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A Guide to Contractors All Risks Insurance

A Guide To Contractors All Risks Insurance

In our article Building Contractors: Is insufficient insurance cover putting your business at risk? we talked about the potential risks that building contractors need to insure against. The good news is there is a specific insurance we can advise you about that’s designed to protect your business from these risks.

What is contractors all risks insurance?

Contractors All Risks insurance provides cover against damage or destruction that occurs during ongoing works because of incidents such as fire, flood, storm, vandalism or theft. This can be for projects for extensions, alterations, new builds or renovations. Costs covered include materials, tools and labour. Its purpose is to enable the policy holder to make good, to return the works to the stage they had reached before the damage or destruction was done.

This specialist type of insurance benefits developers, carpenters, electricians and a range of other construction businesses.

What should you insure?

Your insurance should be comprehensive enough to meet the needs of your business and not leave you unprotected in key areas of risk. It should also be flexible enough to provide cover where needed but not include anything unnecessary, which just means additional cost.

Out experience of insuring building contractors has helped us to identify a number of areas worth considering for insurance cover to protect your business during a project:

Workers

  • Bona Fide Sub Contractors: Keeping in mind their charge based on contract price.
  • Direct employees’ wages: Protection for both office clerical and manual trade workers employed directly by your company.
  • Labour-only, sub-contractor payments: Costs associated with their pay and taxes to be covered.
  • Employer’s liability: For cover against injury to employees and labour only sub-contractors.

Works

  • Public Liability: For cover against damage or injury to third parties or their property resulting from your actions.
  • Heat work: Relating to work with heat guns, blow torches, soldering and oxyacetylene equipment.

Equipment

  • Hired-in plant: Self-explanatory, providing cover for valuable plant kept on your site.
  • Continuing hiring charges: Cover in the event of a loss when the supplier continues to charge for the hire of the plant even though it is not in your possession.
  • Own plant: Provides cover for your own plant, tools and equipment from theft, fire, water and damage.
  • Employees tools and effects: Again, self-explanatory.

Materials

  • Goods in transit: Covering materials in transit from the wholesaler to site in your vehicle.
  • Offsite Storage: The protection of other materials bought in for the project but in storage at your depot.

Keeping your business safe

Covering the unforeseen additional costs of repairing, replacing or reinstating work or equipment could wipe out your profit for a project and even put at risk your business’s ability to continue trading. At Glowsure we understand the importance of contractor all risk insurance and how it can provide a lifeline to your business in the worst case scenario.

Speaking with our team of experts will give you peace of mind that you have the right cover for your business. And that’s one thing less for you to worry about! A conversation and a quote costs you nothing but could save you a fortune. Contact us on 01730 239387 or send us a message.

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