Contractors all risk insurance: What is it and why do you need it?

Construction sites can be dangerous places and the risk of loss or damage to buildings or injury to people can be all too real.

If something happens you need to make sure you’re financially covered to protect the contractor or you as the employer from risks or damages.

This is when contractors all risk insurance comes in.

What is contractors all risk insurance?

Contractors all risk is a non-standard insurance policy that protects contractors and employers from insurance claims for anything that happens while working on-site.

This includes for damage to property and injury to people and can help save on the costs and admin you might face by taking out separate policies.

For example, it could be a claim against you because a structure wasn’t constructed properly or another property was damaged during your construction project.

It could also include an injury claim from a subcontractor who was hurt while working on site. 

Who is contractors all risk insurance for?

This type of policy is usually taken out at the start of the project by both the employer and contractor.

But it’s used by anyone who is working on a construction site.

The policy would cover the employer and contractor, and would also include any subcontractors and other parties involved in the project.

This includes everyone from the site managers to the plumbers and electricians.

In the event of a claim, both the employer and contractor would be able to seek insurance from the policy to help cover any costs.

What can be included in contractor all risk insurance?

Contractors all risk is a comprehensive insurance policy against loss and damage to property or personal injury from work completed on a construction site.

A typical insurance policy will include?

• Protection against personal injury: If a subcontractor makes a claim for injury sustained during a project, your insurance will help cover the costs of any payouts or legal fees. This could include the costs of any medical bills.
• Damage to property: If property is damaged and needs repairs or becomes unusable because of an incident then your all risk insurance will cover the costs of bringing the property back to use.
• Claims after completed projects: If a subcontractor or third party makes a claim for damages caused during a project, after the project is complete, your contractor all risk insurance will help cover the costs incurred for incidents while the policy was active.
• Loss or damage of equipment and materials: If any equipment or machinery is lost or stolen from the site during the construction project, your all risk policy will help provide funds to replace the equipment so the project can continue
• Protection against negligence: If a claim is made against you or a contractor for injury or damages due to negligence then you’ll be able to make a claim to cover any costs

While these are the typical protections included in a policy, contractors all risk insurance essentially covers any risk unless explicitly excluded from the policy when it’s taken out to help protect against any eventuality.

How much will contractors all risk insurance cost?

This will depend on a number of things but most insurers will base the cost for premiums on some typical factors.

• Exposure to risk for each contractor on site
• The nature and size of the largest project you’re working on on-site
• Whether any workers are operating in particularly hazardous areas (for example from a height)
• The frequency and severity of claims you might have made in the past

Finding the right contractors all risk provider

With so much riding on your contractors all risk insurance you want to make sure you’re getting advice from an experienced provider with knowledge of the construction sector.

At ABC+ Warranty we’ve got decades of experience helping contractors secure the right level of cover for themselves and subcontractors on a range of projects.

Get in touch with us for a quote.