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.
Limits of Indemnity start at £10,000 (for the actual contract works) and go up to £250,000, for building contractors undertaking larger builds.
The Policy will not cover builds that were originally scheduled to be longer than 2 years or with a contract value exceeding £2M.
Below are come 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.
- A cement mixer belonging to the insured is stolen from a building site. The Contractors All Risks Policy covers the cost of replacing the cement mixer.