FCA authorised · FRN 7249520117 325 0027Quote & buy →
A contractors all risks account is priced on the shape of the work, not just the turnover figure. When we present a risk, these are the factors an underwriter weighs most heavily.
Contractors all risks (CAR) insurance protects the thing every construction project has in common: value sitting exposed on site before it is finished and handed over. That value is the permanent and temporary works themselves, the plant and equipment used to build them, the materials waiting to be installed, and the liability the contractor carries for injury or damage while the build is under way. It is bought because standard property and liability policies do not follow work-in-progress onto a live site, and because contracts — JCT, NEC and bespoke — place a clear obligation on someone to insure the works. Where it goes wrong is rarely the headline peril. It is the sum insured that was never rebased, the indemnity or maintenance period that did not match the programme, the plant hired in but never declared, and the site security condition that was breached the night of a theft. This page sets out how the cover actually works, how underwriters price it, and where finance directors and contract managers most often get caught. Design-and-build contractors that want the market approached by a specialist can start with our PI broking service for design-and-build contractors.
Fire destroys part-built timber-frame or completed works before hand-over — contract works cover responds, subject to any hot-works and fire-precaution conditions.
Storm or flood damages open works or floods a basement dig mid-programme — contract works, with the sum insured needing to reflect the full reinstatement cost including debris removal and re-excavation.
An excavator or generator is stolen from a compound overnight — own or hired-in plant cover responds, subject to the security and immobilisation conditions being met; for hired plant, continuing hire charges may also be claimable.
Tools and materials are taken from a site container or van — tools and materials cover responds, subject to the overnight storage condition.
A member of the public is injured, or a neighbouring property is damaged by site works or a crane movement — public liability responds, subject to policy terms.
An operative is injured on site — employers' liability responds; RIDDOR reporting and a Health and Safety Executive interest are likely on a serious injury.
Water escapes from newly installed pipework and damages the existing building during a fit-out — existing structures and public liability may respond depending on how the loss arises and who owns the building.
Underinsurance on the works. The single most common problem. Sums insured are set at contract price rather than full rebuild-and-reinstate cost, or they are never rebased as material and labour costs move. If the declared value is materially below the true value at risk, the insurer can apply average and cut the settlement proportionally — even on a partial loss. If you are not sure your figures still stand up, use our free underinsurance check before renewal, not after a fire.
The wrong indemnity or maintenance period. A default 12-month cover on an 18-month programme, or a maintenance period that ends before your defects-liability obligation does, leaves value uninsured at exactly the point the contract still holds you responsible.
Breached conditions. Hot-works permits, fire-watch periods, plant immobilisation, key control and overnight storage are conditions, not suggestions. A theft or fire where the required control was not in place can reduce or defeat the claim entirely.
Undeclared activities. Taking on demolition, deeper groundworks, work at greater height, or larger single contracts than declared changes the risk you asked the insurer to price. Undisclosed activity or a material change mid-term can leave a claim outside the terms actually agreed.
Assuming the contract insurance is someone else's job. JCT and NEC forms allocate the insuring obligation explicitly — sometimes to the employer, sometimes to the contractor, sometimes jointly. Insuring the wrong scope, or assuming the other party has it covered, is a live cause of uninsured loss. The policy must be read against the contract, not in isolation.
Hired-in plant gaps. Plant hire agreements pass continuing-hire and damage liability to the hirer. If that plant is not declared on your policy on the terms the hire contract demands, you can be left personally liable for charges and replacement.
Employers' liability is a legal requirement. Under the Employers' Liability (Compulsory Insurance) Act 1969 most employers must hold employers' liability cover for staff, and labour-only sub-contractors are usually treated as employees for this purpose — central on almost every construction site.
Health and safety duties sit alongside the insurance. Duties under the Health and Safety at Work etc. Act 1974, and the site management duties under the Construction (Design and Management) Regulations 2015, do not transfer to an insurer. Good compliance evidence also presents the risk better to underwriters and supports any liability claim.
Working at height and other site controls. Where the work involves height, excavation or lifting operations, the relevant statutory duties and your method statements are both a legal matter and a factor in how liability underwriters view the account.
Fair presentation of the risk. Commercial insureds have a duty to make a fair presentation of the risk to the insurer. Disclosing turnover, activities, largest contracts, sub-contract arrangements and claims accurately is what keeps the policy responsive; a broker's job is to make that presentation properly on your behalf.
Contract-specific insurance clauses. Standard construction contracts contain detailed insurance provisions — who insures the works, the joint-names requirement, the level and the excess. The cover you buy should be checked against those clauses on each significant contract.
Tell us about your business and we’ll place it on the specialist market — or leave your number and a named broker calls you back, usually the same working day.
