Builders & Tradesmen – Why you should have Contractors All Risk (CAR) Insurance Cover?
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Having adequate Insurance cover is very important for your business…
Contractors All Risk Insurance which is also known as Contract Works Insurance is an insurance policy specially designed for builders and tradesmen in the construction industry. Contractors All Risks Insurance can include cover for contract works, own plant, hired-in plant and employee’s tools. The main part of the contractors all risks insurance is the contract works section which provides cover for the property being worked on such as a new house build, new shop units, schools etc. The ‘All Risks’ insurance terminology means that the policy will cover any loss or damage to the property and/or materials other than certain specific exclusions. These specifically excluded covers generally include the existing structure, errors or omissions in design, penalties, damage to external structures not part of the contract, and defective property.
Typical incidents covered under a CAR Insurance provided your sums insured/values are adequate and you adhere to any security conditions attaching to your policy:
- A building contractor is in the process of building a house and has spent €250,000 so far on materials and labour. The property is destroyed by vandals before it has been completed.
- A civil engineering contractor leaves his plant on site until the contract is completed but during the course of his works the plant is stolen and never recovered.
The cover provided is as follows:
Contract Works
This covers loss of or damage to contract works and materials. The contract works section provides cover for the materials and property being worked on. For properties undergoing renovation such as houses, etc., only the alterations including materials are covered under the contract works, not the existing structure. For brand new builds the entire contract including materials etc. used in the contract are included.
Own Plant and Tools
This covers loss or damage to your own plant including heavy machinery, tools & equipment. It covers all equipment from a hand held tool to a self-propelled item of plant. Cover is provided against various perils including theft, fire, vandalism etc. This section can be extended to provide cover for tools belonging to employees also
Hired In Plant
This covers loss of or damage to hired-in plant. This cover should be considered by contractors who hire machinery, as the hire company will not release machinery unless you accept full responsibility for theft, loss or damage to the machinery in question.
Extensions to be considered when buying a CAR Insurance:
Professional fees, Restoration of Plans and Drawings, Fire Brigade Charges, Debris Removal, Public Authorities etc.
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Remember – Contractors All Risk Insurance can be bought to provide cover for a specific contract and will relate solely to the contract in question. Alternatively you can purchase an annual Contractors All Risk Insurance (in tandem with your liability cover) which is not specific to any one contract but will provide cover for any contract you take on during the period of insurance provided your sums insured/values are adequate.
