Contractors All Risks cover is quite wide and like the name suggest covers ‘All-risks’ of damage to the insured works unless caused by an exclusion contained in the policy.
Insured works are the permanent and temporary works that the policyholder will be carrying out for the year when they take out the policy. In most cases these policies are annual and an annual disclosure of the type works / nature / maximum values and turnovers are given to insurers at policy inception.
When you pick a sum insured it should be the maximum value of any contract that will be undertaken. You can also arrange a one-off single contract cover – sometimes done for large projects. Temporary site buildings may be covered as well and you usually need specify a sum insured for these.
Cover on policy stays in force until, in the case of short period policy, the period expires or the cert of completion is issued (whichever is first) and in the case of annual policies cover ceases once the cert of practical completion is issued.
Contractors All Risks policies, where the builder wants to insure their own or hired in plant, can be extended to include loss or damage to this equipment. Its possible to cover off-site storage of tools and equipment and also to cover show house contents.
When cover is given for the contractors plant it is covered on an All Risks basis similar to the works and when arranging the cover, the builder should ensure that the sum insured is adequate to cover replacement of same. Claims on plant can be reduced to take into account wear, tear and betterment.
This covers loss of or damage to contract works and materials.
This covers loss or damage to your own plant including heavy machinery, tools & equipment.
Hired in Plant
This covers loss of or damage to hired in plant. This is particularly important for contractors who hire machinery from plant hire yards and many won’t lease machinery unless you accept full responsibility for theft, loss or damage to the machinery in question.
All Risks on Tools
This covers loss of or damage to hand tools and hand held portable power tools belonging to you and your employees. Please note that not all insurers offer cover for employees’ tools although the majority do.