The insurance industry is wrought with jargon. This can often over-complicate matters and create confusion. One of these most confusing subjects seems to be the difference in Contract Works Insurance and Contractors All Risks Insurance

At Titan Insurance, we aim to keep things clear and simple. We also to help you with the correct construction insurance for your project, so that you’re fully covered should anything happen.

What is Contracts Works Insurance?

Contract Works Insurance is designed to cover the project for fire and perils from the start date of the project, right up to its completion or handover. This insurance would be taken out if you are building a new house, for example.

What does Contracts Works Insurance cover?

Let’s say that the house you’re building were to catch fire a week before its completion. Contracts Works Insurance is the insurance policy that would reinstate or repair the project. Therefore, the house would be rebuilt up to the point where it was destroyed.

building under construction with construction insurance

When do you need Contract Works Insurance?

This cover is required when your client’s contract makes the contractor directly responsible for the partially completed works throughout the build period. Using the above example, the contractor would be financially exposed following loss or damage to the house, and not their client. Taking out construction insurance will cover the policyholder up to the maximum declared contract value. Always make sure that your construction insurance policy claim will pay.

What is Contractors All Risks Insurance (C.A.R.)?

This type of policy incorporates the full suite of covers that a building contractor or property developer may require. It can include the Contract Works Insurance as well as public liability, employer’s liability, hired-in equipment, contractor’s own equipment and various other extensions that may be required. All of this additional cover can be added to your Contractors All Risks Insurance policy.

Contract Works and Contractors All Risks Insurance are often mentioned interchangeably. This, however, isn’t correct as they are not the same thing. As a builder or developer, it is important to understand the differences in the cover, to avoid errors and possible non-coverage.

Contact Titan Insurance today. Our team of construction insurance experts are ready to answer any questions you make have. Call us on 0207 731 3700 or feel free to drop us an email.