Barkers offer a wide range of insurance cover. Not only do we handle your typical, car and household cover, but we manage an array of commercial insurance products for businesses. In the upcoming mailers, we are excited to be showcasing various Barker Insurance products. This month’s newsletter looks at Contractors All Risk and Liability cover: What it is, what it covers and what kind of businesses or individuals generally require this cover.
What is Contractors' All Risks (CAR) Insurance?
Contractors' All Risks (CAR) insurance is a non-standard insurance policy that provides coverage for property damage and third-party injury or damage claims on construction projects. Damage to property can include improper construction of structures, damage incurred during a renovation, and damage to temporary work erected on-site. Third parties may also become injured while working on the construction site. Contractors’ All Risk insurance not only covers those associated risks but integrates each of the above-mentioned risks into a common policy designed to cover the gap between exclusions that would otherwise exist if using separate policies.
Builders, project managers, shop-fitters, carpenters, electricians, plumbers, tiling contractors and developers, can purchase a policy for Contract Works. This policy includes liability insurance for loss or damage occurring on a building site and accidental damage, death or injury to third parties as a result of such works. Contractors’ All Risks insurance can include cover for own plant, hired-in plant and employees’ tools. Further to this, individuals in their personal capacity can take out Contractors’ All Risks insurance cover when building their dream home.
Contractors’ All Risks insurance policies can either be taken out as once-off policies for a specific project or an annual policy for business/contractors that manage multiple contracts per annum. The policy covers the principal policyholder, the main contractor, along with subcontractors.
There are three sections to the Contractors All Risks Policy:
Contract Works Section
This covers contract materials intended to be incorporated into the contract such as:
- loading, transit and offloading,
- storage on the contract site,
- during the erection period until handover or practical completion,
- consequential loss of defective workmanship or design, and
- the maintenance period.
Surrounding Property
Cover applies to:
- the contractor/subcontractor,
- the extent that the property must be in their care, custody and control,
- damage arising out of the performance of the Insured Contract, and
- property belonging to the principal.
Cover does not include construction plant, machinery and equipment or any work done on existing structures.
Public Liability Insurance
This covers the cost that the insured will become legally liable to pay arising out of/in connection with:
- accidental death or bodily injury to third party or
- accidental damage to third party property.
Should you need further information regarding this cover, please contact your Barker Insurance Commercial Consultant.