The insurance industry loves jargon and to over complicate things which many times causes confusion to buyers of construction insurance.

Let’s briefly try and simplify it…

Contract Works Insurance covers the project for fire and perils from the start date (of the project) to its completion or handover eg., a New Build House.

So for example, if the house in question was to catch fire a week before its completion, the insurance policy would reinstate/repair the project ie., the house up to the point it was destroyed.

So when do you need Contract Works ?

This cover is required when your client’s contract makes you, the contractor, directly responsible for the partially completed works throughout the build period.

Using the above example, it is the contractor that would be financially exposed following loss or damage to the house and not their client.

Contract Works will cover the policyholder up to the maximum declared contract value.

Contractors All Risks (C.A.R.) Insurance incorporates the full suite of covers that a Building Contractor/Developer may require.

This can include the above Contract Works plus Public Liability, Employers Liability, Hired-In Equipment, Contractors own Equipment and various other extensions that may be required.

These additional covers can be selected to comprise your Contractors All Risks policy.

Contract Works and Contractors All Risks are often mentioned interchangeably but this is incorrect. It’s important to understand this to avoid errors and possible non-coverage.

For any jargon busting help on Construction Insurance, or help to set up your C.A.R., please call our Construction Team on 0207 731 3700 or Email Us at: