There are many risks that could lead to potential expensive costs arising out of the execution of construction projects; that’s why choosing & having the right insurance covers in place is crucial. 

The insurance can be arranged for a specific project in the name of the Contractor/Employer, or on an annual basis covering multiple projects by the same parties at various stages of completion.  

Both solutions can also provide the opportunity to include additional heads of cover. 

Let’s look at what these cover, who exactly needs this and why it’s not to be overlooked. 

  

What is contractors all risk insurance? 

Contractors All Risk Insurance (CAR) essentially provides peace of mind to those involved in construction projects. CAR Insurance plays an important part for many construction projects as it provides financial security and coverage against an array of risks and unforeseen events.  

From losses arising from storm & flood, fire, collapse, theft and malicious damage, CAR insurance can protect property and construction sites against each of these and much more.  

Essentially most contractors all risk policies are arranged on an ‘all risks’ basis – put another way – it’s covered unless it’s excluded. 

Contractors plant & equipment is also at risk of loss or damage. Some of it will not come as a surprise, such as theft & malicious damage, but other causes of losses occur as well including accidental damage from overturning, collision or arising out of poorly planned or managed crane lifts.  

Construction equipment is of course essential for carrying out the work but can be very expensive and can take time to replace, especially if it’s a specialist piece required which has been damaged or stolen. 

There are additional heads of cover which can be placed with the CAR Insurance; let’s take a look at them: 

·       Contractors Plant & Equipment Annual or Project

·       Hired in Plant & Equipment Annual or Project  

·       Existing Property Annual or Project                           

·       Public Liability Annual or Project 

·       Delay in Start-up Project only by Employer/Principal 

Employers Liability insurance is also viewed as an associated cover. This is placed on an annual basis normally with the Public Liability. 

  

Who needs contractors all risk insurance? 

CAR insurance gives extensive financial protection to many different parties involved in construction projects; by having this protection in place, it can save hundreds of thousands of pounds, sometimes more. Don’t be exposed and leave it to chance. 

Now we know what it is, let’s look at exactly who needs contractors all risk insurance.  

Contractors and Subcontractors 

Contractors and subcontractors are generally responsible for loss or damage to their contract works both during the construction and maintenance periods. They are responsible for repairing or reinstating them in the event of loss or damage. Therefore, CAR insurance is extremely beneficial to them. 

Project Owners and Developers  

Owners and developers of construction projects need CAR insurance to safeguard their investments. This ensures the project remains financially viable in case of loss or damage during construction. 

Construction Managers 

Individuals or firms responsible for overseeing construction projects benefit from CAR insurance to protect against risks that could disrupt the project timeline.  

Lenders and Financial Institutions 

Banks and other financial institutions who finance construction projects often require that CAR insurance is in place. By having their interest adequately catered for, within the arranged policy, ensures their investment is secured against potential risks. 

  

Choosing the right CAR insurance policy 

Choosing the right policy for any insurance cover is important. There are many factors to consider such as costs, what’s included and what’s not included, as well as policy terms and conditions together with the insurer’s reputation, service and claims paying ability. 

At 538 Underwriting, we offer tailored CAR insurance solutions to those working on construction projects. 

Our policy meets and addresses many of the insurance requirements & risks that our clients may face during the period of the project as well as maintenance periods. 

This can be written on either an Annual CAR or Project CAR specific basis. 

Here are just some of the key policy covers that we provide: 

·                Contractors All Risks 

·                Contractors Plant & equipment  

·                Existing structures 

·                Delay in start-up (Project only) 

·                DE4 (95) Defects exclusion as standard 

·                Testing & commissioning periods 

·                Maintenance periods 

·                Public Liability (Project only) 

Our underwriters have extensive experience when it comes to delivering tailored insurance solutions. 

  

What industries does our CAR insurance policy cover? 

CAR insurance is beneficial to a wide range of industries. 

Fortunately, our risk appetite is broad and is useful to many prospective Contractors or Employers for their construction projects in various industries.  

Have a closer look at our appetite to see how we can help you. 

Our UK Projects CAR appetite includes the following: 

·                Residential 

·                Commercial  

·                Industrial 

·                Hospitality 

·                Retail 

·                Leisure 

·                Education 

Our Annual CAR appetite includes the following: 

·                Residential 

·                Commercial  

·                Industrial 

·                Light Civils 

·                General Builders 

·                Mechanical & Electrical 

·                Renovation Contractors 

·                Specialist Installation Contractors for over 120 trades 

So, it’s clear contractors all risk insurance shouldn’t be overlooked. As a financial security net, it’s a policy that provides peace of mind to many involved in construction projects. 

  

The importance of CAR insurance 

 We strongly recommend that you do not leave your Construction Insurance needs to chance!   

Engage with a Broking House whom you know, or you can ascertain that would deal with Construction Insurance in line with your actual needs.  

Checking their website would be a great start to confirm this. 

  

There are many excellent and respected professional Brokers who would trust and endorse our team here at 538 Underwriting to provide that bespoke solution for you. 

If you’re looking for a tailored CAR insurance policy you are in the right place. Our team of experienced underwriters are here to help for both Project and Annual business. 

Get in touch with us for more information. 

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