Contractor’s all risks insurance is a type of policy that offers cover for ongoing work on a construction site. This type of insurance is a non-standard insurance policy, particularly useful for contractors, builders, plumbers, and electricians, who might find themselves working on a construction site.
An optional cover that can be added onto any relevant public liability insurance policy, it includes contract works insurance, which can pay to repair or re-do work on a site should there be fire, flood, storm, vandalism or theft involved. A contractors’ all risk insurance protects against the costs of damage and loss.
Who needs to take out contractor’s all risks insurance?
Contractor’s all risks insurance is generally taken out by anyone who works on a construction site, including:
- General building contractors
- Electrical contractors
- Plumbers contractors
- Carpenters and Joiners
- Double glazing installers
- Heating engineers
- Air conditioning engineers
What is the purpose of contractor’s all risks insurance?
The main purpose of contractors’ all risks insurance is to make sure that your ongoing work on a construction site is covered. So, if there is an unforeseen event such as flood or fire, the contractor’s all risks insurance will pay to have the work repaired or re-done, meaning that you don’t end up out of pocket.
For example, in the event that you are halfway through building an extension on a customer’s home and the extension were to be destroyed by fire, you cannot expect the customer to pay for the work to be re-done and as the contractor, you would not want to pay either – this is where your Contractors all risks insurance is a life saver!
What’s included in a contractor’s all risks insurance policy?
Contractor’s all risks insurance has a broad spectrum of covers, and includes cover for your contract works, your own plant, your tools and equipment, your employees’ tools, hired-in property and temporary buildings during construction, as well as their fixtures and fittings.
Why is contractor’s all risks insurance necessary?
The main reason for purchasing a contractor’s all risks insurance policy is to protect against the work you’re undertaking on site. For example, if you were building a loft extension, and the property below caught fire, then your customer would still expect you to finish the work, but would not be likely to be willing to pay you to do it again. In this instance, your contractor’s all risks insurance policy would step in, and cover the costs of repairing or re-doing the work already undertaken on the site.
As well as this, it also covers your own plant, tools, and equipment, so if any of these were damaged while on site, you could claim the costs to replace them through your policy. Contractor’s all risks insurance even covers any hired-in plant, tools and equipment you use on a contract too, so if there’s damage sustained to them or they’re stolen from site, you’ll still enjoy the same levels of cover as you would with your own plant, tools and equipment.