Contractors All Risks Insurance

Contractors All Risks insurance (sometimes referred to as contract works insurance), construction all risk insurance or builders risk insurance, provides cover for risks on work that is underway (Work in Progress Cover) on a building or construction site. For instance, if work that’s in progress is damaged as a result of a fire, flood, storm, vandalism or theft, then this cover can help to pay to repair or redo that work. These policies can also cover your tools and plant needed for the job that are left on site.

A contractors all risks policy, as the name suggests, typically covers the risks normally associated with a construction project. It’s generally worth considering if you or your business undertakes construction contracts that require you are on-site for many weeks or months.

Defective workmanship can often be excluded from your policy; you would need to check with your broker to make sure you are covered for this risk under your policy or if you would need to add this on as an extra.

As a contractor you should obtain a general liability policy to protect yourself whilst working on any projects.

You would usually obtain a general liability insurance policy as a contractor, this will protect you and cover the costs of any lawsuits against you for alleged bodily injury or property damaged caused by you or one of your employees.

Construction projects can be complicated undertakings, and if problems were to arise before the project is completed, things can become difficult to resolve. Imagine if you were near the completion of a project and the building was to suffer irreparable damage and you had to start over. The cost could be huge. You can help protect against these ever-present threats by purchasing Contractors All Risks insurance to pay for the cost of the work to be redone.

Contractors all risk insurance is an important policy to have in place if you are a tradesmen or contractor. This type of insurance offers one of the most comprehensive methods for protecting building works and the tools, plant and equipment on a construction site.  Contractors typically work on a wide range of different construction sites. With the sheer variety of different work places comes an equally diverse range of different risks and perils.  Although these construction sites will vary from site to site, there is one common threat likely to be shared by them all: the risk of theft, loss or damage to the tools, equipment and materials you own and use.

Contractors all risk insurance (CAR) is designed to provide you with the protection you need for the tools of your trade, the plant and equipment you may be using on site, as well as the materials required to get the job done.  Contractors all risk insurance is designed to protect you against such risks fire, floods, storms, malicious damage, vandalism and theft.

The “contract works” section will form the main element of a contractors all risks insurance. The contract works section provides cover for the value of the new materials and property being used and built on a project (e.g. new house or extension etc.). However, where there is an existing property (e.g. the existing structure when building an extension), cover for the existing property is excluded and must continue to be insured under its own insurance cover by the property owner.

Contractors all risks insurance policies principally cover the contract works (Work in Progress) for ‘all-risks’ (Fire, Flood, Theft etc.), but they can also include additional covers for your own plant, hired-in plant, Tools and materials. Contractors All Risks Insurance policies (which are also referred to within the industry as Contract Works Insurance) are specially designed for the construction & contractors business sector.  Sometimes referred to as “Work in Progress Cover” they can cover various trades when working at a contract site.

Contractors all risk insurance can prove vital for contractors in the construction trade.  The tools and equipment alone used by contractors can be very expensive to buy and replace and they are also an essential requirement to do certain jobs.  Without these, you could to miss out on winning new business and therefore a loss of money earned. Contractors all risk insurance can prevent contractors from being in a position where they lose work and get into financial difficulty as a result.