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Contractors All Risks Insurance protects the physical work you’re building on site, such as an extension to a property, against accidental damage before the job is finished. It also covers hired-in and owned plant machinery, tools, and equipment while on site. Cover starts from £112.00 a year, or £9.33 a month.
WHAT IS CONTRACTORS ALL RISKS INSURANCE?
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 designed for builders and tradespeople taking on contracts where the work itself or the site could be damaged or cause harm before completion, and can be considered 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
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.
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.
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 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 that 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 rebuilding the damaged structure.
- An arsonist breaks into a site, setting fire to some roofing materials. The fire also caused 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 was 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 covers 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.
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Contractors All Risks Insurance FAQs
Contractors All Risks Insurance covers contract works under construction, plant, tools and machinery on site, and employees' tools and effects. It gives building contractors comprehensive protection in a single policy, and can be combined with Rhino's Public Liability and Employers' Liability Insurance.
The policy covers loss or damage to: partially completed contract works, temporary buildings and materials on site; construction plant, tools, machinery and equipment you own or have hired; and employees' tools and effects left on site, up to £500 per employee.
Contract works: £1,000. Construction plant, tools, machinery and equipment (owned or hired): £500. Employees' tools and effects: £50.
The policy does not cover: existing structures you are working on (unless agreed); wilful acts or negligence; asbestos contamination; liability waived under contract terms; mechanically propelled vehicles not used as tools of trade; or theft from an unattended vehicle unless it is locked and secured.
You can pay annually or on a rolling monthly basis.
Yes. The policy covers theft, fire, flood, vandalism and bad weather — including damage or loss to construction plant, tools, machinery, equipment and the partially completed works themselves.
The policy covers extensions, refurbishments, repairs and new builds, on both domestic and commercial premises. It protects the partially completed works, materials, tools and machinery on site for the duration of the project.
Limits of indemnity start at £10,000 for contract works and go up to £250,000 for larger builds.
If you are establishing a site with materials, tools, machinery and work in progress, you need it. Fire, flood, theft or vandalism on site would be a significant financial loss, Contractors All Risks Insurance covers those costs so your business can recover.
It does not cover professional indemnity claims arising from advice or designs (a separate Professional Indemnity policy is needed), cyber incidents, or projects originally scheduled to exceed 2 years or £2 million in contract value.
It is most relevant for builders and contractors on new builds or larger renovation projects, principal contractors, and tradespeople whose clients require contract works cover before work starts on site.
The terms are often used interchangeably, but they are not identical. Contract Works Insurance covers damage to the work in progress, such as a fire in a partially built new-build house. Contractors All Risks Insurance is broader and typically includes contract works cover, protection for hired-in or owned plant machinery, and cover for tools & effects on site in a single policy.
For smaller domestic projects, Public Liability Insurance may be sufficient. For larger projects, or where a client requires contract works cover before you start on site, Contractors All Risks Insurance is the appropriate policy.
