Contractor all-risk insurance, also known as contract works insurance, is a type of insurance policy that is designed to cover losses and damages that may occur during the construction phase of a project. It is a comprehensive insurance policy that is specifically tailored to meet the unique needs of contractors and builders.

So, what does contractor all-risk insurance cover? Let`s take a closer look.

Coverage for Property Damage: Contractor all-risk insurance covers damage to the construction site, including the materials, tools, and equipment used in the project. This type of coverage may include protection against theft, vandalism, fire, or other types of damage that can occur during construction.

Coverage for Third-Party Liability: Contractor all-risk insurance also provides coverage for third-party liability claims. This means that if someone is injured or their property is damaged as a result of the construction work being carried out, the insurance policy will cover the damages.

Coverage for Business Interruption: Contractor all-risk insurance can also provide coverage for business interruption. This means that if the construction site is shut down due to unexpected circumstances, such as severe weather, the policy will cover the costs associated with the delay.

Coverage for Additional Expenses: In addition to the coverage outlined above, contractor all-risk insurance can also provide coverage for additional expenses that may arise during the construction project. This can include the cost of hiring temporary workers, renting additional equipment, or paying for overtime to ensure the project is completed on time.

It is important to note that contractor all-risk insurance does not cover damages or losses caused by poor workmanship or faulty design. These types of issues would be covered under a different type of insurance policy known as professional liability insurance.

In conclusion, contractor all-risk insurance is a comprehensive insurance policy that provides coverage for a wide range of risks associated with construction projects. If you are a contractor or builder, it is essential to have this type of insurance policy in place to protect your business and ensure the successful completion of your projects.