Contractors all-risk insurance

Contractors’ all-risks insurance, sometimes called contract works insurance, is a type of construction cover that helps insure your materials, equipment and ongoing contract works against physical loss or damage.

The term ‘all-risk’ means the policy is designed to cover a wide range of risks that can affect a construction project. While not every risk is included, it typically covers things like fire, theft, vandalism and accidental damage to works in progress. The policy will contain exclusions such as wear and tear; electrical and mechanical breakdown; damage due to gradually operating causes amongst others. It’s important to review the policy wording provided when you arrange the cover. You will also be responsible for the first part of any claim i.e. an excess. The actual amount will vary between insurers.

This type of insurance is especially useful on active building sites, where tools, machinery, plant and materials are often left unattended or exposed to the elements. If something unexpected happens, like a fire damaging a half-built extension, contractors’ all-risk insurance can help cover the costs of putting things right. Check with your customers or main contractors, as this type of insurance cover is often required as part of the contract terms.

Markel Direct provide and administer this cover. Markel Direct is a trading name of Markel International Insurance Company Limited who is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Financial Services Register no. 202570).

Contractors can risk legal action in respect of their liability to others for accidental personal injury or property damage arising from their activities. Potentially, the awards that can be made as a result of a successful claim can be substantial.

Unfortunately, even the legal costs of defending the most spurious claim may cause financial hardship. This underlines the importance of being insured for Public liability. This covers legal defence costs and compensation awards arising from accidental bodily injuries and property damage caused to others during your work.

Yes, Contractors All Risk will insure both permanent and temporary construction projects and as well as all materials you’re using on the project and Plant and Contractors Combined will cover you for both above, plus Liability insurance.

If you engage additional labour and staff on contract work, you will need employer’s liability insurance.

Yes, legal defence costs for liability claims are included as a standard option in our contractors’ cover. Plus, if you want Commercial Legal Expenses insurance then we can arrange this as an optional extra. The limit starts at £100,000 with the option to increase.

Tailored contractors’ all-risks cover

Contractors all risk insurance can be tailored to your needs. As standard, it covers the Contract works with cover options to include loss or damage to hired in plant, own plant and tools. It can be extended to cover contracting in hazardous or high-risk areas.

Contract works insurance

Contract works cover is typically included as standard in a Contractors All-Risks insurance. It provides insurance for damage to works in progress from threats including fire, flood, storm, malicious damage, and theft.

Contractors’ all-risk insurance is designed for businesses managing physical works on a construction site. It doesn’t matter if you’re building from the ground up or making improvements to an existing structure. You might need this type of cover if you are: 

-      A builder, tradesperson or subcontractor.

-      A project manager overseeing multiple contractors.

-      A developer working on refurbishments, conversions or new builds.

-      Responsible for tools, materials or hired-in plant and equipment on-site. 

Contractors’ All Risks insurance is particularly important for building projects where damage or delays could lead to costly losses and setbacks. In many cases, it’s a contractual requirement—especially for larger projects or those involving local authorities or commercial clients. While contractors’ all risks insurance doesn’t cover contractual fines or penalties, it ensures funds are available to reinstate the works to their previous stage if physical loss or damage occurs from an insured peril such as fire, storm, or theft.

If you’re unsure, check your contract or speak to our expert brokers to see if contractors’ all-risk insurance is right for your role.

Tailor your cover with flexible contract works limits and include tools, plant and equipment.

• Public Liability -  Limits of indemnity are available from£1m, £2m, £5m, £10 million or higher

• Cover for high-risk trades and locations options.

• Local support

Contractors’ all-risk insurance can bring together cover for contract works, tools, materials and plant all under one policy. It’s designed to protect builders, tradespeople and developers against the unexpected, helping you keep projects on track.

 Get a quote, call 0330 828 5519 or request a callback.

It’s easy to confuse contractors’ all-risks insurance with public liability cover, but they protect against different risks. Many contractors arrange both property and liability insurances for wider cover. Here’s a simple comparison: 

To help you spread the cost of your premiums, you can choose to spread payment over ten months with the Markel Direct quick and easy Direct Debit scheme.

While contractors’ all-risks insurance provides broad protection, it won’t cover everything. Like most insurance policies, there are some common exclusions you should be aware of. These often include: 

●      Faulty workmanship — This includes poor construction or installation that causes damage.

●      Wear and tear — This includes general deterioration over time.

●      Design errors — This includes faults in architectural or engineering plans.

●      Damage before the policy starts — This is also for after the project is completed. 

To understand exactly what’s included or excluded, it’s always best to review your policy wording or speak to an insurance broker specialist.

 Additionally, Contractors public and employers' liability cover

We can arrange public liability cover for contractors with a choice of limits up to £10 million, as well as employers' liability insurance. If you are involved in the design and construction, then professional indemnity insurance is also available under a separate policy.

Contractors’ Liability insurance cover is offered for high-risk trades, such as scaffolding, hot roofing and underpinning. We can also arrange cover for contract work in hazardous or high-risk locations, if required.

Contractors’ all-risk is not a legal requirement, but it may be contractually required, especially on commercial projects or when working for local authorities. Providing important insurance cover for the Contract.

Many insurers offer project-based contractors all-risk cover for one-off jobs. This can be useful for sole traders or smaller contractors working on short-term projects. Economically it often works out better to insure all of your contracts annually.

Some include optional cover for subcontractors’ tools or employee equipment, while others may require separate cover. Always check the details or speak to your broker.

Construction projects can be unpredictable, from accidental damage to theft on-site. Contractors all-risks insurance helps you manage these risks and keep your project moving if something goes wrong. This type of cover supports:

●      Business continuity — By covering damage to works in progress.

●      Protection for your assets — Including tools, materials and equipment.

●      Reduced financial impact — For if delays or losses occur mid-project.

Rather than reacting to problems after they happen, contractors’ all-risk insurance is a proactive way to arrange protection. It’s a practical choice of insurance for builders and contractors who want to minimise disruption and keep their projects on track.

If you bought your policy before 18^th July 2024, you can view all your documentation in your online portal. If you purchased your policy on or after the 18^th July 2024, access your documents at Markel's UK website.