What is contractors all risk insurance?
Dedicated insurance that helps to protect you while you carry out your trade
Contractors all risk Insurance or as it’s also commonly known, contract works insurance, helps protect businesses as either a contractor or employer (client). Providing cover against the costs incurred from insured perils, losses or damages incurred whilst working on an insured construction project. The policy is designed to cover all risks associated with a construction project. Cover is commonly issued under the joint names of a contractor and a principal (client), cover usually also includes public liability insurance. Policies are flexible allowing us to tailor cover to match your businesses needs and requirements.
Key features of contractors all risk & contract works insurance
Contract All Risk provides cover against physical loss or damage to any works during its construction. It is an all risk policy (subject to policy conditions) and also provides cover for third party liabilities and the advance loss of profits. Any limits imposed under a contractors all risk or contract works policy would be based upon the estimated value of the contract for which work is carried out.
Policy features include:
• Provides cover for any owned and/or hired in plant and machinery.
• Protection against damage to permanent and/or temporary works and building materials, whilst on site and whilst in transit to and from site.
• Cover for tools and equipment.
• Cover for the increased cost of working through additional business interruption cover.
• Cover for the period after the project’s completion for up to 12 months. Covering contractual obligations forming part of the maintenance or defects liability period.
• Cover for any party that is required to be a joint named insured under the contract
• Additional cover towards professional fees and debris removal.
Benefits of having contractors all risk insurance
If you run a construction business or you are involved in construction as a developer or project owner then you will likely need the comprehensive cover and protection offered in contractors all risk or contract works insurance policy. Our contract works cover will provide you with continuous coverage for all stages of the construction process – from inception, to commissioning, testing and finalisation and beyond, you’re covered from the various risks presented during the stages of construction. Regardless of the size, complexity and length of your construction project we can help with a bespoke Contract Works policy to give you ultimate peace of mind during your construction projects.
Business insurance specialists
Our insurance specialists are on hand to discuss your needs as a contractor or employer of contractors. Our team will endeavour to listen and understand your business requirements in order to provide you the cover you need at the right premium.
With the ability to compare quotes from many of the major UK insurance providers The Insurance Octopus is well placed to ensure you get a competitive deal. We are able to offer a wide range of payment options, offering flexibility. Contact us now for a competitive quote.
Contractor All Risk Insurance FAQ's
Get the answers you're looking for
Do I need contractors' all risk insurance?
Contractors’ all risk (CAR) insurance covers you for any property damage, as well as third-party claims for injury or damage. If you are a contractor in building, construction or a related trade, these are the main risks you face every day, so it is a wise move to take out CAR insurance. This gives you the most comprehensive cover for the most likely problems that may arise.
Can I insure my materials & equipment whilst on site?
Our insurance cover for contractors includes a broad range of covers, and damage or theft relating to equipment on site is one of them. Be sure to look over exactly what is covered when you take out cover, and request any add-ons you may need. Our insurance specialists are always on hand to discuss your requirements in order to tailor a policy to your exact needs.
Am I covered for tools stolen from an unattended vehicle?
If the vehicle is on site, and the specifics of the incident meet the conditions specified in your tradesman and contractors insurance policy, then theft of tools is covered. Be sure to read the details of your policy – it may be that a vehicle left unattended which wasn’t locked may be contentious when it comes to making a claim against theft.
How contract all risk cover works
Examples of Contractors All Risk Insurance in action
Fire Damage Costs £20,000
A contractor was midway through the process of building an extension to a client’s family home. It was a 2-storey extension and had involved a great deal of labour and materials when it fell foul of a fire that all but destroyed the work that had been completed so far. The client was not responsible for the fire, and couldn’t pay the £20,000 for the work to be redone; fortunately, the contractor had a contractor’s all risks insurance policy. This covered the cost and set everything back on track.