Contractors All Risk Insurance

Whilst contractors’ all risk insurance covers you for damages caused by things that are out of your control, the main purpose of general liability insurance is to cover your business against claims made by members of the public. This could be a claim for injury, property damage or illness caused by your business’ work.

For example, if a member of the public was to be hit by rubble falling from your building site, general liability insurance would cover you against this.

And whilst your general liability insurance would cover damage to a hardwood floor that was caused by an employee dropping some equipment, your contractors’ all risk policy would cover damage to the floor caused by a trespasser.

In short, general liability insurance protects you only against claims made against your business. On the other hand, all risk cover protects you against claims made against your business, damage to the structure itself, and loss, theft or damage of your equipment and building materials.

If you would like contractor’s all risk insurance cover for any temporary site structures, such as huts or storage areas, you should inform us of this when you take out the insurance cover. The temporary site structures and their contents will be covered by your insurance policy, as long as you tell us about them when you purchase the cover.

If you’ve already taken out a contractors’ all risk insurance policy with us and you’ve decided that temporary site structures are needed after the event, just give us a call and we can update your policy.

To discuss exactly what would be covered with a contractors’ all risk insurance policy with a knowledgeable member of our team, give us a call on 0161 928 8804 or send us a message and we will get back to you shortly.

Yes, legal costs for liability claims made against your business are included as a standard option in our contractors’ all risk insurance cover.

In the event of a claim, your contractor’s all risk policy will offer you access to sound legal advice in a range of circumstances. You will be able to obtain expert legal guidance relating to your property, employment, any contract disputes, and a variety of other legal issues.

How we calculate the cost of your contractors’ all-risk insurance policy will depend on a number of factors. These include the scope, location, value and duration of your project. Here are some of the factors that will influence the cost of your policy:

• The nature and size of your project. This will indicate the level of risk that is posed, as large-scale construction projects typically carry an increased amount of risk.
• The distribution of turnover and wages between various construction activities and the perceived risk that is attached to each of these can impact your insurance premium.
• Working at height (more than 6 meters above floor level).
• Making excavations.
• Working with heat.
• Using industrial machinery.
• Having made several large claims previously with a lack of remedial action. This indicates that risks are not being properly managed and will inevitably affect your insurance cost significantly.

Other than employers’ liability insurance, it’s not actually mandatory by law to have contractors’ insurance. However, just because it isn’t a legal requirement doesn’t mean it’s not necessary to have this kind of safety net in place for your construction projects.

As you’re aware, there are plenty of risks that come with this line of work, and the last thing anyone wants is to foot the bill for costly repairs and replacements in the event of damage or theft. Why wouldn’t you want the peace of mind of financial protection?

Not only does having contractors’ all risk insurance protect you, but it’s also likely to get you more business. Clients may be unwilling to work with you if you don’t have the security of a CAR policy, even if it’s not technically a contractual obligation.

Many parties that you’ll be working with are likely to request proof of your insurance status before agreeing to a contract, so it’s best to be prepared for all eventualities. This level of professionalism can also help to boost your reputation as a reliable contractor.

The payment terms for your contractors’ all risk insurance policy will depend on your individual contract. There are different types available according to the coverage you need, whether that’s an annual policy or a separate policy for a specific project.

You can purchase annual contractors’ all risk insurance on a yearly basis to cover all work that you undertake during that year, with a maximum value per project. This is usually the easiest solution for contractors who work on multiple projects every year.

Alternatively, project-specific contractors’ all risk insurance might be the better option for a larger-scale venture, especially if it involves multiple parties that need to be named on a joint policy. The only issue is that these tend to have a limited timeframe.

In some cases, it may be possible to extend your coverage if the project overruns past its original deadline. Whichever approach you take, you must always set up contractors’ all risk insurance before any work commences, to avoid issues with claims.

As explained above, there are generally several elements of construction works that this type of insurance covers. That said, these aren’t always included as standard, so you may have to request some amendments before you’re happy with the extent of your CAR policy.

If the contract you’re offered doesn’t include the following, and you believe you may need them, you might want to ask your insurer to add any of these things to your suggested cover:

• Temporary buildings
• Onsite storage
• Engineer fees
• Restoration of plans/drawings
• Demolition/removal of debris
• Overtime work/holidays
• Surrounding property
• Equipment during transit
• Commercial legal expenses

These extras aren’t guaranteed, as it depends on your provider’s risk assessment, and usually means extending claim limits. Additional cover also means additional costs, resulting in higher premiums.