Contractors All Risks Insurance
A contractors all risks policy usually covers the physical loss, or damage, to the insured property caused by: fire, lightning, aircraft, explosion, earthquake, riot, civil commotion, malicious damage, storm, tempest, flood, escape of water, impact by third party vehicles, impact by own vehicles, theft and accidental damage. Theft from unattended vehicles is usually excluded or may be restricted to working hours.
Polices usually cover any contract site within the United Kingdom, however cover can be extended to cover contract sites in the EU or worldwide, on referral.
Standard sections of cover include:
- Contract Works – to cover materials and work in progress, up to a specified Maximum Contract Period Own plant, tools, machinery and equipment
- Own temporary buildings
- Hired in Plant – limit any one item / any one occurrence
- Employees Tools – a limit any one employee is usually specified
The premiums for contractors all risks policies, are usually calculated based on:
- Sums insured for own plant/equipment
- Sums insured for site huts/temporary buildings
- Limit any one item/any one occurrence in respect of hired in plant
- Estimated contracting turnover (i.e. the total turnover – supply only turnover)
- Estimated annual hire charges