As a UK building company, you’re no stranger to risk – from clients not paying on time, natural disasters or vandalism damaging projects, understanding and protecting yourself against risks and their associated costs are essential for running a successful business. That is why obtaining the right builder’s insurance should be at the top of your agenda. It is invaluable in providing crucial protection against potential damage so that you can focus on delivering exceptional results without worry.
What is Contractors All Risk Insurance?
Contractors all risk insurance is a type of property insurance that’s main purpose is to provide adequate cover for damage to a property under construction. The policy will typically cover the cost of repairs or replacement of the property in the event of a covered loss. This type of insurance is important for builders, as it can help protect them from financial losses in the event that something goes wrong during construction.
There are a few things to keep in mind when looking for this kind of insurance. Firstly, the policy should cover both the structure and the contents of the property should either face damage. It’s also important to make sure that you also have coverage to protect against other potential risks such as including fire, theft, and vandalism.
How Does Insurance Protect Your Business?
Builder’s all risk insurance provides coverage for property damage as well as to a builder’s tools, materials, and equipment while on the job site. This insurance can help protect your business from significant financial losses.
What are the benefits of Insurance?
There are a few key benefits of Insurance that are worth mentioning.
- As already mentioned above, contractors all risk insurance provides coverage can help protect your business from financial losses in the event that the property or construction project is damaged or destroyed. This can be a huge help if your business is reliant on the completion of a construction project, as you won’t have to worry about losing money if something goes wrong.
- As well as property damage a builder’s risk policy can also provide cover to stolen or damaged tools and equipment on site.
- It is also vital to have a to ensure those working on site as well as members of the public are protected in the unlikely event of an accident on your building site, so you will need additional coverage over and above contractors all risk insurance.
- If you have a vehicle then it can also be extended to include the relevant car insurance.
- Insurance can also help protect you from legal costs related to construction accidents or injuries. This can be a critical safeguard if you are at all worried about being held liable for damages that occur during the construction process.
- Having adequate insurance can also help you secure financing for your construction project. This is because many lenders will require proof of contractors all risk insurance before they will agree to finance your project. By having this insurance in place, you can show potential lenders that you are taking steps to protect your investment.
How much does contractors all risk insurance cost?
The cost of contractors all risk insurance can vary like most types of insurance and is dependent on a large number of variables, including:
- size of the construction project
- the location of the project
- the builder’s experience and credit history
- any additional coverage included.
As mentioned, the main purpose of contractors all risk insurance is to protect the builder from financial losses in the event that a property is damaged or destroyed during construction. Some common perils that are covered by contractors all risk insurance include fire, storm damage, theft, and vandalism. Builders can also purchase coverage for specific risks like collapse or accidental water damage.
Contractors all risk insurance is typically purchased in addition to standard property and business insurance policies. However, it is important to note that you should always talk to a broker to understand exactly what insurances you should have in place to ensure you are covered and protected. It is often packaged up alongside things like liability insurance and car insurance to provide comprehensive business insurance coverage.
How can you get a quote for contractors all risk insurance policy?
Contractors all risk insurance is a type of property insurance is typically a short-term policy, lasting from one to 12 months and will be taken out on a project by project basis alongside additional types of cover mentioned above.
Getting a quote for contractors all risk insurance is easy. You can either call an insurance broker or go online to an insurance company’s website (such as this one!). When you get a quote, be sure to disclose as much information as possible about your building company, the project you are working on and the financials involved.
This will ensure that you have the correct coverage, ensuring loss provision and that you also have things like employers liability in place. Your broker is the best person to advise on all of this and they will outline the insurance that you must have alongside other types of products that you may wish to consider (for example, insurance to cover for construction delays).
The more information you disclose the more suited the level of cover you will receive. Hiding information in a bid to gain a lower cost policy could come to bite you in the backside later if things like legal fees aren’t included for example, or the coverage limits aren’t the right amount for your project.
We have unfortunately seen instances in the construction industry where the contractors all risk insurance cover hasn’t been adequate or details have been omitted and therefore claims refused. It is in your financial interest to be up front with your insurance broker. But no need to worry, working with someone like construction insure, means that they have the knowledge and experience to ask all of the right questions to make sure you get the right builder’s risk policy at the best price on the market.
So if you are looking to start a new construction project and need contractors all risk insurance in place then speak to Construction Insure today to find out how we can make sure you have the right contractors all risk insurance cover in place that will protect you, your tools, equipment, project and of course staff.