To the professional who is looking to learn all there is to know about insurance, there are a lot of things to consider. Even when you get past the terminology and you just start looking at the specifics of each kind of insurance, it can still be pretty overwhelming to even the experienced researcher. So, let’s just slow things down here, and take a look at Contractor’s All Risks Policy, or CAR, for short. There’s quite a bit to know, including who this is meant for, and it’s important to take it in so that you can make an informed decision about whether the cover is suitable for your business’ needs.
What is contractor’s all risks insurance?
CAR insurance is a specialised form of insurance that is intended specifically to provide coverage for ongoing works on a construction site. Sometimes referred to as contract works insurance UK, contractor’s all risks provides cover from unforeseen disasters such as fire, flood, storm, vandalism and even theft. This allows you to keep work on schedule in the event the unfortunate should occur, by paying the costs for repairing or re-doing the work.
What does it cover?
There are several elements that this kind of insurance covers, most of which are out of the ordinary from other kinds of insurance. You have to look at CAR insurance as an additional kind of insurance that you would purchase if you are working on construction sites, as a traditional public liability insurance policy doesn’t cover any damage to the work on site, or any hired-in plant or equipment.
As well as covering fire, flood, storm, vandalism and theft, as stated above, it also offers additional coverage for construction faults and negligence. It’s the kind of insurance that you take out when you are working alongside other companies on a specific contract, offering you protection from the many hazards you may encounter on the site.
Additionally, those that are transporting equipment to the site are also covered, a good example of this being a car accident where the equipment is damaged or broken. This provides an extra peace of mind for many out there working in these conditions.
Contractors all risks insurance with Tradesman Saver will cover the contract itself, your own plant and equipment, temporary buildings and hired in plant and property. It is a comprehensive cover offering complete protection and peace of mind for any contractor.
Who needs it?
By now, you can see that this kind of all risk insurance is sounding pretty good and it is definitely something that you should be looking at. Now the question becomes, who exactly needs this kind of insurance?
CAR insurance is best for contractors, who are looking to work on projects with more than one party involved. In other words, a contractor’s all risks policy is something that you’ll want, if you are looking to work on building projects in conjunction with any other third party, like a home or building owner.
It means that, as a contractor in charge of your people, their work, and the structure that you’re creating, everything is going to be covered in order to give you the quality results that you’re looking for, and your work will be protected against even the rarest of occurrences.
Insurance for contractors is something important and often understated in the world that we work in. These kinds of policies protect contractors to make sure that both the people on the project, as well as the properties that they’re working on, are protected.
As far as who needs to be looking at CAR insurance, the list stretches to contractors – those who are in charge of temporary buildings during construction – and those in charge of employees who are working in these kinds of conditions.
What are the benefits?
You’ve read about the benefits of this kind of insurance throughout, but let’s take a look at them a little closer to appreciate them even more:
- It protects property: There is always tension when you are building or modifying property that belongs to someone else. CAR gives everyone the peace of mind that the contract you are working on is protected if something goes wrong during the construction process
- It protects you in freak accidents: Fires, floods and earthquakes – it’s all beyond the control of the people working on the project, so this insurance takes the heat off and offers a specialised kind of protection for those chaotic moments
- It gives peace of mind: It offers provides peace of mind for anyone who is involved in this process, which is probably the biggest benefit to all involved
- It’s for everyone involved in contracting: This kind of insurance is intended specifically for anyone who is in the world of contracting and needs some extra protection to keep things flowing in the right direction
Having the proper insurance in place yields a lot of great benefits for all those involved, and it’s not something that you should take lightly. If you’re working on a construction site and looking at making sure that you’re moving through this in the right way, CAR insurance is a must-have to get the job done right, with as minimal stress as is possible.