Although contractors all risk insurance provides for covers tailored to the construction industry, it is common to purchase in conjunction with a number of additional policies such as: professional indemnity
, D&O insurance
, cyber insurance
and fleet insurance
The construction insurance will pay legal costs incurred in defending allegations and pay damages from any award or settlement. We've produced a guide to offer further information: Who needs Contractor's All Risk Insurance? Explained 1O1
Compare contractors all risk insurance quotes with a specialist construction insurance broker
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Who needs contractors all risk insurance?
Anyone working on site should consider purchasing contractors all risk insurance. Which covers you decide to purchase will depend on a number of factors including your responsibilities, contractual requirements, size and risk appetite.
Your contract with the principle will typically set out the responsibilities of each party, including who is contractually obliged to insure the various elements of the build. Talk to a specialist construction insurance broker about your individual contractors all risk requirements.
Contractors all risk is also commonly referred to as tradesman insurance, the covers available under the policy are the same and will accommodate construction companies with up to 10 employees.
What can contractor's all risks insurance cover?
Below we take a closer look at contractor's all risk insurance covers and consider how they can protect your firm from financial liabilities and property damage:
Contract works insurance
Contract works under contractors all risk insurance will protect the work in progress on a construction site in the event of damage before responsibility has been handed to the principal.
Note if you are working on an existing structure, the existing structure will not be covered and should be insured by the property owner. Contractors all risk insurance will cover any loss or damage to the property and materials.
Public and product liability insurance
and product liability
under contractors all risk insurance protects against claims arising from injury or property damage of persons other than your employees (i.e. customers, suppliers, contractors or third persons) in the course of your construction activities.
Employers liability insurance
under contractors all risk insurance protects against claims arising from injury or illness of your employees. Note all companies under UK law have a legal duty to protect the safety of their employees at work. It is one of the few types of insurance compulsory in the United Kingdom.
Own plant and equipment
Own plant and equipment under contractors all risk insurance protects against damage to own plant and equipment whilst in your custody or control or hired out under a defined agreement. For example: scaffolding, temporary buildings, site office contents and site welfare facilities.
Hired-in plant and equipment
Hired-in plant and equipment under contractors all risk insurance will protect your legal liability under the terms of your hiring agreement to pay compensation for damage to hired-in plant, whilst in your custody or control.
Employee tools insurance
Employee tools under contractors all risk insurance will protect against damage to personal tools and effects belonging to an employee, or principle. Cover can vary from policy to policy, so consider whether you have the protection you need.
Non-negligence, otherwise known as JCT 6.5.1, under contractors all risk insurance protects against claims should there be damage to a neighbouring property due to the works carried out arising from collapse, subsidence, heave, vibration, weakening or removal of support, or lowering of groundwater, which is not the result of negligence.
Business interruption insurance
Business interruption under contractors all risk insurance protects against the loss of income from being unable to trade as a result of an insured event (i.e. property damage). The contractor's all risk cover will protect against the consequential loss of the interruption to trade by indemnifying the policyholder for the loss of income as a result of the insured peril.
Personal accident insurance
Personal accident under contractors all risk insurance will in the event of an accidental bodily injury to any insured person, provide financial support as defined in the policy schedule. Benefits will be payable for death or disablement and related medical expenses.
Terrorism under contractors all risk insurance protects against loss from damage to property and potentially consequential loss resulting from acts of persons which carry out activities directed towards the overthrowing or influencing, by force or violence, of any government.
Legal expenses insurance
under contractors all risk insurance can assist your business with expert legal advice through a telephone legal advice service. In the event of a claim, the contractor's all risk cover will offer access to legal advice in a range of circumstances, typically relating to your property, employment, or contract disputes.
How do insurers calculate your contractors all risk insurance cost?
How insurers calculate your contractors all risk insurance cost will depend on a number of factors, including which insurer we approach on your behalf.
However, there are common areas that underwriters will focus on calculating your contractors all risk insurance cost, as detailed below:
Allocation of turnover and wages between different construction activities and the perceived exposure attaching to each can impact your contractors all risk cost.
Turnover generated and allocation between 1) new build and existing works; 2) residential, commercial and industrial works can impact your contractors all risk cost.
The nature and size of your largest projects, this will indicate the level of exposure posed, large scale construction projects typically carry increased risk.
Details with respect to work at a height of more than 6 meters above floor level, working with heat, making excavations or using industrial machinery.
Frequency and severity of claims with a lack of remedial action, can indicate a lack of risk management and will significantly change your contractors all risk cost.
How to compare contractor all risk insurance quotes?
Contractors all risk insurance policies are complex and difficult to understand, making sure your interests are protected requires a specialist construction insurance broker
who has access to the wholesale market to negotiate cost-effective protection.
To obtain your no-obligation contractors all risk insurance quotes, please complete our digital on-boarding process. Depending upon your risk exposure we can potentially offer quotes within 48 hours or we may require a full submission to present to insurers.
At get indemnity
we maintain the knowledge and expertise to identify a wide range of business insurance
solutions to meet your needs. Talk with a specialist construction insurance broker about your project by contacting us on 0345 625 0711.
This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.