Contractors All Risks Insurance

Contractors All Risks Insurance policy does cover all risks associated normally with a construction project. The policy provides coverage for both damage to a property and third-party injury or damage claims. The main purpose of the work being carried out is the construction of buildings or other structures. This includes building related trades such as roofing foundations and repair/alteration work. Associated plant and machinery work are included in the policy (e.g. lifts or boiler installations as part of new building construction).

While breakdown during testing is provided under the policy, this is a small element of the risk. If a longer period of cover is required, the risk should be covered under an EAR policy. Where the contractor is constructing buildings without a contract with a view to selling (speculative building), the buildings are covered following completion for a period of 90 days for commercial buildings and 180 days for a domestic building. Overall, the main risks are from environmental perils fire and theft, with limited exposure to testing or commissioning losses