What Does Contractor All Risk Insurance Cover?

If you’re managing building projects — whether it’s new builds, extensions, or refurbishments — Contractor All Risk insurance gives you vital protection for the work in progress, your materials, and your tools. Let’s break down exactly what contractor all risk insurance covers and why it matters.

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What does contractor all risk insurance cover?

What Is Contractor All Risk Insurance?

Contractor All Risk (CAR) insurance is designed to cover the physical works and materials on a job site, from the moment ground is broken until handover.

Unlike public liability, which covers injury or property damage to third parties, CAR protects your actual project — including damage to the structure you’re working on, tools, temporary works, and more.

What Does Contractor All Risk Insurance Typically Cover?

1. Contract Works

This is the core of the policy. It covers the permanent and temporary works you’re contracted to carry out — from foundations and frameworks to finishing touches — if they’re damaged by:

Fire
Flood or storm
Theft or vandalism
Accidental damage
Collapse or structural failure

Example: You’re halfway through a loft conversion when a sudden storm causes part of the structure to collapse. CAR insurance can cover the cost to rebuild the damaged portion.

2. Materials and Supplies on Site

Covers materials you’ve purchased and stored on site (or in transit), ready for use in the project.

Example: You’ve got £5,000 worth of kitchen units delivered and stored in the extension ready for install — but they’re stolen overnight. You’re covered.

At ABA Insurance, we can tailor your policy to cover materials in storage, in transit, or even awaiting installation.

3. Tools, Plant, and Equipment

CAR insurance can include owned and hired-in plant, hand tools, and power tools — both large and small.

Excavators and dumpers
Scaffold and site huts
Mixers, compressors, generators
Drills, saws, and trade-specific gear

Optional extensions include overnight cover from vans, cover for hired-in tools under contract, and more.

4. Temporary Buildings and Site Setups

Includes cover for temporary works, such as:

Site cabins
Welfare units
Temporary electrics or plumbing
Scaffolding or formwork

Example: A fire damages your site office, including plans, tools, and materials. CAR insurance helps replace both the structure and the contents.

5. Ongoing Projects and Delays

Some policies can be extended to cover:
- Debris removal
- Professional fees (e.g. architects, engineers)
- Additional costs due to project delays
These extras can make a big difference on larger jobs or commercial projects with tight handover deadlines.

Who Needs Contractor All Risk Insurance?

CAR insurance is ideal for:

Main contractors running full construction jobs
Subcontractors responsible for specific trades (if you’re supplying materials or managing risk)
Self-employed builders or multi-trade operators doing large domestic jobs
Developers who want cover from groundwork to handover

If you’re responsible for the project or materials, and especially if you’re signing contracts with financial penalties, you likely need CAR insurance.

Is Contractor All Risk Insurance the Same as Public Liability?

No — they cover very different risks and in most cases you need both:

Public Liability	Contractor All Risk
Covers third-party injury or damage	Covers damage to the actual work you’re doing
Required for access to most sites	Essential for protecting the build itself
Doesn’t cover tools or materials	Includes tools, plant, materials, and works

Is Contractor All Risk Insurance the Same as Public Liability?

It’s not legally required — but many principal contractors, developers, and local authorities will insist on it before work starts. It’s also a contractual requirement in many JCT contracts and design & build agreements.

How Much Does Contractor All Risk Insurance Cost?

That depends on:

The type and value of work you carry out
Whether you need cover for tools, plant, or hired-in equipment
The size and duration of your contracts
Your claims history

At ABA Insurance, we provide tailored quotes to suit your business — with flexible monthly payments and support from advisors who understand the trade.

We’ve insured thousands of self-employed tradespeople across the UK, from sole traders just starting out to contractors with years under their belt.

Competitive premiums
Flexible monthly payments
Quick turnaround on quotes
Support from specialists who know the trade

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/