Contractors All Risk

Contractors All Risk

Contractors All Risk Insurance provides indemnity to either the contractor or the employer

For loss or damage to building and equipment during construction. This policy also extends to provide compensation for injury claims made by third parties arising from the construction work being done.

Contractors’ all risks (CAR) insurance is a non-standard insurance policy that provides coverage for property damage and third-party injury or damage claims, the two primary types of risks on construction projects. Damage to property can include improper construction of structures, the damage that happens during a renovation, and damage to temporary work erected on-site.

Third parties including subcontractors may also become injured while working at the construction site. CAR insurance not only covers those associated risks but also bridges these two types of risks into a common policy designed to cover the gap between exclusions that would otherwise exist if using separate policies.

CAR insurance coverage is common for such construction projects as buildings, water tanks, sewage treatment plans, flyovers, and airports.

Why choose Covenant Insurance Brokers?

Why do you need Contractors all risk insurance?

contractors all risk insurance is different to public liability insurance. The main purpose of public liability insurance is to protect you from legal liability for injuries inflicted on third parties, such as customers and members of the public. Public liability insurance also covers property damage that may result from your business activities. As an example, if your employees were to scratch a client’s walls when moving items, this damage would be covered by public liability insurance. A customer may also slip when walking through your store or office, and this may result in physical injuries. Such incidents are also covered by public liability insurance. The insurance company will pay the legal expenses related to the damage, and this includes any legal fees. Also, it will cover the compensation for the damage. Here are some areas which are not covered by public liability insurance, but they are covered under contractors all risk insurance: Damage to contract works that result from unexpected issues like floods, fires, and explosions Damage to contractors’ machinery or equipment at the worksite May not cover hot works and welding Issues with the piling, demolition, and excavation works Issues with marine cargo and inland transit when shipping goods


Liability insurance can offer coverage to a construction company well after the completion of the job. All-risks insurance has limits by comparison. The latter ends when the job ends.
War, earthquakes, pollution, infestation, and nuclear hazards. Lesser factors like normal wear and tear, market loss, and government seizure are also not covered.
Yes. Theft is part of contractors’ all-risk insurance. Also included are weather, fire, repairs to unfinished work, and vandalism.

While not contractors will carry the same insurance, the most common include:

  • Equipment and tools
  • Professional liability
  • Commercial auto
  • General liability
  • Workers’ comp
  • Surety bonds
  • All-risks

Request Your Quote

    We're Here to Help!