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Contractors All Risks
What is Contractors' All Risk Insurance?
Contractors’ All Risks (CAR) insurance provides comprehensive coverage for building and civil engineering contractors, protecting against a wide range of risks associated with construction projects.
What are the coverage areas?
This insurance typically covers damage to the construction works, equipment, and third-party claims for injury or property damage. It’s designed to protect contractors, subcontractors, and employers involved in a project, ensuring financial security against unforeseen events such as accidental damage, theft, or legal liability.
- Covers the cost of repair or replacement if the ongoing work or part of a construction project is damaged or destroyed by an insured event, such as fire, theft, flood, vandalism, or storm.
- For example, if a building under construction is damaged by a storm, CAR insurance would cover the rebuilding costs.
- Provides cover for owned or hired plant and machinery used on the construction site. This can include cranes, diggers, and other heavy equipment, protecting against damage or theft.
- For hired equipment, the insurance also covers the costs that the contractor would be liable to pay under the hire agreement if the machinery is damaged or lost.
- Protects construction materials and tools on-site, in transit, or temporarily stored, covering damage or loss due to theft, fire, or other insured risks.
- This ensures that materials essential to the project are replaced quickly to avoid delays.
- Covers damage to temporary structures such as site offices, huts, or storage containers used during the construction project. This includes protection against fire, theft, or weather damage.
- Provides cover for legal liabilities arising from third-party injury or property damage caused by construction activities. This can include accidents where a member of the public or a third party is injured on-site or property is damaged due to construction work.
- This type of liability cover is crucial, as claims for personal injury or property damage can be significant.
- Some policies include cover for the tools and personal belongings of employees on the construction site, providing compensation if their tools are lost, damaged, or stolen during the course of work.
- Covers additional professional fees incurred in the process of redesigning or rebuilding works after damage. This includes fees for architects, engineers, or surveyors involved in getting the project back on track after an insured event.
At Sustain we understand the multifaceted insurance needs of the construction industry. Our construction insurance solutions serve to provide you with peace of mind, offering comprehensive protection for all aspects of your business.
Single Project
Our Single Project policy offers project-specific coverage with customised features, ensuring that you're protected throughout the duration of your project and for developers, pending the sale of the properties you have built. Get the right coverage for your project today.
Annual Contractors Combined
Our annual Contractors Combined policy is a comprehensive insurance solution crafted for contractors and property developers. It provides year-round protection for your construction activities, consolidating coverage for various projects into one convenient policy. Whether you're a general contractor, subcontractor, or a specialty trade professional, our policy offers tailored coverage to meet your unique needs. Secure your business and projects with ease by choosing our annual Contractors Combined policy today.
Insurance With A Purpose
Key features:
All-Risks Cover: Unlike policies that list specific perils, CAR insurance provides “all risks” coverage, meaning it covers most types of damage unless explicitly excluded. This broad coverage ensures comprehensive protection.
Contractual Requirement: Many construction contracts require contractors to have CAR insurance in place before work begins. This provides peace of mind to all parties involved in the project, knowing that the site is covered against potential risks.
Joint Coverage: CAR insurance often includes joint coverage for multiple parties involved in the project, including the contractor, subcontractors, and the project owner. This ensures all parties are protected against claims and damage during the construction period.
Continuing Work After Damage: If part of the project is damaged, CAR insurance typically covers the costs to repair or rebuild the damaged section, allowing the construction to continue without significant delays or financial hardship
Benefits:
Financial Protection: CAR insurance ensures that contractors are not left out of pocket if the project is delayed or disrupted due to unforeseen damage or accidents. It covers repair costs, replacement of equipment, and legal liabilities, protecting the financial health of the business.
Minimises Project Delays: With coverage for contract works and materials, CAR insurance ensures that if damage occurs, repairs or replacements can be made swiftly, keeping the project on track and minimising costly delays.
Third-Party Liability Protection: Provides peace of mind by covering legal defence costs and compensation payments for claims made by third parties, which can be significant in cases of serious injury or property damage.
Comprehensive Cover for Multiple Risks: By providing protection for plant, machinery, tools, and ongoing works, CAR insurance offers an all-in-one solution for contractors, simplifying the insurance process and ensuring that all critical aspects of the project are covered.
Ensures Contractual Compliance: Many construction contracts require CAR insurance, and having it in place ensures you meet these legal or contractual obligations, reducing the risk of disputes or delays in project approval.
Key Considerations:
Policy Exclusions: While CAR insurance covers many risks, certain events may be excluded, such as defects in design, poor workmanship, or wear and tear. It’s important to review the exclusions to ensure you are aware of any gaps in cover.
Policy Limits: The policy will have limits on the amount payable for claims, both in total and per individual claim. Ensure these limits are sufficient for the size and scope of your project to avoid underinsurance.
Excess Amounts: Like most insurance policies, CAR insurance includes an excess – the amount you must pay towards any claim. Choose a level that is affordable for your business without exposing you to significant out-of-pocket expenses in the event of a claim.
Subcontractor Coverage: Check whether the policy automatically covers subcontractors or if they need to be added as named insureds. Failure to ensure that all parties involved in the project are covered could lead to claims being denied.
Hired-In Plant Insurance: If you regularly hire machinery or equipment for construction projects, you may want to ensure your policy includes hired-in plant cover, as you could be liable for damage or loss under the hire contract.
Choosing a Contractors All Risk Provider:
Experience with Construction Projects: Choose an insurer with experience in the construction industry and a deep understanding of the risks contractors face. Specialist providers can offer better-tailored policies and more appropriate coverage.
Claims Handling: In construction, time is money, so choose a provider known for swift and fair claims handling to avoid project delays caused by lengthy claims processes.
Customisable Policies: Look for policies that allow you to customise cover based on the specific needs of your projects, such as varying contract sizes, subcontractor involvement, and equipment needs.
Competitive Premiums: While cost is always a factor, ensure you are not sacrificing essential cover for lower premiums. A balance between cost and comprehensive coverage is key to protecting your business.
Speak to our Contractors All Risk
Expert Advisor
We understand the importance of having easy and accessible ways to get in touch with us. That’s why we’re excited to offer you a way to connect directly with our Senior Team quickly and conveniently.
Nicola Wyatt
Senior Insurance Practitioner
