Contractors All Risk Insurance
If you work in construction, you’ll know of the risk of loss or damage to building or civil works, through damage to the property of third-party claims. Here contractors all risk insurance policy can work to help protect the contractor or the employer from such risk or damage.
What is the Contractors 'All Risk' Insurance?Contractors' all-risk insurance policies are considered non-standard insurance policies while the primary reason for purchasing a contractor’s all risk insurance cover is to guard against anything you are doing on-site.
Damage claims for a property may include things such as the structure being incorrectly constructed or receiving damage during a renovation. Whereas third-party claims may come from subcontractors becoming injured while working. Here the contractors all risk insurance policy helps to bridge the gap between these two risks into a single common insurance policy.
Who can take out Contractors 'All Risk' Insurance?Contractors works insurance is typically taken out jointly by both the contractor and the employer at the same time, with multiple parties included in the same policy. They each keep the right to file a claim against the insurer, although all parties also have the responsibility of notifying the insurer of any grievances and damages that could bring about a claim, even if there is no intention to make one at that time.
In essence, if there are unforeseen events, the contractors all risk insurance will cover the costs of the work being re-done. An example of this would be if, during the extension of a house, it was hindered by fire, the customer is not at fault and neither are the contractors. As a result, contractors all risk insurance would payout for the work to begin again.
These policies cover a wide range of aspects, from plant hire costs to any temporary works. Contractors all risk insurance policy can save you money in the long run, should the above ever occur.
What if I own a building but already have a policy?Your current insurance cover for a building that you own and have decided to refurbish or rebuild will not cover you whilst any renovations are in progress. You must take out separate insurance.
What is an extension of cover?As an added extra to the insurance policy which covers you during the period that the construction or renovation is taking place, most forms of contractors work insurance also have the ability to cover any issues which may only become obvious following the handover of the premises. This is more often than not known as the maintenance period.
Do I need any other cover apart from Contractor’s All Risk Insurance
While your CAR insurance policy will cover you against any accidents or damages as part of the project, it might also be worth taking out additional insurance to ensure you’re protecting against any unforeseen issues or problems that occur off-site related to the project.
This might include taking out goods in transit insurance to protect against any damages while moving equipment, it would also be worth checking on van insurance/fleet insurance in case of any accidents or breakdowns.
You might also consider taking out public liability insurance to protect against any potential accidents or injuries involving members of the public around the site.
How is the risk calculated?
There are a number of considerations taken into account by insurers before providing a CAR policy, but the main factors are typically:
- The scope of the project you’re working on
- The value of any items or work being insured as part of the policy
- Where the project is taking place (insurance in London is typically higher)
- The expected duration of the project and the time the insurance will be in place
Are temporary structures included in my Contractor’s All Risk Insurance?
It depends and this is something you’d have to confirm with your insurance provider.
Sometimes temporary buildings built on site will automatically be covered under your CAR policy provided they fit within the original scope of work you quoted when taking out the policy.
If the temporary structure falls outside this initial scope then you’ll need to take out separate insurance.
To avoid any delays with projects it’s always worth considering whether you’ll need temporary structures at the beginning of the project.