Annual turnover policy (construction works)
An annual turnover policy is construction-works insurance covering all of a builder's projects up to an annual turnover limit, an alternative to single-project policies.
Ask Chalkline about this →An annual turnover policy is a construction-works insurance structure that covers all of a builder’s projects for a year up to an annual turnover limit, rather than insuring each job separately. It is the alternative to single-project (single-contract) policies, and it suits builders running multiple sites at once.
Contract works (and the associated public liability) can be arranged two ways:
- Single-project policy: one policy per job, sized to that contract’s value and period. Simple for a one-off or an owner-builder, but admin-heavy and easy to forget if you run several jobs.
- Annual turnover policy: one policy that automatically covers every project you start in the year, provided your total turnover (and usually each individual contract value) stays within the declared limits. You declare an estimated annual turnover up front; the premium is based on it and adjusted at the end against actual turnover.
The annual structure is cheaper and far less error-prone for an active builder, because new jobs are covered automatically rather than each needing its own placement, and there is no gap from a forgotten policy.
For a builder the practical points are to set the turnover and per-contract limits high enough: if you exceed the declared turnover or take on a contract above the single-contract cap, cover can be reduced or a job left uninsured. Declare turnover honestly and review the limits whenever the business grows or you chase a larger job than usual. Keep the policy’s project-value cap in mind when pricing a big one-off, because a single contract over the cap may need its own top-up or separate policy.
Also known as: Annual contract works policy, blanket works policy, turnover-based policy.
Category: Insurance / Construction works.
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References
- Construction works insurance (Chalkline) (verified 2026-06-03)
Last updated: 2026-06-03. Verified: 2026-06-03. Quarterly review for currency.