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WHAT IS CONTRACTORS ALL RISKS INSURANCE?
Contractors All Risks Insurance, also known as Contract Works Insurance, is a very important policy for any building contractor or developer. But this policy can get a little confusing, so Rhino Trade Insurance is here to break it down for you.
In a nutshell, Contractors All Risks Insurance provides protection against the loss of, or any physical damage to, a construction project or site. This includes damage to the actual building or extension under construction and/or any plant, materials and machinery that are on site for the purpose of the construction.
This type of insurance is highly recommended as an upgrade to your standard Public Liability or Employers Liability Policy for anyone in charge of a building project.
CONTRACTORS ALL RISKS COVER SUMMARY
- Peace of mind cover for all builds, extensions, conversions, refurbs, renovations, retrofitting, alterations, repair work and more
- Limits of indemnity protecting builds with a value up to £250K
- Cover for plant and machinery you own
- Cover for plant and machinery you’ve hired
- Cover for employees’ effects and tools
- Instant cover with documents issued immediately
- Monthly or annual payment options
- Available as an add-on to a Rhino Public and Employer’s Liability Policy
Example of Contractors All Risks Insurance
Jason is a self-employed building contractor. His firm has been hired to build an extension on Maria’s house.
While one of Jason’s sub-contractors is working on the site, his mini-digger accidentally knocks down a piece of hoarding, smashing several glass panels and destroying some of the existing build. This sets the project back a week, and leaves Jason’s firm on the hook for the cost of the rebuild and the replacement materials.
Luckily, Jason took out Contractor’ All Risks Insurance with Rhino, so he doesn’t need to tear his hair out (or that of his sub-contractor). He simply needs to contact Rhino to claim the cost of the partially completed build, the glass panels and the lost labour costs.
Thanks to Rhino’s Contractors All Risks Insurance, Jason’s firm doesn’t lose a penny thanks to this unfortunate incident. As there’s no financial loss to her, Maria is happy too.
As you can see by this example, Contractor’s All Risks Insurance is a lifeline for anyone in charge of larger projects and building work. To put it simply, this insurance can be the difference between you being able to continue Business as Usual, or your business having to close down.
This is just one example among thousands. If you’re unsure whether you’d benefit from Contractors All Risks Insurance, give us a call today and discuss your circumstances with the friendly Rhino team.
WHAT DOES CONTRACTORS ALL RISKS INSURANCE COVER?
The Policy will provide cover for loss or damage to:
- The actual contract works that are under construction, including a partially completed building, any temporary building or materials that will be used in the construction.
- Any construction plant, tools, machinery and equipment belonging to the insured.
- Any construction plant, tools, machinery and equipment hired by the insured.
- Any tools and effects on site that belong to employees of the insured, limited to £500 per employee.
Does Contractor’s All Risks Insurance cover theft, fire, flood or vandalism?
Relax, you shouldn’t lose sleep over things beyond your control.
Rhino’s policy covers:
- Theft of construction plant, tools, machinery and equipment.
- Flood damage resulting in damage or loss of construction plant, tools, machinery or equipment, as well as to the partially completed works themselves.
- A fire which causes damage or loss to any materials, tools, machinery, equipment or the partially completed works.
- Loss of finances due to an adverse incident such as fire, flood, bad weather, theft, vandalism or damage.
What projects does Contractors All Risks Insurance cover?
Contractor’s All Risks Insurance has you covered for builds and projects, including the following:
- Extensions – big or small, extensions are significant projects which (depending on the size and scope) usually take around four months to complete. There are plenty of adverse events that can befall your job site during that time, which is why Contactors All Risks cover could save your bacon should anything happen to your site.
- Refurbishment – whatever it is you’re refurbing, you’ll need to set up a temporary job site around the works. From cosmetic work such as painting & decorating to more significant renovation work, Contractors All Risks Insurance will cover you for loss or damage to your existing work or materials.
- Repairs – building and structural repair is many a building contractor’s bread and butter. Repair work means tools, materials and machinery stored on-site, which comes with plenty of risks to these costly items. Whether fire, flood, theft or almost anything else, Contractors All Risks Insurance will cover the cost should damage or loss occur.
- New builds – some contractors specialise in creating new structures for their clients. Again, building from scratch requires a job site to be established around the build, which is vulnerable to damage right up until completion. Contractors All Risks Insurance offers a financial safety net should the build itself or your construction machinery, tools, work equipment or accessories come to any harm.
Contractor’s All Risks Insurance from Rhino Trade Insurance covers you whether your project is:
Domestic – taking place in or around a private customer’s home or premises.
Commercial – business or municipal premises such as schools, offices, retail or leisure facilities.
How much can you claim on Contractor’s All Risks Insurance?
Rhino offers some of the most generous cover limits around, for the best possible price.
Limits of Indemnity start at £10,000 (for the actual contract works) and go up to £250,000, for building contractors undertaking larger builds.
For more information on the specific amounts the Policy will pay out, check out our handy table in the FAQs.
How Much Does Contractors All Risks Insurance Cost?
Just like with all insurance, exact premiums vary depending on factors such as the size of your business, the number of employees and the types of works undertaken. Contractors All Risks Insurance is calculated on a project-by-project basis. Things like your contract value, the type of project undertaken and the security you have in place.
The best way to get an idea of how much you’ll pay is to head over to our quick quote engine, enter a few simple details about your business and you’ll have a personalised quote in seconds.
Do Builders Need Contractors All Risk Insurance?
The short answer is yes. Without it, your business may not survive the costs of rebuilding a job from scratch or replacing costly machinery or materials.
If you’re a builder, contractor or developer, you’re likely to be establishing long-term sites around the property or structure you’re working on. On these sites you’ll have everything from materials for the build, equipment, tools and machinery (whether owned by you or your subcontractors or hired from a third party) – as well as the actual building and project under construction.
These things are all crucial to a job’s completion. Not only this, they’d cost a fortune to replace should anything happen on-site to cause their loss or damage.
As a self-employed builder or contractor, you’re in charge of the project, so anything that happens to the site will be your responsibility to put right. Fire, flood, theft, vandalism or weather damage to a job site would be a financial disaster for your business, which is exactly where Contractors All Risks Insurance comes in.
What Policies Do I Need Alongside Contractor’s All Risks Insurance?
As a self-employed builder, contractor or developer, you should have a full suite of trade insurance policies in place to act as a safety net for if things go wrong – either during the course of a job or in your spare time.
These two are particularly important to have alongside your Contractors All Risks Insurance. With Rhino, we like to make things simple, so you can buy your Contractors All Risks Insurance as an add-on policy alongside these:
This essential cover protects you against the financial implications of accidents, injuries or property damage incurred in the course of your business activities. In a high-risk industry like building and contracting, it doesn’t take a genius to see why this cover is so important.
Employers’ Liability Insurance
This covers you if someone working for you makes a claim against your business for sickness, injury or property damage incurred as a result of working for you. This is a legal requirement in the UK if you hire anyone, so it goes without saying that you should have it.
POTENTIAL CLAIMS
Below are some examples of scenarios that could be covered under a Contractors All Risks Policy:
- An electrical fault causes a fire in the night destroying a partially completed extension to an office block. The Contractors All Risks Policy covers the cost of demolishing and re-building the damaged structure.
- An arsonist breaks into a site setting fire to some roofing materials, the fire also causes damage to a cherry picker that had been stored by the materials and that had been hired in by the insured. The Contractors All Risks policy covers the cost of replacing the roofing materials and cherry picker.
- During some refurbishment works on a home, there is a minor explosion due to an unsafe gas pipe. The existing building and some of the new works are damaged. Contractor’s All Risks Insurance pays for the cost of the repair and rebuild.
- Heavy rainfall causes a job site to become waterlogged, which renders some building materials unusable. Contractors All Risks Insurance cover the cost of the replacement, meaning the firm doesn’t suffer any financial hit.
- A job site is raided by thieves, and tools and personal effects of an employee which were stored on the site are stolen. Contractors All Risks Insurance covers the cost of the replacement tools and belongings for the employee.
What Does Contractors All Risks Insurance Not Cover?
Professional indemnity
Contractors All Risks Insurance doesn’t cover instances where you have caused your customer to lose money due to advice, guidance or designs you’ve given in a professional capacity. You’ll need a separate type of insurance for that – known as Professional Indemnity Insurance. Rhino can sort you out with this cover too, so don’t sweat it.
Cyber insurance
Data breaches, hacks, digital fraud and information loss – none of these things come under your Contractors All Risks policy. You will need a separate policy designed to cover financial loss caused by cyber factors.
Large-scale or long-term projects
The Policy will not cover builds that were originally scheduled to be longer than 2 years or with a contract value exceeding £2M.
Policy docs & useful links
Contractors All Risks Insurance FAQs
This Policy provides cover for contract works that are under construction, plant tools and machinery and any tools and effects on site belonging to employees. This Policy provides building contractors with comprehensive protection at great value.
Contractors All Risks Insurance can be purchased by building contractors directly from Rhino, in addition to Rhino’s industry-leading Public Liability and Employers Liability insurance.
Contractors All Risks Insurance can be purchased by building contractors directly from Rhino, in addition to Rhino’s industry-leading Public Liability and Employers Liability insurance.
The Policy will provide cover for loss or damage to:
Actual contract works that are under construction, including a partially completed building, any temporary buildings or materials that will be used in construction.
Any construction plant, tools, machinery and equipment that belong to you or that you have hired.
Any tools or effects that have been left on site by your employees, limited to £500 per employee.
Actual contract works that are under construction, including a partially completed building, any temporary buildings or materials that will be used in construction.
Any construction plant, tools, machinery and equipment that belong to you or that you have hired.
Any tools or effects that have been left on site by your employees, limited to £500 per employee.
The Excess applicable to each section is as follows:
Contract Works - £500
Construction plant tools, machinery and equipment - £500
Construction plant tools, machinery and equipment hired by the insured - £500
Employees Tools and Effects - £50
Contract Works - £500
Construction plant tools, machinery and equipment - £500
Construction plant tools, machinery and equipment hired by the insured - £500
Employees Tools and Effects - £50
As with any insurance Policy, some exclusions and restrictions apply and we recommend that you read the full Policy terms and conditions before purchasing cover. In particular, the Policy will not cover loss or damage:
To any existing structures and or property that you are working on (unless otherwise agreed).
Due to your wilful act or wilful negligence.
Due to contamination by asbestos or asbestos dust.
Where you are relieved of any responsibility under the terms of your contract.
To mechanically propelled vehicles, other than vehicles designed to operate primarily as tools of trade.
Theft from unattended vehicles away from the assured premises, unless the vehicle is secured with the keys removed from the vehicle or locked in a secure compound or garage.
To any existing structures and or property that you are working on (unless otherwise agreed).
Due to your wilful act or wilful negligence.
Due to contamination by asbestos or asbestos dust.
Where you are relieved of any responsibility under the terms of your contract.
To mechanically propelled vehicles, other than vehicles designed to operate primarily as tools of trade.
Theft from unattended vehicles away from the assured premises, unless the vehicle is secured with the keys removed from the vehicle or locked in a secure compound or garage.
You can choose to pay in full for 12 months or on a rolling monthly payment basis. Rhino doesn’t penalise you for paying monthly with monthly fees, so you can pay however is most convenient for you.
Choose Rhino for your all risk contractors insurance and relax in the knowledge that if something happens to your building project or contracted works, the costs are covered.
Choose Rhino for your all risk contractors insurance and relax in the knowledge that if something happens to your building project or contracted works, the costs are covered.
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