Who Needs Contractors All Risk Insurance?

Construction projects can be unpredictable. From bad weather and theft to accidental damage on site, there’s a lot that can go wrong before a job is finished.

Contractors All Risk Insurance (often called CAR Insurance or Contract Works Insurance) is designed to protect the works, materials, plant and equipment during construction – giving you a safety net if the unexpected happens.

If you work on site, own tools or materials, or are responsible for the works, it’s worth understanding whether this cover should be part of your insurance toolkit.

What is Contractors All Risk Insurance?

Contractors All Risk Insurance provides cover for physical loss or damage to the works in progress on a construction site. This includes partially completed buildings, temporary structures and the materials and equipment you’re using for the job.

“All risks” means it covers most types of physical loss or damage unless they are specifically excluded in the policy – giving broader protection than policies that only cover named events.

This type of insurance is widely used across the construction industry, from small trades to large-scale developers, and can be tailored to suit the size and complexity of your projects.

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What does it cover?

A typical CAR policy can include:

• Works in progress, including partially completed buildings and temporary works
• Materials and equipment on site, whether owned or hired-in
• Employees’ tools and personal effects (often up to a set limit per person)
• Loss or damage from fire, flood, storm, theft, vandalism and accidental damage
• Optional extensions such as non-negligent liability (JCT 6.5.1) or terrorism cover

This means that whether your project is set back by a major incident or a smaller mishap, you won’t be left to absorb the cost yourself.

How is it different from other insurances?

It’s common to confuse CAR Insurance with other covers, but each plays a different role.

• Public Liability protects against injury or property damage to third parties
• Professional Indemnity protects against mistakes, errors, or omissions in design or advice

CAR complements these policies by covering the works and related materials themselves. Without it, you might have cover for liability to others – but not for rebuilding or replacing what you were working on.

Who needs Contractors All Risk Insurance?

You should consider CAR Insurance if you are:

• A main contractor overseeing a build, refurbishment, or extension
• A subcontractor responsible for part of a larger project
• A property developer managing multiple construction sites
• A tradesperson (builder, plumber, electrician) working on significant projects
• A business that owns or hires in plant and machinery
• An employer or funder who needs their interest protected under a construction contract

In a lot of cases, construction contracts will require a CAR policy to be taken out in joint names by the contractor and employer, so both have protection if something goes wrong.

Real-world examples of when CAR matters

Below are some examples of claims that could be covered by a Contractors All Risks policy:

• A fire damages part of a new office build, destroying materials and setting the project back
• Thieves steal hired-in machinery from site, leaving you with a replacement bill
• Heavy rain floods the site, making stored materials unusable
• Accidental damage to the works during installation delays the project

In each case, a CAR policy could cover the cost of repair or replacement, helping you keep the project on track without a major financial hit.

Who takes out the policy and how it works

CAR can be bought as an annual policy covering all your projects, or as a one-off, project-specific policy. It’s often arranged in joint names between the contractor and the employer, and may also extend to protect subcontractors or funders.

Because every project is different, the cost of cover will depend on factors like the value of the works, the type of construction, and your claims history.

Why choose Yutree’s Contractors All Risk cover?

At Yutree, we specialise in making complex cover simple. With in-house underwriting, quick turnaround, and a focus on tailoring policies to your needs, we help you get the right protection for each project. Our team is also on hand to support you if a claim happens – so you can focus on delivering the work.

Protect your project before you start

Contractors All Risk Insurance is more than a box to tick – it’s a safeguard for your business, your reputation, and your client’s project. Whether you’re a sole trader or a large contractor, having the right policy in place can make all the difference when the unexpected strikes.

Get in touch with Yutree today to discuss your next project and see how we can 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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