Contractors ‘All Risks’ Insurance (CAR)

What is contractors all risk insurance

Construction projects come with many risks and as contractor it is essential that you obtain the appropriate insurance to protect you – should the unexpected happen.

Contractors’ all risk insurance also known as Construction Insurance or Contract Works insurance provides coverage for accidental physical loss or damage that occurs to a property insured during the construction period. It covers the contract works undertaken by the contractor and sub-contractors for the project duration and is designed to offer you the protection you need for the physical works, drawings, temporary buildings, tools, plant and equipment that you may be using on your construction site to get the job done timely.

Cover is usually on an all-risks basis and for the construction of all types of civil engineering works and building and includes any works on existing structures (extensions, repair, alteration, or refurbishment) or even new builds.

Cover is for permanent and temporary works, including site materials and policies will be tailored to meet your requirements.

CAR insurance can cover:

• Own plant or hired-in plant
• Contract works
• Public liability
• Employers’ liability
• Privately owned tools or effects
• Structural warranty

Cover can be extended to include extras like non-negligence for damage to neighbouring properties and legal expenses. As a contractor or developer, if you expect to sell the property, usually the buyer’s own insurance provider requires the contractor to have the appropriate insurance in place.

Do I need a contractor’s insurance?

If your work typically involves working on construction sites, then most likely for your peace of mind you need this type of cover.

Construction sites vary but all share a common threat – the risk of loss, theft or damage to property – all which can affect the fulfilment of your obligation to complete the contract timely and could in turn result in financial losses.

Usually, the contractor and employer jointly take out contractors all risk insurance policy and other, but cover can be extended to cover the interest of financiers, subcontractors, contractors, manufacturers, and even suppliers.

Each party included in the policy will retain the right to file a claim against the insurer and all parties are covered without any consideration for the type of damage or the individual who caused the damage and the insurer does not have subrogation rights. As an example, if the contractor causes damage to a building, the employer can recover the funds from the insurer. In such cases, the insurer will not be able to recover any money from the contractor.

Should I take annual or one off/specific project

Cover is varied and can be arranged on an annual basis or one-off, single-period project.

Annual cover – Annual insurance for trades such as general builders, housebuilders, electricians, fit-out contractors, and minor/medium civil engineering contractors.

Most main contractors take out an annual cover as this tends to be cost effective compared to a series of project-specific policies.

One-off project. These can be arranged as Employer (OCIP), or Contractor (CCIP) led programmes. Where the employer is responsible for taking out a Contractor All Risk policy — particularly for large and complex projects — it will purchase a policy on a project-specific basis.

Whether you are looking for an annual policy or one-off cover for a particular project we will help you to fully assess your risk before searching our panel of leading construction insurers to create exactly the right blend of covers for you.

At Eaglemat, we have an in-depth understanding of your sector, offering a selective panel of market-leading insurers and specialist providers. Let us do the hard work for you while you relax. For quote today, just call 0333 355 2761 or fill out the form below, and we will be happy to help.