Contractors All Risk Insurance is a comprehensive policy designed to protect construction projects from various risks. It covers accidental physical loss or damage to the works, materials, and equipment on-site during the construction period. This type of insurance is essential for both small and large contractors operating in the UK, including:

Builders,
Electricians,
Plumbers,
Roofers.

It applies to different projects, such as residential, commercial, and renovation works.

FYI, this policy is commonly shortened as CAR insurance, but it is not related to actual cars.

Comprehensive Protection

Covers a broad spectrum of risks associated with works, materials, and equipment used on-site.
Financial Security

Protects your company from financial losses resulting from damages or losses to building works.
Legal Compliance

Helps in meeting the building laws and regulations set by the UK government.
Peace of Mind
Offers assurance to contractors, property owners, and employers during construction projects.
Public Liability
Includes coverage for third-party injury or property damage.
Custom Plans
Can be tailored to specific project needs or provided as an annual policy.

Why Choose Us as Your Contractors All Risk Insurance Provider

At Construction Insure, we offer contractors comprehensive all-risk insurance solutions tailored to their specific needs. Leveraging our 25-year-old industry expertise, we create customised policies that address the unique challenges of your business.

Our commitment to quality is reflected in our partnerships with A+ rated insurers, providing you with the highest level of financial security and protection for your construction projects.

Coverage	Contractors All Risk Insurance	Contractors Combined	Contract Works
Project duration and overall cost	✅	✅	✅
Machinery and materials	✅	✅	❌
Public and employers' liability	✅	✅	❌
Own plant and hired-in plant works	✅	❌	❌
Additional costs and unexpected expenses	✅	❌	❌
Accidental damage due to natural disasters	✅	❌	❌
Protection against theft or vandalism	✅	❌	❌

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" Comparing like with like plus some lower excesses you have managed to save me in excess of £1500 or approximately 15% on my previous insurer. "

- Hew Stevenson

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" We found you to be more thorough, efficient and reasonably priced than our existing insurer. We would not hesitate in recommending you to anyone."

- Zena Nairi LLB (Hons)

Why do I need Contractors All Risk Insurance?

Contractors All Risk Insurance is an essential policy to have in place if you are a building contractor or a developer.

No matter whether you're undertaking an expansion project or constructing a brand-new property, this insurance policy will provide comprehensive protection throughout every stage of the process.

While a traditional Public Liability policy only offers protection against harm to third-party properties, Contractors All Risk Insurance provides broader coverage for builders, shielding them from a range of risks associated with their projects.

This includes damage resulting from unforeseen events like floods, storms, fires, or poor craftsmanship. With this insurance, builders can have confidence in their work and feel secure knowing they have sufficient protection in case something goes awry.

Without a Contractors All Risk Insurance policy, a building contractor may face significant financial consequences in the event of an accident, such as a fire, that causes extensive damage to the work outside of the original structure.

A standard Public Liability insurance policy would not provide coverage for this scenario, potentially putting the project and the company's future at risk. However, with Contractors All Risk Insurance, the insured party would be protected against such risks, providing peace of mind and financial security.

Additionally, this type of insurance policy offers extended coverage for future claims related to work completed by the insured, giving builders even greater protection.

When is Contractors All Risk Insurance required?

CAR insurance is often required by construction contracts (such as JCT or NEC) and by clients or lenders before work commences. It is highly recommended for any contractor or developer wanting to protect against the financial risks of accidental damage or third-party claims during construction.

How does Contractors All Risk Insurance work?

CAR insurance operates by covering the insured against physical loss or damage to the construction works, materials, and equipment during the construction period. In the event of a claim, the policyholder must provide evidence of the loss, after which the insurer assesses the claim and provides compensation based on the policy terms.

How much Contractors All Risk Insurance do I need?

The sum insured should reflect the full replacement cost of the works, including materials, labour, and any associated professional fees. For annual policies, coverage limits should be based on the largest project undertaken during the year.

What is not covered by Contractors All Risk Insurance?

Common exclusions are:

Defective workmanship or design flaws (covered by professional indemnity insurance);
Normal wear and tear, corrosion, or gradual deterioration;
Pre-existing defects or damage before the policy starts;
Loss of profit (unless specifically added);
Penalties, liquidated damages, and contractual fines;
War, terrorism (unless added), and nuclear risks;
Directors’ and officers’ liability, and injuries to employees (unless employers’ liability is included);
Intentional damage caused by the insured or their employees.

Contractors All Risk Insurance

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