Contractors All Risk Insurance

Contractors all Risk insurance is a terminology that is often got wrong by many brokers etc who are not up to speed on what insurances certain contractors should be taking out.

It is essential to have this cover in place if you are a building contractor or a developer.

Contractors All Risk Insurance covers you for the structure that is currently being worked upon if it is an extension of the current structure or if you are building a new build it will cover that structure from start to finish.

Unlike a standard Public Liability policy which will only cover tradesman for damage caused tothird-party premises (existing structure) Contractors All Risk Insurance will cover any damage caused to the building works, for example if there is an unexpected flood, storm, or fire, it will even cover for poor workmanship.

Why do I need Contractors All Risk Insurance

If a Building Contractor held only a Public Liability insurance policy and there was a fire, causing serious, if not fatal damage to the work outside of the original structure, then the insured would not be covered and may even be forced into liquidation. Yet, if the insured had taken out a Contractors All Risk policy, or a contract works insurance or a Contractors Combined insurance, then they would have been covered, as mentioned in their contract works section. Moreover, Contractors All Risk Insurance (in contrast to regular Public Liability Insurance) also includes cover for future claims made about work previously carried out by the insured.