information they need, they'll approach their insurer panel to obtain quotes. The premium you're offered will reflect a combination of:
- Your annual turnover and project scale
- The type and complexity of work you do
- Your claims history
- The limits and extensions you need
- Current market conditions and insurer appetite for your risk class
As a member of the Steadfast Network — Australasia's largest general insurance broker network — ABS Insurance Brokers has access to a broad panel of insurers. That means your risk is placed with the market best suited to your specific situation, not just the first available option.
Premiums are always quote-based and vary by client and policy. There's no fixed rate. Any broker or platform quoting you a price without asking these questions in detail is almost certainly not pricing your risk accurately.
How to Prepare Before You Call
The more organised you are, the smoother the process will be. Before you contact a broker, pull together:
- Your ABN and business structure documents
- Your builder's licence number(s) and any endorsements
- Last year's financial statements or BAS showing turnover
- A list of current and upcoming projects with contract values
- Certificates of currency for any existing policies
- Your claims history for the past three to five years
- Any contracts that specify insurance requirements
You don't need everything ready for the first call. But having it on hand means your broker can move faster and come back with a more accurate quote.
FAQs
What is a construction insurance quote and what does it cover?
It's a broker's or insurer's assessment of the premium required to cover the risks associated with your building or contracting business. Depending on your needs, it can cover contract works, public liability, workers compensation, tools and equipment, and Builders Warranty Insurance, among other products.
How long does it take to get a construction insurance quote?
Turnaround depends on the complexity of your risk and how much information you can provide upfront. Straightforward covers can be quoted relatively quickly; complex contract works or multi-policy packages may take longer as the broker approaches multiple insurers on your behalf.
Why can't I just get an instant online quote for construction insurance?
Construction risks vary significantly depending on work type, contract values, subcontractor arrangements, and compliance requirements. Self-serve platforms are built for simple, low-complexity covers and typically can't handle those variables. A broker-led process is better suited to getting you the right cover at an accurate price.
Do I need a separate quote for each project, or can I get an annual policy?
Many builders hold annual policies covering their ongoing business activities — public liability and tools cover, for example. Contract Works Insurance, however, is often arranged on a project-by-project basis. Your broker can advise on the most practical structure for how you work.
What happens if I underestimate my turnover when getting a quote?
If your actual turnover exceeds what was declared, you may be underinsured. Some insurers will adjust your premium at renewal based on actual figures; others may reduce a claim payout proportionally if the declared turnover was materially lower than reality. Always provide your best honest estimate.
Is Builders Warranty Insurance included in a standard construction insurance quote?
Not automatically. It's a separate mandatory product with its own eligibility criteria and application process. If you need it, raise it explicitly when you contact your broker so it can be arranged alongside your other covers.
Can a broker help if I've had claims in the past?
Yes. A broker with access to a wide insurer panel can often find markets willing to cover businesses with prior claims, sometimes with specific conditions or exclusions. Being upfront about your claims history is always the better approach — it avoids problems at claim time and helps your broker find the right fit.
Get Your Quote Started
The quoting process works best when it's a conversation, not a form. If you're a builder, tradie, or contractor looking to arrange construction cover, the team at ABS Insurance Brokers works with clients across NSW, VIC, WA, SA, and ACT to find the right cover for their specific situation. Reach out via the quote request form or by phone to get started.
