Should I invest in contractors' all risk insurance?

Contractors’ all risk insurance (also known as contract works insurance) isn’t essential – but, if you’re a tradesman, it’s usually worth having in place. The policy does what it says on the tin. It protects the contract works against ‘all-risks’ on a construction site and, should the worst happen, it could be the lifeline that you need to ensure your business survives. It can also include additional cover for own plant, hired-in plant, employee's tools and public and employers' liability insurance

a contractor covered by contractors' all risk insurance

3 reasons to invest in contractors’ all risk insurance

1. It prepares for the worst case scenario

A construction site is a very high-risk area. There are countless things that could go wrong – and, if they do, it’s your responsibility to make sure the problem is rectified and the job is finished.

Say, for example, you’re building an extension and a fire starts inside the property. As the contractor, you’d be expected to fix any damage plus the extension to the for no extra cost. It may have been a freak accident – but you agreed on a price for the work and, no matter what, you’re expected to stick to it. 

This is where contractors’ all risk cover can help. The policy would cover the cost of any repairs and allows you to get the project back on track. It prepares you for the worst case scenario and provides peace of mind that, whatever happens, you’re able to complete the job without suffering financially.

2. It protects your assets

Being your own boss is great – but it does mean you’re responsible for your own tools and equipment and, if these are damaged or stolen, you could face serious financial repercussions.

Tools and equipment can be very expensive. If you can’t afford to replace them, you’re likely to lose your current construction job, as well as miss out on future contracts. 

After all, a tradesman can’t work without his tools and it’s easy for the situation to quickly get out-of-hand.   

Again, this is where a contractors’ all risk policy can be of benefit. Such insurance can offer protection for all building materials, plant machinery, tools, equipment and hired-in property. In the event of damage or theft, they can be quickly replaced and you’d be free to get on with the job as though it never happened.

Contractor and employer shaking hands about work covered by contractors' all risk cover

3. It can help to secure business

Employers want peace of mind just as much as you do. If they can see you’re a reliable contractor – willing to invest in contractors’ all risk insurance, they’re much more likely to recruit you for the job.

That’s why it’s often a good idea to invest in a blanket contractors’ all risk policy. This covers all projects undertaken within a pre-specified period of time and, as it’s already in place, it could be the deciding factor – helping you to win new jobs and (ultimately!) boosting your bottom line.

Contractors’ all risk insurance at Rigby Financial

If you would like to find out more about contractors’ all risk cover and how it could help you, please feel free to get in touch. Our team of specialist advisors, here at Rigby Financial, are always happy to assist. They can provide further information on the benefits of this type of insurance, and whatever your trade (e.g. builder, bricklayer, plumber etc.), they can help to identify the best policy for you.

Being a contractor doesn’t have to be risky. Just invest in the right insurance and protect yourself against all eventualities. Either call us today on 01744 886077 to discuss contractors’ all risk insurance in further detail or send an email to and we’ll get back to you as soon as possible.