Contractors All Risk Insurance Cost in 2025 UK | Do You Also Need a PCC?

Contractors All Risk Insurance Cost in 2025 – What You Need to Know

If you are building a new home or undertaking a development in 2025, Contractors All Risk Insurance is often a requirement. It protects building works, materials, plant and machinery on site against risks such as fire, theft, storm damage and vandalism. Many lenders and clients will insist that it is in place before work begins.

But while Contractors All Risk Insurance covers the project during construction, it does not protect the finished property once it is handed over. That’s where a Professional Consultants Certificate (PCC) or structural warranty becomes essential.

What is Contractors All Risk Insurance?

Contractors All Risk Insurance is a construction policy that covers:

• Works in progress and temporary structures
• Materials, tools and machinery on site
• Hired-in plant and equipment
• Damage caused by unforeseen events such as fire, flood, storm or theft

It is usually arranged by the contractor, but in some cases the property owner or developer may take it out directly.

How Much Does Contractors All Risk Insurance Cost in 2025?

In the UK, the cost of this type of insurance usually falls between 1% and 4% of the total contract value.

The main factors affecting the premium include:

• The contract value and size of the project
• The duration of the build programme
• Location and local risks (for example, flood or theft)
• Contractor’s experience and claims history
• Site security and health & safety measures

Due to rising material and labour costs, premiums in 2025 are generally higher than in previous years. Guidance from the Financial Conduct Authority highlights the importance of choosing regulated insurers when arranging this cover.

Why You May Also Need a PCC or Structural Warranty

While all risks construction cover protects a project during the build, it does not cover defects or failures that might appear after completion. For that reason, lenders and buyers will usually require either:

• A Professional Consultants Certificate (PCC) – often accepted by banks and building societies for lending purposes on new builds.
• A 10- or 12-year structural warranty – which covers major structural defects for up to 12 years after completion.

At ABC+ Warranty, we provide both:

• Professional Consultants Certificates
• Structural Warranties

This means your project can be protected not only while it is under construction but also for many years after it has finished.

FAQs

Is this insurance legally required?

Not always. However, many contracts and lenders make it a condition before work begins.

Can I rely on insurance during construction instead of a PCC or structural warranty?

No. All risks cover only applies while work is ongoing. A PCC or structural warranty is required by lenders for long-term protection once the property is complete.

Can cover be arranged after work has started?

Some insurers allow this, but premiums are usually higher. It is best to arrange protection before construction begins.

Final Thoughts

In 2025, the cost of all risks construction insurance is higher due to rising build costs and stricter underwriting. While it remains a vital safeguard during the build, it is only one part of the picture. To satisfy lenders and protect buyers, a Professional Consultants Certificate or structural warranty is also essential once the property is complete.

If you are starting a project this year, make sure you are protected both during and after construction. Explore our full range of PCCs and structural warranties.