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NZ Police: Contract Works - Annual

The Policy covers contracts where NZ Police are responsible for insurance of the Works. Most Conditions of Contract stipulate that the Principal (NZ Police) shall insure the Works where the Contract is for additions and alterations to existing structures, but this Policy enables the Principal to assume responsibility for insurance of the Works for New Building Contracts as well. It has been found from experience that NZ Police can obtain the cover at a lower cost than the insurance charge the Contractor would otherwise include in the tender sum.

Policy Details  
Policy number
$6,000,000 each contract
Deductible Arson: $25,000
Earthquake: various
All other claims: $10,000
QBE Insurance (Australia) Limited


The insurance is to apply to each Contract for which the original contract price does not exceed $6,000,000 entered into by the Insured during the Period of Insurance for work in New Zealand.

For contracts in excess of $3,000,000 the Contract Works Questionnaire must be completed and provided along with the documents specified in the form to Kyle Reesor or Dean Wells at Marsh, for the insurer’s approval, prior to cover attaching under this Policy.

Unless the context requires otherwise, "Contract" means a contract, including any of its subsidiary contracts, to which this insurance applies. "Project" means the subject of that Contract.

Each Project is deemed to include the supply, construction, erection, testing and commissioning of the contracted works, and other associated works as generally defined in the Contract and all other works deemed necessary by any of the Insured in connection with the Project.


To obtain the maximum benefit from this Policy you should ensure that:

Tender documents are drafted to make it quite clear that Police will arrange insurance of the Works and the Contractor’s tender must exclude any allowance for such cost.
The Contractor is responsible for the excess under the Contract Works Insurance.
The Contractor provides Public Liability Insurance for a minimum limit $2,000,000 or if the contract value exceeds $2,000,000 then a limit of 1.5 times the total contract value.

The Contractor is responsible for:
- Insurance of Vehicles, Vehicle Third Party Liability and Contractor’s Plant and Equipment.
The Contractor must supply Police with a Certificate of Currency from their Insurer (not Broker) confirming Public Liability Insurance is in place and limit arranged.
You should also ensure that Contracts made due allowance for:

  • Professional Fees
  • Demolition Costs
  • Principal Supplied Equipment
  • Escalation of Costs during:
    (a) Construction
    (b) Rebuilding

The limit of $6,000,000 any one Contract under the Policy applies to the sum total of these items as well as the value of the Works (including the value of any existing structure if this is required to be insured by Police).