Contractor's all risk insurance
Cover for a civil construction project while it is being built: damage to the works, to materials and to plant on site, together with liability to the people and property around it.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Physical loss of or damage to the civil works under construction
- Fire, explosion, flood, storm, earthquake and subsidence during the project
- Theft and burglary from the site
- Damage arising from faulty workmanship or material, to the extent the wording allows
- Third-party liability for injury or property damage arising from the works
- Construction plant, machinery, equipment and temporary works, where declared
Key features
- A project-period policy matched to the construction programme, not to a calendar year
- Cover on the full contract value, including materials supplied free by the principal
- Maintenance or defects liability cover extending past completion, where the contract requires it
- Sections for surrounding property, debris removal, professional fees and escalation
- Testing and commissioning cover at the end of the works, where applicable
- Deductibles per event, varying by peril: [DEDUCTIBLE]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us the contract value, the scope and programme of the works, the site and its exposures, and who must be named as insured.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Contractor's all risk insurance: FAQs
Who should buy the policy, the contractor or the owner?
The contract decides. Many projects require the contractor to insure in the joint names of contractor and principal, so both are protected and there is one claim rather than two.
What is the difference between CAR and EAR?
Contractor's all risk is for civil construction, where the value lies in the works being built. Erection all risk is for installing plant and machinery, where the value lies in the equipment being erected and tested.
Does it cover delay to the project?
Not in the base cover. Revenue lost because insured damage delayed the project is covered by advance loss of profit, or delay in start-up cover, arranged separately.
Is the contractor's own plant covered?
Only where it is declared under the plant section, or insured under a separate contractor's plant and machinery policy. The works and the plant that builds them are rated differently.