As a builder, getting stuck into the job is your main concern every day. The last thing you’ll want to have to deal with on-site is another contractor’s mistake, or an act of God, meaning that you have to use your own valuable time and money to set things right. Fortunately, there is a cover designed for situations such as these – and it’s called Contractor’s All Risks insurance.
What is contractor’s all risks insurance for?
Contractor’s All Risk (CAR) insurance is designed to protect all your works-in-progress, which simply put means that if your work was damaged due to flood, fire, earthquake or any other natural occurrence, it would still be protected. And if say, another contractor’s faulty electrical wiring caused a fire which burned down the house you were building, you’d be able to claim the costs of repairing the damage from your insurer. This protects you from having to use up your time and money fixing things if an accident happens that isn’t your fault.
Do builders need contractor’s all risks insurance?
When you are working on a construction site, it’s a good idea to have that added layer of protection. While public liability insurance protects customers and members of the public and employer’s liability insurance covers your own workers, CAR insurance can fill in the grey areas in between. It will protect you for damage to your equipment, materials or any hired-in plant. It also protects all your temporary buildings, including site huts, that are used in connection with the contract, as well as all your fixtures and fittings.
The reason it’s such an essential cover for builders is that, as a builder, most of your work is conducted on construction sites, so having this cover means that you protect all your work, plant, machinery, tools, equipment and materials under one cover. It also offers protection against acts of God, which wouldn’t typically be covered under your public liability, as well as another party’s mistake, which could well cost your time and money to fix.
What does contractor’s all risks insurance cover?
As well as the above, It also cover damage due to vandalism or theft. It can be added onto an existing builders insurance policy and having CAR in place shows contractors that you are diligent and professional.