Construction risks: What brokers need to know to help their clients

September 24, 2025

Placing Contractors All Risks (CAR) insurance isn’t just about ticking a compliance box. In a sector where pressures can shift overnight, the risks facing construction firms are constantly evolving.

From delayed materials and labour shortages to theft and extreme weather, brokers have a crucial role to play in helping clients protect their projects as well as their reputations.

In this guide, we take a closer look at how macro conditions and on-site realities shape construction risk, and how a well-placed CAR policy can make all the difference.

Economic conditions continue to shape construction activity

Construction is often one of the first sectors to feel the impact of wider economic shifts. Interest rates, inflation, and fluctuations in demand for residential and commercial builds all influence how contractors operate.

As a result, many firms are working on tighter budgets, shorter timelines, or unfamiliar project types. For insurance brokers, this raises important questions:

  • Are clients adequately covered for higher rebuild or materials costs?
  • Are the contract values and durations on their policies still accurate?
  • Have working practices or site responsibilities changed?

Even small oversights can lead to significant gaps in cover if a claim arises. That’s why annual reviews and project-specific conversations are more important than ever.

Supply chain and labour pressures raise new exposures

Material shortages and skilled labour gaps continue to cause real-world delays. These issues don’t just impact timelines, they can also increase insurance risk:

  • Extended hire periods for plant and equipment can increase the risk of theft or damage
  • Delays in building works mean greater exposure to adverse weather or vandalism
  • Reliance on subcontractors can lead to less control over safety and workmanship
  • Inflated replacement costs make even minor losses more expensive to recover from

As a broker, identifying these changes early means you can adjust cover to reflect the reality on the ground, rather than relying on outdated policy assumptions.

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The construction risk landscape is evolving

Construction sites have always come with a wide range of risks, but recent years have seen a shift in the types and frequency of losses.

Some of the most common threats now include:

  • Theft of tools, plant, materials and even fuel – often from unsecured or rural sites
  • Flood and storm damage – especially where projects overrun into colder, wetter months
  • Fires caused by hot works, faulty wiring, or poorly stored materials
  • Damage to partially completed works from vandalism, collapse or weather
  • Third-party claims from neighbouring properties or public areas

With more complex sites and tighter margins, a single incident can be devastating. It’s no longer just about insuring assets, it’s about protecting a contractor’s ability to deliver on time and on budget.

Why proactive cover reviews matter

A common issue brokers encounter is clients simply renewing the same policy year after year, without updating limits, values or contract details. In a changing risk environment, this can lead to underinsurance, non-compliance with contract terms, or declined claims.

Now is the time to revisit key questions with your clients:

  • What types of projects are you undertaking this year?
  • Have your contract values changed?
  • Are you hiring more plant, or for longer periods?
  • Is your subcontractor mix different?
  • Do you have any temporary or modular structures on site?
  • Are you aware of any specific site hazards or third-party exposures?

Even a short conversation can make a big difference in protecting their business.

How Contractors All Risks by Yutree supports brokers

At Yutree, we’ve built our Contractors All Risks (CAR) product to give brokers the flexibility and confidence to place a wide range of construction risks.

Here’s what we offer:

  • Backed by Hiscox and underwritten in-house by our specialist team
  • Annual CAR cover, one-off contracts or standalone plant cover available
  • Covers include: contract works, own plant, hired-in plant, employee tools, temporary buildings and terrorism
  • No proposal form required for most risks
  • Competitive premiums, with minimums starting from just £500 + IPT
  • Fast turnaround and same-day documents available
  • High contract limits and complex plant considered (e.g. tunnelling, piling rigs, cranes)

Whether your client is carrying out a small residential build or a complex commercial project, we make it easy for you to deliver the protection they need.

Construction risk is never static, and your clients’ cover shouldn’t be either. With changing project demands, economic pressures and a growing list of site exposures, the best brokers are those who stay curious, ask questions, and help clients see insurance not just as a cost, but as a tool for continuity and credibility.

At Yutree, we’re here to support you every step of the way. Whether it’s placing a one-off contract or reviewing a full portfolio of risks, our underwriting team is ready to help.

At Yutree, we provide industry leading solutions for all contracting trades – from the smallest to the largest firms.

Learn more about how Yutree can help your business and get a quote today:

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