Contractors All Risks Insurance
Who needs Contractors All Risks Insurance?
A Main Contractor / Builder will be generally held responsible for the structure they are building until the building works are completed and handed over to their clients.
In the event of damage to the property they are constructing from the likes of a Fire, Storm, Flood, Malicious damage, Theft the Main Contractor / Builder will be held responsible for making good damage caused by these perils until the property is handed over to their clients
The policy will pay for repair or replacement of the insured works following damage caused by an insured peril.
What does a Contractors All Risk Insurance policy cover?
The cover like the name suggest covers ‘All-risks’ of physical loss of or damage to the insured property (contract works) unless caused by an exclusion contained within the policy.
Insured works are the permanent and temporary works that the builder will be carrying out during the insurance period. In most cases these policies are annual and an annual disclosure of the nature of works including a maximum value any one contract sum insured as well as the projected turnover are given to insurers at policy inception/renewal. The maximum value of any contract sum insured must represent rebuilding/reinstatement costs including professional fees, debris removal, local authority requirements and free issue materials.
Temporary site buildings & Contents therein may be covered under a separate heading and you would need a separate sum insured.
The policy would generally include the Inland transit risk of material coming to site (including loading & unloading) however would not cover materials that are transported by sea or air.
Cover under the 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/the building becomes occupied.
In the event of loss or damage to the works during any maintenance period happening the liability for this is usually covered, subject to a specified time limit, which is normally 12 months.
Loss or damage to Own & Hired in Plant can be covered under the Contractors All Risks policy on site and in transit to and from sites and some policies cover this plant anywhere within the “territorial limits” of the policy for example (anywhere in Ireland or the UK). Often under hiring conditions the hirer will be responsible for loss or damage to the plant hired in and indeed continuing loss of hiring out charges that the company that Plant Hiring Operator would incur when their plant is damaged / destroyed and not being able to hire same. Hired in Plant cover is subject to a max value any one item sum insured so it is important that you understand this limit.
Typical Exclusions in Contractors All Risk policies would be:
• Professional negligence risks
• Loss of Revenue / Consequential loss
• Existing structures
• Cost of repair or rectification due to defective design, plan, specification, materials or workmanship
• Liquidated damages
• Wilful act or neglect
This is a summary document for illustration and guidance purposes only.
Travers & Co. Insurances Ltd accept no responsibility for the contents of this document. Always refer to your specific policy document wording for full cover details a copy of which is available on request.
If you would like a quote for Contractors All Risks insurance call the Commercial Insurance Team on 0402-32204.