WHAT IS CONTRACTOR ALL RISKS COVER?
Contractors All Risks Insurance is a special policy which covers loss or damage of a construction project which is underway. The project can be of any size or scope and can be either domestic or commercial.
For many contractors, their job site in-progress is worth a small fortune. And we’re not just talking about the materials left on-site, but the uncompleted physical structure itself. Rhino’s comprehensive Contractors All Risks Insurance will cover partially completed buildings and structures, as well as materials used for the build, including plant tools and machinery – even your employee’s tools.
It covers things like theft, flood, fire and accidental damage, meaning that pretty much whatever happens to your existing building works, Contractors All Risks Insurance will step in to make sure you don’t lose out financially. This valuable policy provides building contractors with comprehensive protection at great value.
Rhino’s Contractors All Risks Insurance is a great add-on for building contractors in addition to Rhino Public Liability and Employers Liability insurance.
Understanding Contractors All Risks Insurance is easy with Rhino. Just give us a call on 0116 243 7904 to chat with our friendly, expert team.
How do insurers calculate risk?
Your level of risk will inform the price of your cover.
We will calculate the risk of your project by looking at a few different factors relating to the job you’re undertaking. These factors include the build itself, including the size, the type of materials used, the number of storeys and the general scope and spec. Other factors will include things like the location of the build and the duration of the works.
Do I need a new Contractors All Risks policy for each job?
Remember, you’ll need a new Contractors All Risks policy for each job, as each job is different, and they all come with different risks.
Is contractors All Risks insurance the same as public liability insurance?
No, they are two completely different policies. Public Liability Insurance is there to protect businesses from the financial impact and legal liability for third party injuries, illness, accidents and property damage. If a claim against you is made by a customer or member of the public for any of these things, you’d claim on your Public Liability Insurance policy to cover the associated costs.
Contractors All Risks Insurance exists to insure the contract works before they’re completed. Remember, the partially-completed project or any tools or materials won’t be covered under Public Liability Insurance, which is why All Risks cover is so important for construction contractors and their customers.
To benefit from all-round protection, contractors would need Public Liability Insurance as standard (not forgetting Employer’s Liability Insurance if they have any staff or apprentices), and Contractors All Risks Insurance as an add-on.
Is contractors All Risks the same as professional indemnity?
Again, no, they are two totally separate policies.
Professional Indemnity Insurance acts as a shield against claims made by unhappy customers following specialist advice or guidance you’ve given in a professional capacity. So if you’ve designed a bespoke heating system for a customer which ends up malfunctioning and causing water damage, the cost of the inevitable customer claim will be borne by your insurer, rather than by you.
Most contractors who provide advice, designs or expertise as part of their service would be advised to take out Professional Indemnity Insurance as an add-on policy as part of their suite of contractor’s insurance, alongside Public Liability and Contractor’s All Risks.
Is contractors All Risks the same as contract works insurance?
Yes, Contract Works Insurance is another name for Contractors All Risks Insurance.
Who takes out contractors All Risks insurance?
Usually, the contractor and the customer (their employer) will take out Contractors All Risks Insurance jointly. Either the contractor or the customer can then make a claim under the policy. For specific advice on your situation, give the friendly team at Rhino a call on 0116 243 7904 or start a live chat with us now.
Does contractors All Risks insurance cover hired plant?
We can’t speak for other insurers, but Rhino’s Contractors All Risks Insurance covers any plant, tools, machinery and equipment hired by you. It also covers plant, tools, machinery and equipment belonging to you, or even those belonging to your employees which are left on the job site.
WHAT SPECIFICALLY DOES THE POLICY COVER?
The Policy will provide cover for loss or damage to:
- Actual contract works that are under construction, including a partially completed building, any temporary buildings or materials that will be used in construction.
- Any construction plant, tools, machinery and equipment that belong to you or that you have hired.
- Any tools or effects that have been left on site by your employees, limited to £500 per employee.
WHAT IS THE MAXIMUM AMOUNT THE POLICY WILL PAY OUT?
There are a range of different limits available to you, starting at £10,000 for contract works and increasing to £250,000. The full range of limits are as follows:
| Option A | Option B | Option C | Option D | Option E | Option F | |
| Contract Works Limit | £10,000 | £25,000 | £50,000 | £100,000 | £175,000 | £250,000 |
| Construction plant tools, machinery and equipment | £2,500 | £5,000 | £12,500 | £25,000 | £37,500 | £50,000 |
| Construction plant tools, machinery and equipment hired by the insured | £2,500 | £5,000 | £12,500 | £25,000 | £37,500 | £50,000 |
| Employees Tools and Effects | £1,000 | £1,000 | £1,000 | £2,500 | £3,750 | £5,000 |
WHAT IS THE EXCESS ON THE POLICY?
The Excess applicable to each section is as follows:
| Excess | |
| Contract Works | £500 |
| Construction plant tools, machinery and equipment | £500 |
| Construction plant tools, machinery and equipment hired by the insured | £500 |
| Employees Tools and Effects | £50 |
WHAT EXCLUSIONS APPLY TO THE POLICY?
As with any insurance policy, some exclusions and restrictions apply and we recommend that you read the full Policy terms and conditions before purchasing any sort of insurance cover.
In particular, Contractors All Risks insurance policy from Rhino will not cover loss or damage:
- To any existing structures and or property that you are working on (unless otherwise agreed).
- Due to your wilful act or wilful negligence.
- Due to contamination by asbestos or asbestos dust.
- Where you are relieved of any responsibility under the terms of your contract.
- To mechanically propelled vehicles, other than vehicles designed to operate primarily as tools of trade.
- Theft from unattended vehicles away from the assured premises, unless the vehicle is secured with the keys removed from the vehicle or locked in a secure compound or garage.
WHAT ARE THE PAYMENT TERMS?
You can choose to pay in full upfront for 12 months’ cover, or pay on a rolling monthly payment basis. At Rhino, we don’t impose extra fees for our customers who wish to spread the cost over 12 months, so you don’t lose out however you choose to pay.
