Does Contractor’s All Risks Insurance Cover Theft, Fire, Flood or Vandalism?

Last updated: 23/01/2025

Tradesmen and women are the backbone of the UK's construction industry, taking on diverse projects ranging from small-scale renovations to large commercial constructions. They face a multitude of risks, including theft, fire, flood, and vandalism. Unforeseen events such as these can significantly impact construction projects, leading to financial setbacks and delays.

In this article, we take a look at Contractor's All Risks Insurance, exploring exactly what it covers, the benefits of the policy , how it differs from Public Liability Insurance and the impacts theft, fire, flood, and vandalism have on the policy.

Understanding Contractor's All Risks Insurance

Contractor's All Risks Insurance serves as a comprehensive protection plan for construction professionals such as electricians, plumbers, carpenters and builders, offering cover against various risks that can arise during the course of their projects. To put it simply, Contractors All Risks Insurance guards against loss on a construction project or site, as well as any physical damage to it. This can cover harm to the physical structure or any additions that are being built on the original building, as well as any equipment, supplies, or machinery that are brought in to help with the project.

What Is Included In This Cover With Rhino Trade Insurance?

With Rhino, the following losses or damages could be covered under a policy tailored to your business’s needs:

• The contract works that are currently being built, such as any temporary structures, partially finished buildings, or building supplies.
• Any machinery or plant used in construction that are owned by the insured.
• Any plant or machinery that the insured hires.
• Any equipment and personal belongings that employees of the insured have on-site.

Does Contractor's All Risks Insurance cover theft, fire, flood or vandalism?

From time to time, uncontrollable situations can arise when operating in the trades which is why it is vital you have the correct insurance policies in place to help protect your business.

Rhino's Contractors All Risks Insurance includes cover for the following:

• Theft of machinery, equipment, and construction plant whilst they are on the job site.
• Flood damage that affects partially finished projects, as well as any construction plant, tools, machinery, or equipment.
• Fires that destroy or damage any supplies, equipment, machinery, tools, or partially finished contracts.
• Financial loss brought on by an adverse event such as a fire, floods, theft, vandalism, or damage.

Coverage Against Theft

Theft can occur at any stage of a construction project, whether it is the theft of tools and equipment or building materials being stolen whilst they are stored on site, Contractor's All Risks Insurance can cover the losses incurred due to theft, ensuring that tradespeople can replace stolen items without having to bear the full financial burden. This cover not only protects a business’ investments but also allows them to maintain their productivity and meet project deadlines without significant disruptions.

Protection Against Fire Damage

A fire breaking out can wreak havoc on construction sites, causing extensive damage to structures, materials, and equipment, potentially stopping a contract in its tracks. Contractor's All Risks Insurance provides vital protection against fire-related losses, enabling tradespeople to rebuild and replace what was lost. This cover is indispensable, offering financial relief during a time of crisis and allowing construction projects to resume promptly.

Safeguarding Against Flood Damage

In the UK, unpredictable weather patterns can lead to flooding, which can massively effect construction projects. Floodwater can damage foundations, structures, and materials, leading to costly repairs and project delays. Contractor's All Risks Insurance includes cover for flood damage, ensuring that tradespeople do not bear the brunt of natural disasters. With the financial support provided by the insurance policy, they can swiftly address flood-related issues and continue their work without prolonged interruptions.

Defending Against Vandalism

Vandalism is another unfortunate reality faced by tradespeople, with vandals causing deliberate damage to construction sites, equipment, and materials. Such acts can result in substantial financial losses and project setbacks, as materials might need replacing, or equipment might need repairing before work can continue. Fortunately, Contractor's All Risks Insurance with Rhino Trade Insurance covers vandalism, offering a safety net that protects tradespeople from the financial consequences of vandalism. This cover allows tradespeople to focus on completing their projects without undue stress or financial strain.

Do I Need Contractor's All Risks Insurance If I Have Public Liability Insurance?

Short answer: yes, you do.

Long answer: These two policies are not the same thing at all. Businesses can be shielded from the financial burden and potential legal liability of third-party injuries and property damage by purchasing Public Liability Insurance from Rhino. You would make a claim on your Public Liability Insurance to reimburse the related expenses if a client or member of the public made a claim against your trade business for any injuries to a member of the public, or third party property damage.

The purpose of Contractors All Risks Insurance is to provide insurance for contract work before it is finished, or to cover any owned or hired plant or machinery. It's important to keep in mind that Public Liability Insurance does not cover partially completed projects, tools, or supplies. For this reason, Contractor's All Risks Insurance is crucial for both construction contractors and their clients.

Contractors would require Public Liability Insurance at a minimum, Employer's Liability Insurance if they employed anyone (more on what happens if you don't have Employers Liability Insurance here), and Contractors All Risks Insurance as an additional insurance to get fully comprehensive protection.

We go into more detail about the differences between Public Liability Insurance and Contractors All Risks insurance here.

Why Get Your Contractor's All Risks Insurance With Rhino?

For tradespeople, Contractor's All Risks Insurance serves as a vital insurance policy, offering comprehensive cover against theft, fire, flood, vandalism, and a range of other risks. This insurance policy not only protects a business’ investments but also provides peace of mind, allowing them to focus on their craft without the worry of potential financial setbacks.

As the construction industry continues to thrive, it is essential for tradespeople to invest in the right insurance protection. Fortunately for you, Rhino Trade Insurance has your back. Give us a call on 0116 243 7904 to discuss a quote for your business or make your own bespoke quote online.