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Who needs Contractor's All Risk Insurance? Explained 1O1

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Who needs contractor's all risk insurance?

Contractor's all risk insurance is commonly purchased by any business working within the construction sector, ranging from building contractors, engineering firms to project managers.

Contractor's all risk insurance (otherwise known as CAR insurance) offers a diverse range of covers tailored to the construction industry to offer protection from property damage, bodily injury and third-party claims.

Who needs contractor's all risk insurance will depend upon your contractual requirements and legal obligations. Working with a construction insurance broker can assist with identifying the most suitable cover to meet your needs.

Contractor's all risk insurance requirements

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 under a contractor’s all risk insurance policy.

JCT contracts are the mostly commonly used in the UK and will identify what contractor's all risk insurance covers you potentially require. However, it's worth considering there are additional contractor's all risk covers available.

Contractor’s all risk insurance policies can be structured to ensure all parties are covered on a project, regardless of the damage or injury, or who was a fault. Talk with a specialist construction insurance broker about your project needs by contacting us on 0345 625 0711. 

Who needs contractors all risk insurance by risk?

Lower risk contractor activities

Air Conditioning, Acoustic Engineer, Bricklayers, Carpenters, Cavity Wall Insulators, Ceiling Contractors, Chimney Sweeps & Repairs, Conservatory Erection, Construction Site Logistics, Damp Proofing, Electrical Contractors, Flooring Contractors, General Builders, Glass Contractors, Groundworkers, Haulage Contractors, Heating & Ventilation Contractors, Installation Contractors, Insulation Contractors, Landscape Gardeners, Loft Conversion Contractors, Paving Contractors, Pipe Fitters, Plant Hire, Plastering & Drylining, Plumbers, Road Surfacing, Shop & Office Fitters, Site Clearance Contractors, Stonemasons, Tilers, Utility Contractor


Medium to high-risk contractor activities

Aerial Erectors, Basement Contractors, CCTV & Alarm Installers, Cladding Contractors, Concrete Finishers, Concrete Pumps, Curtain Walling, Diamond Drillers, Formwork & Shuttering, Guttering, Lift Engineers, Reinforced Concrete Contractors, Roofers (incidental), Soft Strip Contractors, Solar Panel, Telegraph Pole & Street Light Installers, Tree Felling & Lopping, Underpinning, Water Treatment Contractors


Very high-risk contractor activities

Asbestos Removal, Demolition, Forestry Contractors, Red Zone Rail Works, Roofers, Scaffolders, Steel Erection, Steel Fabrication, Steeplejacks, Piling, Tunnelling, Work involving Bridges & Viaducts

What contractor's all risk insurance do you need?

Contractor's all risk insurance offers a range of covers under one product that can be selected to meet your individual needs. 


Contract Works Insurance

Public Liability Insurance

Product Liability Insurance

 Employers Liability Insurance

Own Plant and Equipment

Hired-in Plant and Equipment

Employee Tools Insurance

Non-negligence Insurance

Business Interruption

Personal Accident Insurance

Terrorism Insurance

Legal Expenses Insurance


Do you need an annual contractor's all risk insurance policy or project specific?

Contract works insurance under a contractor's all risk policy will typically be purchased on an annual basis by the respective parties, for their own needs.

An annual contract works policy will cover all work undertaken in that year, up to a maximum contract value per project. This is usually the most cost-effective solution for contractors who typically undertake multiple projects each year.

Larger projects may prefer to arrange their contractor's all risk insurance for all parties on a project specific basis. However, issues can arise if there are delays in construction and this extends past the agreed policy period.

It is also worth considering that business insurance such as professional indemnity and employers liability will most likely need to be arranged an annual basis as well.


Contractor's All Risk Explained posted by Get Indemnity™ 

This guide is for information purposes and based on sources 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.