What is contractor all risk insurance?
Contractors all risk insurance is a specialised policy designed to protect contractors and construction businesses against a broad range of risks. It covers both property damage and third-party liability, ensuring that your projects and business operations are safeguarded.
Whether you’re managing a small renovation or a large-scale construction project, this insurance provides peace of mind by mitigating financial losses caused by accidents, errors, or external factors.
Contractors all risk insurance explained
Think of contractors all risk insurance as an all-in-one safety net. It not only protects your physical assets like tools, materials, and plant equipment but also covers third-party liability and unforeseen project-related damages.
This policy is especially beneficial for businesses handling multiple projects or those that frequently work on high-value contracts. It’s designed to minimise financial disruptions, allowing you to focus on what matters—completing the project.
Contractor all risk insurance: what does it cover?
Contractors all risk insurance typically consists of the following essential covers:
Public liability
Public liability insurance covers you against claims from third parties for property damage or personal injury caused by your business operations. For example, if a passerby trips over equipment at your site, public liability covers the legal fees and compensation.
Professional indemnity
Professional indemnity insurance covers claims arising from professional errors or negligence in your work, such as design flaws or inaccurate specifications. This is particularly important for contractors involved in planning or consultancy.
Employers’ liability
Employers' liability insurance is a legal requirement if you have staff, this covers claims made by employees for workplace injuries or illnesses, such as repetitive strain injuries or accidents on-site.
Tools & materials
Protects your tools, equipment, and construction materials against theft, loss, or damage. Whether your drill is stolen from a van or materials are ruined by bad weather, this coverage ensures you’re not left out of pocket.
Owned & hired plant
Plant and machinery insurance covers repair or replacement costs for owned or hired-in machinery and equipment. For instance, if a hired digger is damaged on-site, this insurance saves you from hefty repair bills.
Commercial legal expenses
Commercial legal expenses provides cover for legal costs associated with disputes, including contract issues, tax investigations, or employment claims. This is invaluable for resolving issues without draining your financial resources.
