What is it and why do you need it?
A Contractors All Risk Insurance policy is an essential part of any business that hires contractors in the construction industry.
This type of all risk insurance covers damage or loss to property during the course of a job, and can help protect your business from costly legal expenses.
On this page, we discuss what is covered by Contractors All Risk Insurance, as well as why it’s important for your business to have this coverage.
What is Contractors All Risk Insurance?
Contractors All Risk Insurance covers loss or damage to building works while your company is responsible for them.
For example, if your company is responsible for installing a dormer and accidentally burns it down during construction, this is not a third party’s property nor is it part of the existing structure.
Therefore, you will need Contractors All Risk insurance to cover the cost in case an event like this does occur. Without this type of insurance, you would be taking on a huge financial risk.
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Types of cover
Contract Works
Contract Works insurance will help protect the work in progress on a construction site in the event of damage before responsibility has been handed to the principal.
Contract Works insurance will cover any loss or damage to the property and materials. It is however important to note that if you are working on an existing structure, the existing structure will not be covered and should be insured by the property owner.
Public and Product Liability
If you are a business owner in the construction industry, public liability and product liability insurance are two critically important types of coverage to consider.
These policies can help protect you from claims arising from injuries or property damage sustained by third parties during your construction activities.
By having this coverage in place, you can help safeguard your business against potential financial loss.
Employer’s Liability
Employers’ liability insurance can help cover the legal expenses of any claims that may arise from an employee becoming injured or ill at work.
All companies in the United Kingdom are legally required to take measures to protect the safety of their employees, and this type of insurance is one of the few that is compulsory. This can help ensure that you are covered in the event that an employee makes a claim against you.
This is vital to bear in mind if you are an employer. You need to make sure that you have the right type of legal liability insurance to protect yourself and your employees.
Own Plant and Hired in Plant Cover
Own plant and equipment insurance cover helps protect against damage to your own plant and equipment while it is in your custody, control, or hired out under a defined agreement. For example, this can include scaffolding, temporary buildings, site office contents, and site welfare facilities.
Having this type of insurance in place can give you peace of mind in knowing that your equipment, temporary buildings and site contents are protected against damage or loss.
Hired in plant cover, on the other hand, will protect you for any damage to plant and machinery that is not owned by your company but is under your control. This could include cranes, excavators, and dumpers amongst other things.
If this type of equipment is damaged while under your control, you could be held liable for the financial costs of repairs or replacement. As such, it is important to have this insurance in place to protect your business against potential financial loss.
Summary of types of cover
So Contractors All Risk Insurance covers the cost and length of the contract that is covered by Contract Works and additionally covers you for your own plant and hired for plant for the works at the building site.
You can also take out Contractors Combined Cover to additionally provide you with public and employers liability insurance.
Why you need Contractors All Risk for Your Business
As a contractor or developer, it is essential to have Contractors All Risk Insurance in place. This type of insurance policy covers the structure of a building from start to finish, whether you are constructing an extension or a new property.
Having a Contractors All Risk insurance policy in place will give you peace of mind and protect you financially in the event that something goes wrong.
Contractors All Risk Insurance is therefore vital for tradesman working on construction projects, as it gives them the protection they need in case anything goes wrong.
Covers more than Public Liability insurance
This type of insurance policy is not a standard Public Liability policy, which only covers property damage caused to third-party premises (existing structures). Contractors All Risk Insurance will cover any damage caused to the property during the course of the job, no matter who is at fault.
For example, if a window is broken during construction, this will be covered by Contractors All Risk Insurance. If the damage is caused by a third party (e.g. vandals), then it would be covered by Public Liability insurance.
It is therefore extremely important for contractors to protect themselves and their business by taking out a Contractors All Risk insurance policy.
Protects against future legal liability
As well as covering the cost of current damages caused for example by a fire at the construction site, this type of insurance will also cover you against any future claims regarding work that has been completed in the past.
Having this type of coverage gives the insured much stronger protection than they would have with a regular Public Liability policy.
Any contractor who is serious about protecting their business should make sure to take out a Contractors All Risk Insurance policy.
What will you do?
Hopefully as well as having a better understanding of what Contractors All Risk Insurance covers you for as well as the difference levels of protection, you also now realise just how important this type of insurance cover is for your business and the benefits of taking out this type of policy.
If you are thinking of starting a building project, make sure you get Contractors All Risk Insurance to cover yourself and your business. It could save you a lot of money and stress in the long run and the peace of mind you get will far outweigh the cost of the All Risks insurance policy.
Why not get in touch with one of our team members today to discuss your requirements and get a no obligation Contractors All Risk Insurance quote?